Global Digital Advertising Market Size, Share & Trends Analysis Report By Offering (Solution, and Services), By Platform, By Format (Video, Image, Text, and Others), By Type, By End-user, By Regional Outlook and Forecast, 2023 - 2030

Global Digital Advertising Market Size, Share & Trends Analysis Report By Offering (Solution, and Services), By Platform, By Format (Video, Image, Text, and Others), By Type, By End-user, By Regional Outlook and Forecast, 2023 - 2030

The Global Digital Advertising Market size is expected to reach $1041.9 billion by 2030, rising at a market growth of 14.5% CAGR during the forecast period.

Advertisers create videos that match the look and feel of the platform, ensuring a more natural and non-disruptive viewing experience for users. Therefore, the Video advertising segment captured $74,314.7 million revenue in the market in 2022. Video advertising extends to live-streaming events and webinars. Advertisers utilize live video to interact with audiences in real time, providing a platform for product launches, Q&A sessions, and behind-the-scenes content. Native video advertising seamlessly integrates video content into the user experience of a platform. Advancements in video technology include 360-degree videos and VR experiences. Advertisers use these immersive formats to provide users with unique and interactive brand experiences, transporting them to virtual environments.

The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, In October, 2022, Verizon partnered with Reset Digital. Reset Digital's science and technology-based approach enables Verizon to reach broader and more diverse customers. Additionally, In July, 2022, Microsoft announced its collaboration with Netflix for a cheap ad-supported Netflix Subscription plan. As they collaborate to develop a new ad-supported service, Microsoft has the track record to handle all of Netflix's advertising requirements.

Based on the Analysis presented in the KBV Cardinal matrix; Google LLC (Alphabet Inc.) and Microsoft Corporation are the forerunners in the Market. In June, 2022, Google Cloud signed a partnership with Birlasoft, a software company. Under this partnership, Birlasoft strengthens and aligns with Google's Global traffic management plans in India. Moreover, Birlasoft's cud transformation solutions and legacy of offering business transformation services would enhance customer experiences that will benefit enterprises of all sizes. Companies such as Verizon Communications, Inc., Meta Platforms, Inc. (Meta) and Adobe, Inc. are some of the key innovators in the Market.

Market Growth Factors

The proliferation of the internet is a fundamental driver of digital advertising growth. As more people gain access to the internet globally, the potential reach of these advertising expands. The expanding number of people using smartphones and other connected devices is another factor in the growing online audience. Advertisers can leverage these advertising to drive traffic to e-commerce websites, promote online sales, and engage with consumers throughout the online shopping journey. Increasing internet penetration is not limited to urban areas but extends to rural and remote regions. This connectivity helps bridge the digital divide and enables advertisers to reach audiences in diverse locations. Advertisers can implement localized strategies to connect with urban and rural consumers, considering regional preferences and cultural nuances. Hence, the market is expanding significantly due to the increasing internet penetration rate.

Additionally, the growth of e-commerce has played a pivotal role in driving digital advertising. Businesses leverage digital channels to promote online marketplaces, enhance brand visibility, and drive traffic to e-commerce platforms. Advertisers target consumers at various stages of the online shopping journey, from product discovery to purchase. Advertisers use these advertising to promote e-commerce sales events, discounts, and promotions. Advertisers utilize social media platforms for advertising, seamlessly integrating e-commerce features and allowing users to discover and purchase products directly. To build trust and credibility, it often incorporates customer reviews, testimonials, and user-generated content. Positive reviews and endorsements can influence potential buyers and contribute to the success of e-commerce campaigns. Thus, expansion of e-commerce platforms has been a pivotal factor in driving the growth of the market.

Market Restraining Factors

However, privacy regulations may restrict how advertisers can deliver personalized and targeted ads based on user preferences and behavior. Advertisers may need to rely on more general audience targeting, potentially diminishing the relevance and effectiveness of their campaigns. Adhering to privacy regulations requires significant resources and compliance efforts. Heightened privacy concerns can lead to a decrease in user trust. Users may become more cautious about interacting with ads and sharing personal information, potentially reducing engagement rates, and hindering the effectiveness of these advertising campaigns. Privacy regulations can affect the ability to track user behavior across different touchpoints, impacting retargeting efforts and attribution models. Advertisers may face challenges in accurately attributing conversions to specific interactions and optimizing campaigns accordingly. Thus, privacy concerns and regulations can slow down the growth of the market.

By Offering Analysis

On the basis of offering, the market is divided into solution and services. In 2022, the solution segment dominated the market with maximum revenue share. Advertisers can target audiences based on their real-time position by utilizing driving solutions, such as GPS and location-based services. This allows for highly targeted and relevant advertising, such as promoting nearby businesses or offering location-specific deals. Advertisers leverage driving solutions to integrate advertisements into navigation apps or services. Advertisers in the automotive industry use driving solutions to promote vehicle-related products or services. This includes advertising for car maintenance, repair shops, accessories, insurance, and car-related apps.

