Advertising Services Industry Overview
|Study Period:||2018 - 2028|
|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Advertising Services Market Analysis
Advertising Services Market is expected to register a CAGR of over 16% during the forecast period (2022 - 2027). Technological developments in regard to the rapid growth of the internet combined with its increasing commercial use due to the growing number of Internet users across the emerging economies have shaped the evolution of advertising services through different modes of advertising,
- Technological developments in regard to the rapid growth of the internet combined with its increasing commercial use due to the growing number of Internet users across emerging economies have shaped the evolution of advertising services through different Modes of advertising. Easier access to a computer increased the utilization of smartphones, and the modernization of countries around the world gave people the opportunity to use the internet more frequently and with more convenience.
- The growing demand for social media advertising services helps generate immediate results on social media, thereby leveraging the most cost-effective and targeted form of advertising available. Social networking is one of the most popular online activities. Facebook is one of the most popular online networks based on active usage. According to Facebook (Meta), there were around 2.91 billion monthly active users as of Q4 2021. As of October 2021, Facebook’s audience base was highest in India, with almost 350 million users, followed by the United States, with approximately 193 million users.
- Furthermore, there are growing on-demand services from digital advertising agencies with the rise of the Internet era, which has led to a divergence of consumer attention away from traditional forms of media toward more digital formats. Advertising via online platforms has emerged as a powerful industry. Ad spending is still on the rise owing to the influx of new companies and technologies.
- With almost 1.5 billion daily active users who spend an average of 41 minutes on the platform every day, Facebook stated that it has one of the largest and most engaged user bases out of all the social media platforms. To effectively monetize its audience, the company built the best targeting tools and the most cost-effective ads for advertisers. As brands and agencies worry about declining organic reach, platforms such as Instagram have continued to expand their ad offerings to include paid placement on the Instagram Explore page. This effectively increased the volume of ads they could sell.
- Additionally, the increasing number of mobile phone users across various emerging economies in the world is expected to drive the demand for online-based advertisement services. According to Ericsson, the number of smartphone subscriptions worldwide is around six billion. It is expected to grow further by several hundred million in the next few years, reaching 7.6 billion by 2027. The countries with the highest smartphone users include China, India, and the United States.
- Moreover, a 6-second ad format is increasingly gaining popularity on various social media platforms. According to new research by the Advertising Research Foundation, short-form, six-second ads on TV capture 8% to 11% more attention per second than longer ads.
- In May 2022, Microsoft Advertising expanded into 32 new countries in Latin America (LATAM) and Asia Pacific (APAC). This advertising opportunity comes just a few months after they announced the debut of 29 new markets in Europe and Africa, marking the first phase of their global expansion this year. This second phase delivers even more significant growth in the worldwide presence. It is a critical approach in which we enable advertisers to benefit from the expanded reach of a unique community of Workday Consumers.
- The COVID-19 pandemic might have reduced the ad spending in the short term, but it would make companies look into unexplored areas of ads and marketing in the future. Even during the lockdown, many organizations tried to reach their audience using online ads and marketing tools. The post-COVID-19 consumer is indoors and available online, making the paradigm shift in marketing strategy a must for small and big businesses.
Advertising Services Industry Segments
Advertising services use every possible media to get its message through via television, print (newspapers, magazines, and journals), radio, press, internet, direct selling, hoardings, mailers, contests, sponsorships, posters, clothes, events, colors, sounds, visuals, and even people (endorsements). Marketing agencies adopt various communication modes with the users of a product or service. A reliable marketing strategy typically involves adopting a variety of advertising channels, with a clear understanding of the purpose of each of them.
The scope of the study for the advertising services market has segmented the market by type of platform and channel of service in a wide range of industries in various countries across North America, Europe, Asia-Pacific, Middle East, and Latin America.
|By Channel of Service|
|Social Media Publishing|
|By End-user Industry|
|Travel & Tourism|
|Media & Entertainment|
|Other End-user Industry|
|Middle East & Africa|
Advertising Services Market Trends
This section covers the major market trends shaping the Advertising Services Market according to our research experts:
Retail Segment is Expected to Have Significant Share in the Market
- Advertising spending in the retail industry has been increasing rapidly with the introduction of online platforms and the eCommerce era. Moreover, the rise in the trend of e-commerce and m-commerce further propelled the growth in internet advertising on the mobile platform as more people use their mobile phones to browse the internet and enjoy internet-based shopping services.
- There have been various developments by companies in the retail industry, such as expansion activities and partnerships. For instance, in February 2022, Criteo SA announced a retail media advertising partnership with Michaels, a specialty arts and crafts retailer in North America. The partnership authorizes Michaels to scale its retail media program with a full suite of solutions and capabilities, including sponsored products, display, and off-site advertising.
- Moreover, In November 2021, Albertsons launched its retail media network to develop digital ads and other branded content for CPG companies. The Albertsons Media Collective will be led by Kristi Argyilan and will begin running ad campaigns in February 2022.
- The key players in the Retail Industry are focusing on expanding their footprints by increasing their stores across various regions, also resulting in increasing the market opportunities. In September 2022, Costco is expanding, with at least 11 additional shops set to open in the next months, ranging from Riverton, Utah, in May 2022 to Gimhae, South Gyeongsang Province, South Korea, in August 2022. (Costco already has a large international presence.)
- Moreover, In July 2021, Publicis Groupe announced the acquisition of CitrusAd, a software as a service (SaaS) platform optimizing brands' marketing performances directly within retailer websites.
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North America is Expected to Hold Significant Share
- The advertising spending in the North America region is increasing rapidly, owing to the ascending smartphone and internet penetration and consumers’ willingness to purchase goods and services online.
- It is encouraging advertisers to run diverse and rigorous campaigns, that is expected to drive market growth across the region over the forecast period. Moreover, with the plethora of companies having their operation solely based on mobile applications, the companies are redefining their marketing strategies and online promotion of their products and services.
- The migration of ad spending to digital media continued to drive change in the region, especially from digital ads, including search, social, and mobile, which has surpassed TV ad revenue. There is a continual increase in the expenditure on media and entertainment in the country.
- The region is home to many of the leading retail companies in the world, including Walmart, Costco, and Amazon. Most of these companies' sales are generated within their domestic market, and as such, they are the dominating players within the American retail industry as well. Amazon, in particular, hasseen extreme levels of growth in revenue in tandem with the increase of e-commerce in United States.
- The retail industry in the United states has a higher percentage of total spend on advertising. Therefore, the rise in advertisement spending is predicted to fuel the demand for the advertising services market. According to the US Census Bureau, by the end of 2021, total retail sales in the country reached approximately USD 6.6 trillion, around USD one billion increase from the year before.
- Few players in this region focus on expanding their services globally, which assists them in increasing their market capability. For instance, In May 2022, Based in San Francisco, Instacart announced plans to expand its advertising business abroad. Instacart Ads is now available in Canada, allowing CPG brands and media agencies to engage with Canadian consumers as they search and discover products.
- In August 2022, Microsoft announced nine new upgrades on its blog. New Automotive Ads, vertical-based ads, and other features have been added. Following a test in North America and Europe, the ads will be made available to marketers in the Asia Pacific and Latin America in the following weeks.
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Advertising Services Market Competitor Analysis
The advertising services market is moderately competitive and consists of several significant players. Some of the players currently dominate the market in terms of market share. However, with the advancement in various advertisement services, new players are increasing their market presence, collaborating with international players to expand their business footprint across emerging economies.
- June 2022 - Walmart Connect, America's prominent retailer's closed-loop omnichannel media business that allows advertisers to reach Walmart shoppers on Walmart's site and app, across its physical locations, and across the web, announced a strategic partnership with Omnicom Media Group, the media services division of Omnicom Group Inc. The collaboration is the first of its kind between Walmart Connect and an agency holding firm.
