Digital Advertisement Spending Market size to grow by USD 523.45 billion from 2021 to 2026, Driven by the decline in offline ad spending - Technavio

NEW YORK, April 4, 2023 /PRNewswire/ -- The global digital advertisement spending market size is estimated to grow by USD 523.45 billion from 2021 to 2026, according to Technavio. The market is estimated to grow at a CAGR of 17.47% during the forecast period. Factors such as the decline in offline ad spending, evolving modern consumer demographics and demands, and growing use of online classified ad platforms drive the market growth, although challenges associated with OTT advertising may impede the market growth. For more insights on the forecast market size (2021 to 2026) - Request a sample report

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Digital Advertisement Spending Market - Segmentation Assessment Segment Overview
Technavio has segmented the market based on type (display ad, search ad, and others) and geography (North America, APAC, Europe, South America, and Middle East and Africa). 

• The market share growth by the display ad segment will be significant during the forecast period. Display ad refers to the broadcasting of an ad by text, video, or audio on a website or application. It helps advertisers to measure website traffic, as they have to pay for promotions displayed alongside the content on the page. Digital ad targets directly business-to-business (B2B) and business-to-consumer (B2C) customers and prospective customers online by matching their internet protocol (IP) address to their physical address. Direct IP targeting helps to display ads to a specific business or household as well as in a given location. Hence, the global digital advertisement spending market is expected to grow during the forecast period, because it helps advertisers to increase conversion per digital ad and engages a mass audience. 

Geography Overview
By geography, the global digital advertisement spending market is segmented into North America, APAC, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global digital advertisement spending market.

• North America?is estimated to account for?39% of the growth of the market. The US is the key market in the region for the digital advertisement spending market. Market growth in North America region will be slower?than the growth of the market in other regions. The growing penetration of smartphones and reliable broadband infrastructure of end-users facilitates the digital advertisement spending market growth in the region over the forecast period. Additionally, mobile ad spending is one of the major drivers of the regional market.

Insights on the market contribution of various segments including country and region wise, and forecast market size (2022 to 2026) - Download a Sample Report

Vendor Analysis

The global digital advertisement spending market is highly competitive and has the presence of prominent players. Some of the major players in the market are as follows:

Alphabet Inc., Amazon.com Inc., Baidu Inc., Dentsu Group Inc., Epsilon Data Management LLC, InterActiveCorp, LinkedIn Corp., Meta Platforms Inc., Microsoft Corp., Sirius XM Holdings Inc., SXM Media, TradeDoubler AB, Verizon Communications Inc., Xaxis LLC, and Yelp Inc.

Vendor Offerings

• Alphabet Inc. - The company offers advertising services such as sales of apps, in-app purchases, digital content products, and hardware, under the portfolio google services.
• Amazon.com Inc. - The company offers advertisements to audiences where they shop, read, listen, watch, and play through ad experiences both on and off Amazon. The company monitors tap signals to shape customer advertising campaigns and measure results.
• Baidu Inc. - The company offers paid search advertising management for global business.
• For insights on vendors and their offerings- Request a Sample Report!

Digital Advertisement Spending Market – Market Dynamics Key factor driving market growth

The decline in offline ad spending is one of the major drivers supporting the growth of digital advertisement spending market. Continuous decline in Ad spending in traditional channels, like radio, have been witnessed since past a few years. Due to COVID-19 pandemic and induced lockdowns, fewer people commuted to work, resulting in reduced daily listenership of radio, which consequently reduced spending on audio ads. For example, in India, radio ad volume declined in Q1 2020 by 34% compared to the same period in the previous year. Also, in April 2020, the number of brands advertising on radio in the country declined to 650 compared to 2000 in March 2020. Hence, the decline in offline ad spending positively impacts the growth of the digital advertisement spending market during the forecast period.

Leading trends influencing the market 

The evolution of programmatic advertisement buying is one of the major digital advertisement spending market trends contributing to the market growth. With the rise in the number of consumer metrics available for the advertisers to target their audience, real-time bidding (RTB) is the tool enhancing the subscriber base for advertisers. In the traditional method of buying a digital advertisement request for proposals, quotes, and tenders, human negotiation was included but programmatic advertisement buying uses algorithms for purchasing display space. Because of the optimized and efficient process in programmatic advertisement buying, some countries are investing in this solution for better and more efficient operations for selling advertisements. As programmatic advertisement buying helps in optimizing the buying process of digital advertisements, it may lead to an increase in the adoption of digital advertisements during the forecast period. Hence, such factors fuel the digital ad spending market growth.