By Platform Analysis

By platform, the market is categorized into computer, smartphone, and others. The computer segment covered a considerable revenue share in the market in 2022. Computers serve as primary devices for online browsing and search activities. Users frequently utilize search engines to find information, products, and services. Advertisers capitalize on this behavior through search engine marketing (SEM), ensuring their ads appear prominently in search results. Websites are accessed via computers, and display advertising is a common practice to capture users’ attention. Advertisers place banners, pop-ups, and other display ads on websites to promote products and services, enhancing brand visibility and driving traffic. Advertisers promote products through digital channels, directing users to e-commerce websites to make purchases, take advantage of discounts, and participate in online sales events.

By Format Analysis

Based on format, the market is classified into text, image, video, and others. In 2022, the video segment witnessed the largest revenue share in the market. The popularity of video content on social media platforms has led to the rise of social media advertising. Advertisers leverage these platforms to deliver video ads, capitalizing on the large user bases and the sharing culture inherent in social media. The growth of video-on-demand and streaming services has opened new opportunities for advertisers. Platforms like Netflix, Hulu, and others offer a different environment for video ads, allowing advertisers to tap into a dedicated and often subscription-based audience.

By Type Analysis

By type, the market is segmented into search advertising, banner advertising, video advertising, social media advertising, native advertising, and interstitial advertising. The banner advertising segment recorded a remarkable revenue share in the market in 2022. Banner ads leverage visuals, colors, and graphics to create visually appealing displays. This visual appeal helps build brand awareness as users are exposed to eye-catching and memorable advertisements, contributing to brand recognition. Advertisers incorporate interactive and rich media elements into banner ads to create engaging experiences. This includes features such as video, animations, and interactive elements, making banner ads more captivating and memorable.

By End-user Analysis

Based on end-user, the market is fragmented into BFSI, automotive, IT & telecommunication, healthcare & lifesciences, consumer electronics, retail, media & entertainment, education, and others. In 2022, the retail segment led the market by generating highest revenue share. Retailers use these advertising to generate buzz around new product launches and announcements. Video content, social media campaigns, and targeted ads help create awareness and excitement, driving consumer interest and engagement. It enables retailers to create personalized and tailored messages for individual consumers.

By Regional Analysis

Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region led the market by generating the highest revenue share. North America has a high internet penetration rate, with a considerable proportion of the population accessing the internet. North America is known for having a tech-savvy consumer base that quickly adopts new technologies and digital platforms. Social media platforms are immensely popular in North America, with millions of users engaging on platforms like Facebook, Instagram, Twitter, and LinkedIn.

Recent Strategies Deployed in the Market

• May-2023: Google, Inc. expanded their partnership with SAP SE, develops enterprise software to manage business operations and customer relations, to introduce a comprehensive open data solution. The solution will help customers to build a complete data cloud that conduct data from their enterprise landscape via SAP Datasphere and Google's data cloud. Additionally, the solution will allow businesses to monitor their real-time data holdings, maximizing the value of Google Cloud and SAP software investments.
• May-2023: Google, Inc. revealed its plans to integrate generative AI capabilities into its products, such as Search and Gmail. Additionally, Google intended to utilize PaLM 2-powered tools for advertisers to create media and suggest YouTube video ideas. For creators, the tech experimented by offering five topic-based video ideas.
• Jan-2023: Twitter partnered with Integral Ad Science, a technology company, and DoubleVerify Holdings Inc., a software platform for digital media measurement and analytics. Through this partnership, companies would offer advertisers tweet-level analysis on content featured next to their ads. Additionally, companies would independently verify that digital ads are seen by real people.
• Dec-2022: Twitter released new controls for enabling companies to prevent their ads from appearing below or above tweets having certain keywords. With the launch of New Controls, the company wants to reassure and attract the advertisers who have withdrawn ads from the platform.
• Nov-2022: AWS launched AWS for Advertising & Marketing, an offering that would combine purpose-built services, and AWS solutions to empower customers in the operation of Audience & Customer Data Management, Privacy-Enhanced Data Collaboration, Ad Intelligence & Measurement, Ad Platforms, and provide Digital Customer Experience.
• Oct-2022: Verizon partnered with Reset Digital, a US-based provider of the Neuro-Programmatic platform. Reset Digital's science and technology-based approach enables Verizon to reach broader and more diverse customers.

List of Key Companies Profiled

• Adobe, Inc.
• Amazon Web Services, Inc. (Amazon.com, Inc.)
• Baidu, Inc.
• ByteDance Ltd.
• Publicis Groupe (Epsilon Data Management, LLC)
• Meta Platforms, Inc. (Meta)
• Microsoft Corporation
• Google LLC (Alphabet Inc.)
• Verizon Communications, Inc.
• X Corp. (Twitter, Inc.)

Global Digital Advertising Market Report Segmentation

By Offering

• Solution
• Services

By Platform

• Smartphone
• Computer
• Others

By Format

• Video
• Image
• Text
• Others

By Type

• Search Advertising
• Banner Advertising
• Video Advertising
• Social Media Advertising
• Native Advertising
• Interstitial Advertising

By End-user

• Retail
• Automotive
• Consumer Electronics
• Healthcare & Lifesciences
• Media & Entertainment
• BFSI
• Education
• IT & Telecommunication
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA