Market Trends of Advertising Services Industry
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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