Major challenges hindering the market growth

Challenges associated with OTT advertising is a major factor hindering the digital advertisement spending market growth. OTT platforms fail to report the channel a particular ad ran on and the OTT campaign measurement metrics become superficial due to the obscurity of targeting and attribution. Owing to the drawbacks of the OTT format, ad agencies prefer to choose direct advertising over a programmatic approach. As more and more OTT platforms emerge in the market and gain an growing user base, the tracking of fraud becomes a challenge. Hence, challenges associated with OTT advertising can negatively impact the growth of the global digital advertisement spending market during the forecast period.

Insights on Market Drivers, trends, & Challenges during forecast period(2022 to 2026)- Request a sample report!

What are the key data covered in this Digital Advertisement Spending Market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the digital advertisement spending market between 2022 and 2026
• Precise estimation of the size of the digital advertisement spending market and its contribution to the market with a focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the digital advertisement spending market across North America, APAC, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of digital advertisement spending market vendors

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Related Reports:

The online ad spending market size is expected to increase by USD 241.99 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 10.98%. The report extensively covers online ad spending market segmentation by platform (mobile devices and desktops) and geography (North America, APAC, Europe, South America, and Middle East and Africa). The decline in offline ad spending is one of the key drivers supporting the online ad spending market growth.

The Ad spending market size is expected to increase by USD 342.32 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 8.75%. This report extensively covers Ad spending market segmentation by type (digital, TV, OOH, and print) and geography (North America, APAC, Europe, South America, and Middle East and Africa). One of the key factors driving the global Ad spending market growth is the increase in the number of Ad-exchange platforms.

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Table of Contents

1 Executive Summary

• 1.1 Market overview
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Type
• Exhibit 06: Executive Summary – Chart on Incremental Growth
• Exhibit 07: Executive Summary – Data Table on Incremental Growth
• Exhibit 08: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem
• Exhibit 09: Parent market
• Exhibit 10: Market Characteristics

3 Market Sizing

• 3.1 Market definition
• Exhibit 11: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 12: Market segments

• 3.3 Market size 2021

• 3.4 Market outlook: Forecast for 2021-2026 
• Exhibit 13: Chart on Global - Market size and forecast 2021-2026 ($ billion)
• Exhibit 14: Data Table on Global - Market size and forecast 2021-2026 ($ billion)
• Exhibit 15: Chart on Global Market: Year-over-year growth 2021-2026 (%)
• Exhibit 16: Data Table on Global Market: Year-over-year growth 2021-2026 (%)

4 Five Forces Analysis

• 4.1 Five forces summary
• Exhibit 17: Five forces analysis - Comparison between2021 and 2026

• 4.2 Bargaining power of buyers 
• Exhibit 18: Chart on Bargaining power of buyers – Impact of key factors 2021 and 2026

• 4.3 Bargaining power of suppliers 
• Exhibit 19: Bargaining power of suppliers – Impact of key factors in 2021 and 2026

• 4.4 Threat of new entrants 
• Exhibit 20: Threat of new entrants – Impact of key factors in 2021 and 2026

• 4.5 Threat of substitutes 
• Exhibit 21: Threat of substitutes – Impact of key factors in 2021 and 2026

• 4.6 Threat of rivalry
• Exhibit 22: Threat of rivalry – Impact of key factors in 2021 and 2026

• 4.7 Market condition
• Exhibit 23: Chart on Market condition - Five forces 2021 and 2026

5 Market Segmentation by Type

• 5.1 Market segments
• Exhibit 24: Chart on Type - Market share 2021-2026 (%)
• Exhibit 25: Data Table on Type - Market share 2021-2026 (%)

• 5.2 Comparison by Type
• Exhibit 26: Chart on Comparison by Type
• Exhibit 27: Data Table on Comparison by Type

• 5.3 Display ad - Market size and forecast 2021-2026 
• Exhibit 28: Chart on Display ad - Market size and forecast 2021-2026 ($ billion)
• Exhibit 29: Data Table on Display ad - Market size and forecast 2021-2026 ($ billion)
• Exhibit 30: Chart on Display ad - Year-over-year growth 2021-2026 (%)
• Exhibit 31: Data Table on Display ad - Year-over-year growth 2021-2026 (%)

• 5.4 Search ad - Market size and forecast 2021-2026 
• Exhibit 32: Chart on Search ad - Market size and forecast 2021-2026 ($ billion)
• Exhibit 33: Data Table on Search ad - Market size and forecast 2021-2026 ($ billion)
• Exhibit 34: Chart on Search ad - Year-over-year growth 2021-2026 (%)
• Exhibit 35: Data Table on Search ad - Year-over-year growth 2021-2026 (%)

• 5.5 Others - Market size and forecast 2021-2026 
• Exhibit 36: Chart on Others - Market size and forecast 2021-2026 ($ billion)
• Exhibit 37: Data Table on Others - Market size and forecast 2021-2026 ($ billion)
• Exhibit 38: Chart on Others - Year-over-year growth 2021-2026 (%)
• Exhibit 39: Data Table on Others - Year-over-year growth 2021-2026 (%)

• 5.6 Market opportunity by Type 
• Exhibit 40: Market opportunity by Type ($ billion)

6 Customer Landscape

• 6.1 Customer landscape overview 
• Exhibit 41: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

7 Geographic Landscape

• 7.1 Geographic segmentation 
• Exhibit 42: Chart on Market share by geography 2021-2026 (%)
• Exhibit 43: Data Table on Market share by geography 2021-2026 (%)

• 7.2 Geographic comparison 
• Exhibit 44: Chart on Geographic comparison
• Exhibit 45: Data Table on Geographic comparison

• 7.3 North America - Market size and forecast 2021-2026 
• Exhibit 46: Chart on North America - Market size and forecast 2021-2026 ($ billion)
• Exhibit 47: Data Table on North America - Market size and forecast 2021-2026 ($ billion)
• Exhibit 48: Chart on North America - Year-over-year growth 2021-2026 (%)
• Exhibit 49: Data Table on North America - Year-over-year growth 2021-2026 (%)

• 7.4 APAC - Market size and forecast 2021-2026 
• Exhibit 50: Chart on APAC - Market size and forecast 2021-2026 ($ billion)
• Exhibit 51: Data Table on APAC - Market size and forecast 2021-2026 ($ billion)
• Exhibit 52: Chart on APAC - Year-over-year growth 2021-2026 (%)
• Exhibit 53: Data Table on APAC - Year-over-year growth 2021-2026 (%)

• 7.5 Europe - Market size and forecast 2021-2026 
• Exhibit 54: Chart on Europe - Market size and forecast 2021-2026 ($ billion)
• Exhibit 55: Data Table on Europe - Market size and forecast 2021-2026 ($ billion)
• Exhibit 56: Chart on Europe - Year-over-year growth 2021-2026 (%)
• Exhibit 57: Data Table on Europe - Year-over-year growth 2021-2026 (%)

• 7.6 South America - Market size and forecast 2021-2026 
• Exhibit 58: Chart on South America - Market size and forecast 2021-2026 ($ billion)
• Exhibit 59: Data Table on South America - Market size and forecast 2021-2026 ($ billion)
• Exhibit 60: Chart on South America - Year-over-year growth 2021-2026 (%)
• Exhibit 61: Data Table on South America - Year-over-year growth 2021-2026 (%)

• 7.7 Middle East and Africa - Market size and forecast 2021-2026 
• Exhibit 62: Chart on Middle East and Africa - Market size and forecast 2021-2026 ($ billion)
• Exhibit 63: Data Table on Middle East and Africa - Market size and forecast 2021-2026 ($ billion)
• Exhibit 64: Chart on Middle East and Africa - Year-over-year growth 2021-2026 (%)
• Exhibit 65: Data Table on Middle East and Africa - Year-over-year growth 2021-2026 (%)

• 7.8 US - Market size and forecast 2021-2026 
• Exhibit 66: Chart on US - Market size and forecast 2021-2026 ($ billion)
• Exhibit 67: Data Table on US - Market size and forecast 2021-2026 ($ billion)
• Exhibit 68: Chart on US - Year-over-year growth 2021-2026 (%)
• Exhibit 69: Data Table on US - Year-over-year growth 2021-2026 (%)

• 7.9 China - Market size and forecast 2021-2026 
• Exhibit 70: Chart on China - Market size and forecast 2021-2026 ($ billion)
• Exhibit 71: Data Table on China - Market size and forecast 2021-2026 ($ billion)
• Exhibit 72: Chart on China - Year-over-year growth 2021-2026 (%)
• Exhibit 73: Data Table on China - Year-over-year growth 2021-2026 (%)

• 7.10 UK - Market size and forecast 2021-2026 
• Exhibit 74: Chart on UK - Market size and forecast 2021-2026 ($ billion)
• Exhibit 75: Data Table on UK - Market size and forecast 2021-2026 ($ billion)
• Exhibit 76: Chart on UK - Year-over-year growth 2021-2026 (%)
• Exhibit 77: Data Table on UK - Year-over-year growth 2021-2026 (%)

• 7.11 Germany - Market size and forecast 2021-2026 
• Exhibit 78: Chart on Germany - Market size and forecast 2021-2026 ($ billion)
• Exhibit 79: Data Table on Germany - Market size and forecast 2021-2026 ($ billion)
• Exhibit 80: Chart on Germany - Year-over-year growth 2021-2026 (%)
• Exhibit 81: Data Table on Germany - Year-over-year growth 2021-2026 (%)

• 7.12 Japan - Market size and forecast 2021-2026 
• Exhibit 82: Chart on Japan - Market size and forecast 2021-2026 ($ billion)
• Exhibit 83: Data Table on Japan - Market size and forecast 2021-2026 ($ billion)
• Exhibit 84: Chart on Japan - Year-over-year growth 2021-2026 (%)
• Exhibit 85: Data Table on Japan - Year-over-year growth 2021-2026 (%)

