The world of advertising is undergoing a dramatic transformation. Traditional methods are taking a backseat as the global digital advertising market steps into the spotlight.
In 2018, digital advertising surpassed its traditional counterpart, driven by the growing popularity of online platforms and the ever-expanding number of internet users. Giant players like Alphabet, Facebook, Microsoft, Amazon, Tencent, Baidu, and ByteDance are calling the shots in this new era.
Video, banner, social media, and search advertising are experiencing explosive growth, with the pandemic only accelerating the trend. The United States is projected to lead the charge, while other mediums, such as TV and radio, are struggling to keep up.
Brace yourselves, because the global digital ad spend is predicted to skyrocket to a staggering $627 billion by 2023, with mobile advertising taking over half of that pie. Get ready to dive headfirst into a future where the digital realm reigns supreme.
Contents
- 1 global digital advertising market
- 2 1. Global Digital Advertising Surpasses Traditional Advertising In 2018
- 3 2. Offline To Online Behavior Shift Drives Growth In Digital Advertising Market
- 4 3. Doubling Of Internet Users In The Past Decade
- 5 4. Key Players In The Global Digital Advertising Market
- 6 5. Growth Trends In Video, Banner, Social Media, And Search Advertising Markets
- 7 6. Pandemic Accelerates Digital Adoption, Fueling Further Growth In Digital Advertising
- 8 7. Future Projections: Digital Advertising’s Dominance And TV Ad Revenue Growth
- 9 8. Challenges For Radio Ad Expenditure And Projected Growth In Digital Out-Of-Home Media Revenue
global digital advertising market
The global digital advertising market has experienced significant growth in recent years, surpassing traditional advertising in 2018. This growth has been driven by a shift in behavior from offline to online platforms, as more and more people access the internet.
The number of internet users has doubled over the past decade, leading to increased demand for digital advertising. Key players in this market include Alphabet, Meta Platforms (Facebook), Microsoft, Amazon, Tencent, Baidu, ByteDance, and others.
Among the various segments, video, banner, social media, and search advertising markets have experienced higher growth compared to classifieds. The COVID-19 pandemic has further accelerated digital adoption, resulting in additional growth in the digital advertising market.
It is expected that the global digital advertising market will account for nearly two-thirds of total expenditure in 2024, with the US leading the way. Additionally, TV ad revenues have surpassed pre-pandemic levels and are expected to continue growing, while radio ad expenditure has not yet recovered to pre-pandemic standards.
Furthermore, digital out-of-home media revenue is projected to experience over 40% growth between 2023 and 2027. Looking ahead, global digital ad spend is predicted to rise over 10% to $627 billion in 2023 and reach $835 billion by 2026.
Mobile ad expenditure is expected to contribute over half of these revenues, reaching $360 billion in 2023.
Key Points:
- Global digital advertising has grown significantly, surpassing traditional advertising in 2018.
- This growth is driven by the shift from offline to online platforms.
- The number of internet users has doubled, leading to increased demand for digital advertising.
- Key players in the market include Alphabet, Meta Platforms, Microsoft, Amazon, Tencent, Baidu, ByteDance, and others.
- Video, banner, social media, and search advertising markets have experienced higher growth compared to classifieds.
- The global digital advertising market is expected to account for nearly two-thirds of total expenditure in 2024, with the US leading the way.
Sources
https://www.statista.com/outlook/dmo/digital-advertising/worldwide
https://www.statista.com/topics/990/global-advertising-market/
https://www.statista.com/statistics/237974/online-advertising-spending-worldwide/
https://www.globenewswire.com/news-release/2021/10/19/2316414/0/en/Global-Digital-Advertising-and-Marketing-Market-to-Reach-786-2-Billion-by-2026.html
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1. Mobile advertising is a dominant force in the global digital advertising market, with projections showing it will contribute over half of the industry’s revenues by 2023.
2. The digital out-of-home media sector is projected to experience significant growth, with revenue expected to increase by over 40% between 2023 and 2027.
3. Despite the rise of digital advertising, TV ad revenues are surpassing pre-pandemic levels and are expected to continue growing, indicating that traditional advertising platforms still hold value.
4. Radio advertising expenditure has not yet recovered to pre-pandemic standards, suggesting that the industry may need to adapt and explore new digital advertising opportunities to regain its market share.
5. The global digital advertising market is predicted to experience substantial growth, with ad spend projected to rise over 10% to $627 billion in 2023 and reach $835 billion by 2026. This highlights the ongoing expansion and importance of digital advertising in the global economy.
1. Global Digital Advertising Surpasses Traditional Advertising In 2018
The global digital advertising market made a significant milestone in 2018 when it surpassed traditional advertising in terms of expenditure.
This shift marked a turning point in the advertising industry, as businesses recognized the power and potential of online platforms. Traditional advertising methods, such as print, TV, and radio, had long been the go-to choices for marketers.
However, with the rise of the internet and the increasing popularity of digital platforms, companies started reallocating their advertising budgets towards online channels.
This shift can be attributed to the numerous advantages offered by digital advertising. With online platforms, companies can target their advertisements to specific demographics, track consumer behavior and engagement, and measure the return on investment more accurately.
Furthermore, digital advertising allows for more interactive and engaging formats, such as videos, interactive banner ads, and social media campaigns. These factors contributed to the rapid growth of the global digital advertising market and its surpassing of the traditional advertising sector in 2018.
2. Offline To Online Behavior Shift Drives Growth In Digital Advertising Market
One of the key driving forces behind the exponential growth of the global digital advertising market is the significant shift in consumer behavior from offline to online platforms.
Over the past decade, the number of internet users worldwide has more than doubled, indicating the widespread adoption of digital technologies. People are increasingly relying on the internet for various purposes, including shopping, entertainment, socializing, and information gathering.
This change in behavior has naturally led businesses to shift their advertising efforts to where their target audience spends most of their time – online.
The convenience and accessibility of online platforms have made them the preferred choice for consumers. With just a few clicks, people can access a vast array of products and services, compare prices, read reviews, and make purchases.
As a result, businesses are focusing their marketing efforts on digital channels to reach and engage with their target customers effectively. This behavior shift has created a fertile ground for the growth of the global digital advertising market, as companies strive to capture the attention and interest of consumers in the online space.
3. Doubling Of Internet Users In The Past Decade
Over the past decade, the number of internet users worldwide has witnessed a staggering increase, more than doubling in size.
This growth can be attributed to several factors, including advancements in technology, improved affordability and accessibility of internet services, and the proliferation of smartphones and other connected devices. The expanding pool of internet users has had a profound impact on the global digital advertising market.
With more people gaining access to the internet, businesses now have a larger potential audience to target with their advertising campaigns. This expansion of the online population has created new opportunities for companies to reach consumers in previously untapped markets.
Additionally, the digital landscape has become more diverse, with users spanning different age groups, demographics, and geographic locations. This diversity presents unique challenges and opportunities for marketers to tailor their advertisements to specific segments of the online population.
The doubling of internet users over the past decade has undoubtedly contributed to the growth and evolution of the global digital advertising market.
4. Key Players In The Global Digital Advertising Market
The global digital advertising market is fiercely competitive, with several key players dominating the industry.
These companies have established themselves as leaders in the digital advertising space and continue to shape the market dynamics. Some of the prominent players include Alphabet, Meta Platforms, Microsoft, Amazon, Tencent, Baidu, and ByteDance.
These companies possess extensive resources, advanced technologies, and vast user bases that allow them to deliver highly targeted and effective advertising solutions.
Alphabet, the parent company of Google, has a significant presence in the digital advertising market through its advertising platform, Google Ads. Meta Platforms, previously known as Facebook, operates the largest social media platform in the world, enabling advertisers to reach billions of users.
Microsoft, with its search engine Bing and LinkedIn platform, offers alternative advertising options to businesses. Amazon, the global e-commerce giant, leverages its vast customer database to provide targeted advertising solutions.
Tencent and Baidu, based in China, dominate the digital advertising market in the region. Lastly, ByteDance, the parent company of popular social media app TikTok, has emerged as a major player in the global digital advertising space.
These key players continue to innovate and evolve their advertising platforms to stay at the forefront of the industry.
5. Growth Trends In Video, Banner, Social Media, And Search Advertising Markets
Various segments within the global digital advertising market have experienced different levels of growth, with some witnessing remarkable expansion.
Specifically, the video, banner, social media, and search advertising markets have emerged as the growth drivers within the industry.
Video advertising has become increasingly popular due to the engaging and dynamic nature of video content. With the rise of video-sharing platforms like YouTube and the incorporation of video ads on social media platforms, businesses have found success in using video as an advertising medium.
The growing popularity of streaming services and online video consumption has further fueled the growth of video advertising.
Banner advertising, despite being one of the oldest forms of digital advertising, continues to thrive. With the ability to display visually appealing and interactive ads on websites and mobile applications, banner advertising remains an effective way for companies to reach their target audience.
The integration of programmatic advertising technologies has also enhanced the targeting capabilities and efficiency of banner ads.
Social media platforms have become an integral part of people’s lives, providing a fertile ground for advertisers to connect with their target customers. Platforms like Facebook, Instagram, Twitter, and LinkedIn offer sophisticated advertising solutions that allow businesses to target specific demographics and interests.
The growth of social media advertising can be attributed to the active user base and the ability of these platforms to collect vast amounts of data on users’ behavior and preferences.
Search advertising, primarily driven by Google Ads, continues to be a dominant force in the digital advertising market. As search engines handle billions of queries daily, businesses leverage search advertising to capitalize on users’ intent and capture their attention at the point of searching for information or products.
The growth of e-commerce and the increasing reliance on search engines for product research have contributed to the expansion of search advertising.
6. Pandemic Accelerates Digital Adoption, Fueling Further Growth In Digital Advertising
The COVID-19 pandemic has had a profound impact on the global digital advertising market.
As people worldwide faced lockdowns and movement restrictions, they turned to digital platforms for work, entertainment, and communication. This increased reliance on online channels accelerated the adoption of digital technologies, leading to a surge in digital advertising.
With physical stores closed and traditional advertising channels limited in reach, businesses diverted their advertising budgets towards digital platforms. The pandemic served as a catalyst for digital transformation across industries, forcing companies to embrace online strategies to survive and thrive.
This shift created a massive opportunity for the digital advertising market to expand and cater to the growing demand for online advertising solutions.
7. Future Projections: Digital Advertising’s Dominance And TV Ad Revenue Growth
The global digital advertising market is poised to continue its dominance and is expected to account for nearly two-thirds of total advertising expenditure by 2024.
The United States is forecasted to lead in terms of digital ad spending, reflecting the country’s advanced digital infrastructure and mature advertising ecosystem.
While traditional TV advertising faced disruptions during the pandemic, TV ad revenues have started to rebound and are expected to continue growing. The resilience of TV as a mass media channel and the integration of digital capabilities into TV advertising have contributed to its recovery.
Advertisers are leveraging data-driven targeting, programmatic buying, and addressable TV advertising to reach audiences effectively.
On the other hand, radio ad expenditure has not yet recovered to pre-pandemic levels. The shift in consumer behavior towards online platforms and the decline in commuting and in-car listening have posed challenges for radio advertising.
However, radio broadcasters are exploring new strategies, such as podcast advertising and digital audio ads, to capture new revenue streams and regain their market share.
Additionally, the digital out-of-home media market is projected to grow over 40% between 2023 and 2027. With advancements in digital signage technology and the ability to deliver targeted and dynamic content, out-of-home advertising is becoming more interactive and engaging.
This growth is driven by the increased adoption of digital displays in public spaces, transportation hubs, and retail environments.
8. Challenges For Radio Ad Expenditure And Projected Growth In Digital Out-Of-Home Media Revenue
Radio ad expenditure has faced significant challenges in recent years, exacerbated by the COVID-19 pandemic.
The decline in commuting and the shift in consumer behavior towards online music streaming and podcasts have impacted the reach and effectiveness of radio advertising. As a result, advertisers have reduced their expenditure on radio ads, leading to a slower recovery compared to other advertising mediums.
On the other hand, the global digital out-of-home media market is projected to experience substantial growth in the coming years. Digital signage and displays offer new opportunities for advertisers to engage with consumers in public spaces.
The ability to deliver location-specific, targeted content and interactive experiences has made out-of-home advertising more appealing to brands. With advancements in technology and increasing adoption of digital displays, the digital out-of-home media market is expected to witness significant revenue growth.
In conclusion, the global digital advertising market has witnessed tremendous growth and surpassed traditional advertising in 2018. The shift in consumer behavior from offline to online platforms, coupled with the doubling of internet users over the past decade, has been instrumental in driving this growth.
Key players in the industry, including Alphabet, Meta Platforms, Microsoft, Amazon, Tencent, Baidu, and ByteDance, continue to shape the market dynamics. Growth trends in video, banner, social media, and search advertising markets have propelled the expansion of the digital advertising industry.
The COVID-19 pandemic has accelerated digital adoption, further fueling the growth of digital advertising. With projections of digital advertising’s dominance and TV ad revenue growth, alongside challenges for radio ad expenditure and projected growth in digital out-of-home media revenue, the future of the global digital advertising market is both promising and dynamic.