Online Advertising Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Online Advertising Market was valued at USD 304.0 billion in 2019 and is expected to reach USD 982.82 billion by 2025, at a CAGR of 21.6% over the forecast period 2020 - 2025. The increasing technological advancements coupled with increasing digital spending by enterprises is expected to drive the online advertisement market over the forecast period.

• Over the years, technological developments regarding the internet, combined with its increasing commercial use and the rapidly growing number of internet users worldwide, have not only shaped the evolution of online advertising and produced different forms of digital advertising, but have also given rise to new advertising business models and new market levels and players.
• Additionally, for mobile devices, there are different types of advertisements, including click to download, click to call, image text, and banner ads. Moreover, the consumers are widely preferring smartphone devices over laptops or desktops, owing to convenience and portability. Similar operations can be performed on the former, owing to which mobile platforms are expected to grow lucratively.
• Moreover, 6-second ad is increasingly gaining popularity on various social media platforms. Short-form, six-second ads on TV capture 8% to 11% more attention per second than longer ads, according to new research by the Advertising Research Foundation.
• The COVID-19 pandemic is having a big impact on various industries, and digital advertising is not an exception. With the COVID-19 pandemic, business owners are assessing their marketing efforts and wondering whether if it is the best time to run online ads.For instance, According to a recent report by the Interactive Advertising Bureau, almost 24% of media buyers, planners, and brands paused ad spending until Q2 2020. While nearly 46% indicated they would adjust their ad spending across the same period. As most end users are now operating online with digital gadgets and uncertainity of pandemmic to end, many organization are planning to shift their advertizing investment on digital platform.

Scope of the Report

Online advertising is a marketing strategy adopted by various organizations, which involves the use of the internet as a medium to obtain website traffic, and target and deliver marketing messages to the right customers.

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Key Market Trends

Video Format to Witness High Growth

• With the introduction of new platforms and formats, the possibilities of video marketing are expanding. While spending on traditional television advertising is declining, digital video market spending is increasing. According to the Interactive Advertising Bureau (IAB), most of the expenses are allocated to mobile and desktop advertising, amounting to almost two-thirds of the total advertising budget for video ads.
• Wyzowl’s study in the field of video marketing shows that digital video is one of the main trends of 2020. Moreover, video ads capture the attention of the audience better than any other type of ad. According to the study conducted by HubSpot in 2017, 54% of people wanted to see more video content from a brand they support. Those people are also 85% more likely to purchase after viewing a product video.
• According to Videology, a video advertising platform, it was found that 46% of the digital video ads viewed within the first quarter of 2018 were in the length of 15 seconds. Additionally, the share of the cross screen in the number of digital video ad campaigns in the United States in the 1st quarter of 2018 was 98%.
• Moreover, According to FreeWheel, A Comcast Company, a provider of comprehensive ad platforms, Entertainment and Media, and Consumer packaged goods accounted for 19% and 15% of video ad views, respectively. in the Q42018.

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