One of the most popular forms of marketing, online advertising uses internet to deliver marketing and promotional messages to the customers. Also known of internet advertising, this type of marketing takes place through different modes such as social media and email marketing, web banners, search engine marketing and mobile advertising. Growing dependency on internet and rising demand for smart devices are some of the major factors influencing the overall growth of the online advertising market. The global market is aiming at exponential growth, especially across the emerging markets. Technological advancements and growing adoption of these solutions are also expected to provide essential traction for the industry on global scale.
What Drives the Market?
Customers are spending more and more time in online engagement. Growth in the use of various social media platforms, online communication channels, e-commerce, m-commerce, and such other activities is witnessed around the world. This trend is expected to drive the online advertising market. According to the experts, the online advertising market is driven by three basic factors. These factors include increased time spending on the internet, shifting interest from print media and overall evolution of the communication technology. Strong growth of online marketing is expected to drive this industry across different parts of the world. Technological advancements in the existing solutions and growing demand from the end-users and geographic regions are also expected to create business opportunities.
Segmentation in Online Marketing Market
Experts segment the online advertising market on the basis of the types of formats and their demand across different business verticals and geographic regions. The types of formats include display ads, search engine marketing, digital videos, mobile ads, rich media, lead generation, classified, web banners, and others. The business verticals re segmented into BFSI, automotive, consumer goods, retail, media, entertainment, healthcare, education, CPG, telecom, IT-enabled services, tourism, transport, industrial, and others. On the basis of geographic regions, the internet advertising market is categorized into Europe, Asia Pacific, North America and rest of the world. Studying these segments of the market provides details about the current trends as well as projected growth opportunities for the market.
Strong growth in social media market, increased opportunities for advertising through mobile applications and video streaming and advertising are expected to present vital growth prospects for the market. According to the experts, the online advertising market is poised to witness a healthy growth rate of over 11% from 2014 to 2019. At the projected rate, the online marketing industry is anticipated to become worth $220.38 billion by the end of the year 2019. According to the researchers, the industry is expected to witness a CAGR of over 14% from 2018 to 2019. North America is expected to dominate the global market. However, emerging markets are expected to witness rapid growth as well.