• 7.13 Market opportunity by geography 
• Exhibit 86: Market opportunity by geography ($ billion)

8 Drivers, Challenges, and Trends

• 8.1 Market drivers

• 8.2 Market challenges

• 8.3 Impact of drivers and challenges 
• Exhibit 87: Impact of drivers and challenges in 2021 and 2026

• 8.4 Market trends

9 Vendor Landscape

• 9.1 Overview

• 9.2 Vendor landscape
• Exhibit 88: Overview on Criticality of inputs and Factors of differentiation

• 9.3 Landscape disruption
• Exhibit 89: Overview on factors of disruption

• 9.4 Industry risks
• Exhibit 90: Impact of key risks on business

10 Vendor Analysis

• 10.1 Vendors covered
• Exhibit 91: Vendors covered

• 10.2 Market positioning of vendors 
• Exhibit 92: Matrix on vendor position and classification

• 10.3 Alphabet Inc.
• Exhibit 93: Alphabet Inc. - Overview
• Exhibit 94: Alphabet Inc. - Business segments
• Exhibit 95: Alphabet Inc. - Key news
• Exhibit 96: Alphabet Inc. - Key offerings
• Exhibit 97: Alphabet Inc. - Segment focus

• 10.4 Amazon.com Inc.
• Exhibit 98: Amazon.com Inc. - Overview
• Exhibit 99: Amazon.com Inc. - Business segments
• Exhibit 100: Amazon.com Inc. - Key news
• Exhibit 101: Amazon.com Inc. - Key offerings
• Exhibit 102: Amazon.com Inc. - Segment focus

• 10.5 Baidu Inc.
• Exhibit 103: Baidu Inc. - Overview
• Exhibit 104: Baidu Inc. - Business segments
• Exhibit 105: Baidu Inc. - Key offerings
• Exhibit 106: Baidu Inc. - Segment focus

• 10.6 Dentsu Group Inc.
• Exhibit 107: Dentsu Group Inc. - Overview
• Exhibit 108: Dentsu Group Inc. - Product / Service
• Exhibit 109: Dentsu Group Inc. - Key news
• Exhibit 110: Dentsu Group Inc. - Key offerings

• 10.7 Epsilon Data Management LLC 
• Exhibit 111: Epsilon Data Management LLC - Overview
• Exhibit 112: Epsilon Data Management LLC - Product / Service
• Exhibit 113: Epsilon Data Management LLC - Key offerings

• 10.8 InterActiveCorp
• Exhibit 114: InterActiveCorp - Overview
• Exhibit 115: InterActiveCorp - Business segments
• Exhibit 116: InterActiveCorp - Key news
• Exhibit 117: InterActiveCorp - Key offerings
• Exhibit 118: InterActiveCorp - Segment focus

• 10.9 Meta Platforms Inc.
• Exhibit 119: Meta Platforms Inc. - Overview
• Exhibit 120: Meta Platforms Inc. - Business segments
• Exhibit 121: Meta Platforms Inc. - Key news
• Exhibit 122: Meta Platforms Inc. - Key offerings
• Exhibit 123: Meta Platforms Inc. - Segment focus

• 10.10 Microsoft Corp.
• Exhibit 124: Microsoft Corp. - Overview
• Exhibit 125: Microsoft Corp. - Business segments
• Exhibit 126: Microsoft Corp. - Key news
• Exhibit 127: Microsoft Corp. - Key offerings
• Exhibit 128: Microsoft Corp. - Segment focus

• 10.11 Sirius XM Holdings Inc. 
• Exhibit 129: Sirius XM Holdings Inc. - Overview
• Exhibit 130: Sirius XM Holdings Inc. - Business segments
• Exhibit 131: Sirius XM Holdings Inc. - Key offerings
• Exhibit 132: Sirius XM Holdings Inc. - Segment focus

• 10.12 Verizon Communications Inc. 
• Exhibit 133: Verizon Communications Inc. - Overview
• Exhibit 134: Verizon Communications Inc. - Business segments
• Exhibit 135: Verizon Communications Inc. - Key offerings
• Exhibit 136: Verizon Communications Inc. - Segment focus

11 Appendix

• 11.1 Scope of the report

• 11.2 Inclusions and exclusions checklist 
• Exhibit 137: Inclusions checklist
• Exhibit 138: Exclusions checklist

• 11.3 Currency conversion rates for US$ 
• Exhibit 139: Currency conversion rates for US$

• 11.4 Research methodology
• Exhibit 140: Research methodology
• Exhibit 141: Validation techniques employed for market sizing
• Exhibit 142: Information sources

• 11.5 List of abbreviations 
• Exhibit 143: List of abbreviations

About Us
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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