Smart Advertising Services Market Size, Share & Trends Analysis Report By Service Type (Email Advertising, Video Advertising, Mobile Advertising), By Platform Type, By Pricing Model, By Enterprise Size, By End-user, By Region, And Segment Forecasts, 2023

Smart Advertising Services Market Size, Share & Trends Analysis Report By Service Type (Email Advertising, Video Advertising, Mobile Advertising), By Platform Type, By Pricing Model, By Enterprise Size, By End-user, By Region, And Segment Forecasts, 2023 - 2030

Smart Advertising Services Market Growth & Trends

The global smart advertising services market size is expected to reach USD 1.87 trillion by 2030, expanding at a CAGR of 20.4% during the forecast period, according to a new report by Grand View Research, Inc. Smart advertising services are the services offered by advertising agencies to create ad campaigns for businesses based on consumer preferences and drive traffic to businesses’ websites. Advertisers have realized that presenting high-quality digital media on digital displays is particularly helping in capturing consumer attention, encouraging consumer interaction, and increasing brand recognition, which is particularly driving the demand for smart advertising services.

Increasing digitization has created new channels (such as social platforms) to advertise any company’s offerings. Similarly, changing data consumption, availability of multiple advertisement channels, and rising internet penetration have propelled advertising agencies to develop innovative ad campaigns and attract more audiences.

The outbreak of the COVID-19 pandemic severely impacted enterprises across several industries, including smart advertising services. The industry witnessed considerable obstacles in operations as lawmakers and companies put in place preventive measures to keep employees safe. Advertising media suffered a substantial decrease in investments during the pandemic.

Revenue losses resulted in temporary layoffs at numerous advertising agencies. Furthermore, the lack of economic activities had an impact on the demand for smart advertisements. Advertising companies have started shifting their focus to alternative delivery channels, particularly Over-The-Top (OTT) providers. As a result, many major media companies across the globe have increased their investments in over-the-top services in recent years. This trend is likely to continue with the increasing audience base on OTT platforms, thus contributing to market growth.

Based on service type, the SEO content creation services/search engine advertising/marketing segment dominated the market in 2022. Search Engine Optimization (SEO) can be described as the practice to align a particular website with the ranking algorithms of search engines so that the website can be crawled and indexed easily to be displayed under the relevant queries of the Search Engine Results Pages (SERP).

SEO particularly targets unpaid traffic to improve the quality of the traffic to the website from search engines. A website with a higher ranking on the SERP can potentially capture more users and open more business opportunities.A subset of online marketing is search engine advertising (SEA). Search engines such as Google and Bing display advertisements in the form of text or graphics.

Based on end-user, the retail & consumer goods segment accounted for the largest market share in 2022. A retail marketing strategy envisages an approach being pursued by retailers to acquire new customers and encourage them to buy in-store or order online. Retailers particularly employ smart advertising tactics to raise awareness about their products among the target audience and subsequently augment sales. At present, most retailers are focused on attracting new customers. The retail marketing plan must be evaluated regularly to achieve optimal performance.

North America dominated the smart advertising services industry in 2022 as it is experiencing high penetration of smart advertising services owing to the region’s tendency to adopt new technologies. The increasing number of manufacturers of electronic display products and hardware components, software developers, and research and development activities across the U.S. and Canada is expected to fuel regional growth.

For instance, in June 2022, Comscore, Inc., a trusted partner for media transacting, planning, and evaluating, reported that ad-supported streaming services gained more traction compared to subscription-based services. In 2022, there was a 29% increase in U.S.-based households that used ad-supported services compared to 2020 and a 21% increase in Subscription Video On Demand (SVOD) during the same period.

A few market players include YouTube; Meta; Google LLC; VaynerMedia; Omnicom Group Inc.; ibex Limited; Interpublic Group of Companies, Inc.; Twitter, Inc.; TikTok; Hulu LLC; Amazon.Com, Inc.; Alibaba Group Holding Limited; Microsoft; Deloitte; IBM; and BlueFocus. Evolving business models and competitive pressures are prompting market players to reduce development cycles, innovate continuously, and provide highly efficient smart advertising services.

All these market players are pursuing strategic partnerships and collaborations, and mergers & acquisitions as part of their efforts to defend their market share. For instance, in December 2022, the National Football League (NFL) announced that its subscription package for Sunday Ticket would be available on YouTube TV starting the following season. This marked the NFL’s second media rights agreement with a streaming service. YouTube was looking forward to leveraging the partnership to increase its presence in the competitive streaming market.

Smart Advertising Services Market Report Highlights

• The growing preference for digital media, the increasing adoption of digital displays, and the continued rollout of high-speed mobile data networks are the key factors that are expected to drive the growth of the smart advertising services market
• Advertising companies have started shifting their focus to alternative delivery channels, particularly Over-The-Top (OTT) providers. As a result, many major media companies across the globe have increased their investments in over-the-top services in recent years
• The search engine advertising segment dominated the overall market with a revenue share of 26.3% in 2022 and is expected to witness a CAGR of over 21.0% during the forecast period
• The performance-based advertising segment dominated the overall market in 2022 and is expected to maintain its dominance across the forecast period
• The primary source markets for smart advertising services are the U.S., Canada, the U.K., Germany, France, China, Japan, India, Brazil, and Mexico. The U.S. is anticipated to be the primary source market. The increasing number of manufacturers of electronic display products and hardware components, software developers, and research and development activities across the U.S. and Canada is expected to fuel the smart advertising industry’s growth in North America