Online Advertising Market Size and Share
Online Advertising Market Analysis by Mordor Intelligence
The online advertising market size stands at USD 294.28 billion in 2025 and is projected to reach USD 487.32 billion by 2030, reflecting a 10.61% compound annual growth rate (CAGR) over 2025-2030. The online advertising market continues to monetise emerging touchpoints despite stricter privacy rules and uneven macroeconomic signals. Advertisers keep digital budgets intact because impression-level reporting clarifies working-capital deployment, while publishers rebalance inventory toward higher-yield short-form video and commerce-linked display that sustain revenue even when raw impressions stabilise. Growth also benefits from a rising cohort of medium-sized brands that buy programmatically through self-serve tools, spreading spend more evenly rather than relying on a small group of multinationals. Simultaneously, regional diversification secures the online advertising market because incremental outlay is coming from Latin America, the Middle East, and Africa as smartphone adoption rises, reducing exposure to single-region slowdowns.
Key Report Takeaways
- By advertising format, video remains the fastest-expanding category, advancing at a mid-teen CAGR and drawing budgets toward immersive, transaction-ready units.
- By platform, mobile commanded 72% of the online advertising market share in 2025, while wearables produced the highest projected CAGR through 2030 as glanceable units scale.
- By end-user vertical, retail and e-commerce captured the largest revenue slice, whereas healthcare and pharmaceutical advertising is forecast to expand at roughly 14% CAGR to 2030.
- By geography, Asia–Pacific held about 34% share of the online advertising market size in 2025, while the Middle East and Africa records the fastest double-digit growth rate through 2030.
Global Online Advertising Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Retail media networks monetisation | +2.1% | North America, Europe, Asia–Pacific | Short term (≤ 2 years) |
AI-generated dynamic creative optimisation | +1.8% | Global | Short term (≤ 2 years) |
5G-enabled immersive video | +1.2% | South-East Asia, Middle East | Long term (≥ 4 years) |
Commerce-search integration in super-apps | +0.9% | China, ASEAN | Short term (≤ 2 years) |
Source: Mordor Intelligence
Retail media networks accelerate closed-loop measurement
Retailers wielding authenticated transaction data now operate in-house ad networks that let consumer-goods brands verify sales lift directly, raising confidence in the online advertising market. A 2024 securities filing by the largest e-commerce marketplace showed on-platform ad spend climbing faster than gross merchandise volume, signalling a strong appetite for data-rich placements [1]Amazon .com Inc., “Form 10-K,” sec.gov. Mid-tier U.S. grocery chains followed with media networks that delivered double-digit return-on-ad-spend gains versus open-web banners. As attribution occurs inside the same checkout environment, marketers recycle budget rapidly toward top-performing SKUs, and loyalty-centric pharmacy chains plan similar sponsored search shelves in 2025, broadening the model.
AI-generated dynamic creative optimisation compresses production cycles
Major platforms deployed real-time rendering engines in 2024, enabling advertisers to upload a core asset library that algorithms remix according to viewer attributes. A European flag-carrier airline reported measurable booking-intent gains within four weeks of personalised creatives, then applied the tactic to upsell units such as seat upgrades. In 2025 a consumer-electronics brand stated that AI-based video variants multiplied creative output fivefold while matching brand-safety scores. As creative volume ceases to constrain testing, extra response signals feed platform recommendations, improving relevance without new data collection.
5G unlocks immersive video across South-East Asia
Operators in Indonesia, Thailand, and Viet Nam completed dense 5G roll-outs through 2024, elevating median download speeds enough for multi-angle live streams. Telkomsel’s Hyper 5G network logged traffic peaks quadruple those of 4G during festivals. Esports broadcasters introduced camera-toggle ad units, and early 2025 surveys showed stronger recall among 18-24-year-olds. Capacity gains also support volumetric product demos that packaged-goods marketers plan for the next Ramadan, illustrating how bandwidth fuels the online advertising market.
