Advertising Services Market Size

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.