- February 2022 - WPP entered an agreement with Instacart that provides clients early access to the online grocery platform's latest ad formats. WPP and Instacart co-developed an Instacart Ads agency certification program to ensure the agency workforce is up to snuff navigating the platform's app and products.
- September 2021 - Roku, Inc. announced the addition of the OneView advertising platform to its Canadian TV advertising offering. OneView offers advertisers a self-service platform for managing advertising across TV streaming, desktop, and mobile campaigns, leveraging TV identification data from the Roku streaming platform. Matterkind, an IPG affiliate company, was named Roku's first Canadian OneView campaign partner.
Advertising Services Market Top Players
WPP Plc (Ogilvy, Y&R, Grey)
The Interpublic Group of Companies Inc. (McCann Worldgroup, MullenLowe U.S.)
Omnicom Group Inc (BBDO, DDB Worldwide)
Lamar Advertising Company (Lamar Media Corp.)
Dentsu Aegis Network Ltd. (Dentsu Inc.)
*Disclaimer: Major Players sorted in no particular order
Advertising Services Market Recent Developments
- July 2022 - Havas Group announced the start of a new chapter in its history by simplifying its organization and deeper integration of its Global Creative and Health Networks to meet companies' ever-changing needs better. Following the launch of its Together strategy, which has significantly contributed to the Group's transformation and transformation into the most integrated company in the communications industry, Havas Group has led the market by putting meaningfulness at the heart of its ambition, a priority that advertisers now share, partners and also by peers.
- April 2022 - Omnicom Group Inc. has partnered with Firework, the world's largest provider of Livestream commerce and shoppable video platforms. Clients across all Omnicom agencies will access Firework's enterprise suite of proprietary short-form video and live streaming technologies, offering shoppable live streaming video directly to brand websites.
Advertising Services Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing Demand of the Social Media Engagement
4.2.2 Shifting Demand from Traditional to Digital Channels
4.3 Market Restraints
4.3.1 Operational Compatibility Due to Growing Brand Value
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Platform
5.2 By Channel of Service
5.2.1 Social Media Publishing
5.2.2 Radio Commercials
5.2.3 TV Ads
5.2.4 Direct Mail
5.2.5 Print Media
5.2.6 Other Types
5.3 By End-user Industry
5.3.3 Travel & Tourism
5.3.4 Media & Entertainment
5.3.5 Other End-user Industry
5.4.1 North America
5.4.4 Latin America
5.4.5 Middle East & Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Company Profiles
6.1.1 WPP Plc (Ogilvy, Y&R, Grey)
6.1.2 The Interpublic Group of Companies Inc. (McCann Worldgroup, MullenLowe U.S.)
6.1.3 Omnicom Group Inc (BBDO, DDB Worldwide)
6.1.4 Dentsu Aegis Network Ltd. (Dentsu Inc.)
6.1.5 MDC Partners Inc.
6.1.6 Lamar Advertising Company (Lamar Media Corp.)
6.1.7 Publicis Groupe SA
6.1.8 Wieden + Kennedy Inc
6.1.9 Havas SA
6.1.10 Droga5 LLC
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Advertising Services Market Research FAQs
What is the study period of this market?
The Advertising Services Market is studied from 2018 - 2028.
What is the growth rate of Advertising Services Market?
The Advertising Services Market is growing at a CAGR of 16% over the next 5 years.
Which region has highest growth rate in Advertising Services Market?
Asia Pacific is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Advertising Services Market?
North America holds highest share in 2021.
Who are the key players in Advertising Services Market?
WPP Plc (Ogilvy, Y&R, Grey), The Interpublic Group of Companies Inc. (McCann Worldgroup, MullenLowe U.S.), Omnicom Group Inc (BBDO, DDB Worldwide), Lamar Advertising Company (Lamar Media Corp.), Dentsu Aegis Network Ltd. (Dentsu Inc.) are the major companies operating in Advertising Services Market.
Advertising Services Industry Reports
In-depth industry statistics and market share insights of the Advertising Services sector for 2020, 2021, and 2022. The Advertising Services research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Advertising Services report PDF.