Commerce-search convergence inside super-apps fuels in-app placements
Super-apps in China and Southeast Asia now blend social, payment, and fulfilment. A South-East Asian super-app generated CNY 116 billion (USD 16.3 billion) gross merchandise value in its first year, with two-thirds of sales triggered by search-led discovery inside content feeds [2]ByteDance Ltd., “E-commerce Division Update,” bytedance.com. Advertisers gain exposure at the moment intent forms, and because browsing, payment, and logistics share a login, conversion friction falls, raising bid density across premium inventory.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Third-party-cookie deprecation | -1.4% | Europe first, global later | Short term (≤ 2 years) |
Digital-services taxes | -0.8% | UK, France, potential expansion | Long term (≥ 4 years) |
Source: Mordor Intelligence
European signal loss from cookie deprecation forces contextual renaissance
Google Sandbox tests in 2024 indicated revenue loss when display inventory lacked third-party cookies [4]Google LLC, “Privacy Sandbox Results Blog,” blog.google. A German publisher expanded to 15,000 contextual segments and recovered half the lost CPM by Q1 2025. Advertisers pivot to semantic alignment, reviving premium editorial environments and partly reversing earlier movement toward user-generated content.
Digital-services taxes pressure platform and advertiser margins
The United Kingdom and France maintained 2% turnover taxes in 2024. Platforms passed the charge through as invoice surcharges ads.google.com. Higher effective CPMs squeezed margins during Q4 retail peaks, and some buyers diverted spend to untaxed markets with similar audiences, illustrating how fiscal policy can swiftly reshape the online advertising market.
Segment Analysis
By Advertising Format: Video consolidates growth leadership
Video advertising currently logs the fastest growth within the online advertising market size, climbing at a mid-teen CAGR while other formats mature. Short-form vertical clips and live-stream shopping overlays shorten the path from impression to purchase in one viewing session. Streaming sports rights holders added picture-in-picture wagering prompts during the 2024 playoffs, and dashboards showed extended dwell times among core fans. As brands observe higher completion rates versus skippable formats, spend shifts toward inventory that justifies premium pricing. The online advertising market benefits because publishers can package fewer but more valuable impressions. Display banners, though steadier, evolve into programmatic digital-out-of-home screens that react to weather or commuter flows, maintaining relevance outside desktop environments.
Search advertising protects its commanding place by converting intent signals into performance, yet its growth curve flattens as query volume decelerates. Engines now embed generative overviews that mix organic answers with sponsored placements, and click-path studies in early 2025 showed deeper scrolling, effectively expanding paid real estate. This adjustment keeps search a cash generator within the online advertising market, even as display and social formats innovate. Meanwhile, contextual display and out-of-home linkages prove that banner evolution can secure new budgets rather than cannibalise existing ones.
Note: Segment shares of all individual segments available upon report purchase
By Platform: Mobile dominance widens while wearables emerge
Mobile remains the backbone of the online advertising market, holding a 72% share in 2025. The online advertising market size connected to mobile is projected to expand with augmented reality try-ons inside beauty apps that drive real-time product-page visits. 5G removes latency barriers, allowing volumetric product demonstrations that were formerly desktop-bound. Wearables represent a nascent but fast-growing surface: a smartwatch brand introduced glanceable ad units in 2024 that deliver location-tethered offers such as ten-minute coffee coupons, achieving redemption rates an order of magnitude above email.
Desktop and laptop screens retain importance for high-consideration purchases and B2B account-based marketing. A 2024 software-as-a-service prospecting campaign combined white-paper gating with connected-TV retargeting, illustrating cross-device orchestration. The synergy between large-screen research and small-screen transactions strengthens the online advertising market by keeping identity solutions high on product roadmaps despite cookie attrition.
Note: Segment shares of all individual segments available upon report purchase
By End-User Vertical: Healthcare surges while retail holds mass scale
Healthcare and pharmaceutical marketers produce the steepest mid-teen CAGR across the online advertising industry. Generative AI chatbots on patient-support sites began offering sponsored therapy references in 2024, elevating lead quality. A 2025 vaccine manufacturer launched a symptom checker with sponsor call-outs that guide eligible adults to partner pharmacies, merging education with local inventory discovery. This closed-loop verification lets the online advertising market command premium CPMs where outcomes are tangible.
Retail and e-commerce continue to capture the largest slice of the online advertising market size, yet penetration nears saturation in leading economies. To maintain velocity, merchants exploit store-level audience extension: a U.K. grocery chain announced in 2025 that its loyalty app would syndicate anonymised cohorts to third-party publishers, feeding off-site re-targeting. Automotive advertisers, for their part, invest in mixed-reality configurators that generate qualified dealer leads before physical inventory arrives. Financial services brands concentrate on pinpointing life events such as mortgage renewal, demonstrating that regulatory-sensitive sectors still find personalised openings within a privacy-compliant online advertising market.
Geography Analysis
Asia–Pacific commands roughly 34% of global spend, underpinned by mobile-first populations and super-app ecosystems. Live-commerce festivals in China register billions of micro-interactions that convert inside the same short-video clip, reinforcing the region’s primacy in the online advertising market. India’s extension of the Unified Payments Interface to feature phones promises addressable advertising in rural districts previously out of reach. Indonesian and Malaysian telcos are rolling out tiered 5G packages, creating low-latency inventory that sustains growth without lowering price floors, positioning the region for incremental share.
North America preserves the highest revenue per user, benefitting from sophisticated auction tooling and a mature hybrid-TV ecosystem. Streaming households now form the majority of under-35 viewers, and a ratings-agency update in early 2025 merged linear and digital reach on a single currency line, simplifying cross-screen buys. Retailers extend in-store digital displays that double as demand-side platform endpoints, letting advertisers geofence campaigns around specific store clusters and then reconcile sales via loyalty IDs. This fusion underpins premium CPMs and keeps North America central to the online advertising market.
The Middle East and Africa, while starting from a lower base, shows sustained double-digit CAGR as youthful demographics combine with expanding under-sea fibre. Government-backed smart-city projects integrate programmatic billboards that receive dynamic creative from central ad exchanges, creating an addressable surface unique to the region. Content creators monetise in Arabic, English, and French, and platforms report that multilingual targeting lifts relevance scores. Tourism recovery further boosts hospitality spend; Gulf airlines ran city-specific retargeting flights in early 2025 that filled shoulder-season routes, demonstrating cross-border scalability for the online advertising market.

Competitive Landscape
The online advertising market is still dominated by ecosystems that own authenticated sign-ins, yet competitive pressure rises as niche identity graphs form. Alphabet and Meta remain essential for reach, but retail media networks, gaming marketplaces, and streaming consortia fragment budget distribution. A 2024 joint-venture among leading streamers launched a shared ad-tech stack that pools inventory across apps; media planners quickly rerouted household-targeted spend to the bundle for frequency efficiency.
Data ownership has become a primary differentiator. Platforms that combine payment tokens or loyalty IDs demonstrate incrementality proofs unavailable to brokers that rely on cookies. A 2025 European airline alliance announced a federated marketplace based on frequent-flyer IDs, opening a premium travel cohort to luxury advertisers without violating data-residency laws. Supply-side vendors pivot toward interoperability, certifying clean-room connectivity and viewability to stay indispensable inside compressed value chains.
Artificial intelligence widens performance gaps. Google began auto-assembling shopping ads inside AI-generated overviews in 2024, and internal beta data indicated higher click propensity on listings surfaced inside natural-language answers [3]Google LLC, “Ads in AI Overview Product Update,” developers.google.com. Competitors invest in adaptive pricing engines that raise or lower reserves based on scroll velocity. Marketers, wary of opaque optimisation, embed differential-privacy checks inside tagging frameworks to validate platform attribution, underscoring the arms-length stance that sophisticated buyers now adopt in the online advertising market.
Online Advertising Industry Leaders
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Google LLC
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Meta Platforms Inc.
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Amazon.com Inc. (Amazon Ads)
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ByteDance Ltd. (TikTok)
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Microsoft Corp. (LinkedIn, Bing Ads)
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- May 2025: Google rolled out visual brand-profile ads that combine lifestyle imagery with product feeds, giving merchants richer storytelling inside Shopping placements.
- March 2025: Meta updated its terms of service to restrict sensitive health data collection through Pixel integrations, requiring hospitals to revise consent flows.
- February 2025: WebMD Ignite launched a programmatic platform based on medical-content intent signals, promising condition-specific precision.
- January 2025: TikTok Shop and Tokopedia announced cross-listing of inventory, unlocking shoppable ads tied to live marketplace stock levels.
Global Online Advertising Market Report Scope
Online advertising is a marketing strategy adopted by various organizations, which involves using the internet as a medium to obtain website traffic, target and deliver marketing messages to the right customers. The scope of the study is currently focused on global Online advertising. The study tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry. The study also tracks the impact of COVID-19 on the overall Online Advertising Market and its performance.
The Online Advertising Market is Segmented by Advertising Format (Social Media, Search Engine, Video, Email, others), by Platform (Mobile, Desktop and Laptop, others), by End-User Vertical (Automotive, Retail, Healthcare, BFSI, Telecom, others), by Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
By Advertising Format | Social Media | ||
Search Engine | |||
Video | |||
Other Advertising Formats | |||
By Platform | Mobile | ||
Desktop and Laptop | |||
Other Platforms | |||
By End-user Vertical | Automotive | ||
Retail and E-commerce | |||
Healthcare and Pharma | |||
BFSI | |||
Telecom | |||
Other Verticals | |||
By Geography | North America | United States | |
Canada | |||
Mexico | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Spain | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
South Korea | |||
India | |||
Australia | |||
New Zealand | |||
Rest of Asia-Pacific | |||
Middle East and Africa | United Arab Emirates | ||
Saudi Arabia | |||
South Africa | |||
Rest of Middle East and Africa |
Social Media |
Search Engine |
Video |
Other Advertising Formats |
Mobile |
Desktop and Laptop |
Other Platforms |
Automotive |
Retail and E-commerce |
Healthcare and Pharma |
BFSI |
Telecom |
Other Verticals |
North America | United States |
Canada | |
Mexico | |
South America | Brazil |
Argentina | |
Rest of South America | |
Europe | Germany |
United Kingdom | |
France | |
Italy | |
Spain | |
Rest of Europe | |
Asia-Pacific | China |
Japan | |
South Korea | |
India | |
Australia | |
New Zealand | |
Rest of Asia-Pacific | |
Middle East and Africa | United Arab Emirates |
Saudi Arabia | |
South Africa | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
How large will the online advertising market be by 2030?
The online advertising market size is projected to reach USD 487.32 billion by 2030, maintaining a 10.61% CAGR from 2025.
Which advertising format is expanding fastest?
Short-form and live-stream video lead growth, supported by commerce overlays that compress the path from viewing to purchase.
Why are retail media networks attracting budgets?
Retailers hold authenticated purchase histories that let brands connect impressions directly to sales, enabling closed-loop attribution impossible on the open web.
How is 5G influencing creative strategy?
Higher bandwidth supports immersive multi-angle video and augmented-reality demos, driving engagement levels that justify premium rates.
What happens to targeting after cookie deprecation?
Brands will rely more on first-party data alliances and contextual models; early clean-room deployments already safeguard revenue when cookies disappear.
Which region offers the strongest entry opportunity?
The Middle East and Africa deliver the fastest revenue growth due to young, mobile-centric populations and expanding fibre capacity.