Global internet advertising market projected to hit $1,089 billion by 2027
By Zion Rufus
The global internet advertising market size which was valued at $319 billion in 2019 is projected to reach $1,089 billion by 2027. It is anticipated to grow at a CAGR of 17.2% from 2020 to 2027.
Internet advertising involves using the internet to communicate promotional and marketing messages to a target audience. The steady growth of internet users globally has become an important factor fueling the growth of the online internet advertising market.
With marketers leveraging internet advertising to achieve their marketing goals, the rise of social media bloggers, growing trend of influencer marketing, growing demand for e-commerce and social commerce accelerated by the pandemic, and the continuous increase in penetration of internet across the globe has presented a great opportunity for internet advertising. This trend has urged brands to invest in innovative and interactive social media advertisements.
Internet advertising has also become one of the most adopted strategies by marketers and advertisers to communicate with consumers, pull website traffic, promote brand exposure, attract their target audience, find new customers, expand their reach, diversify their revenue streams, and as well influence the purchase decisions of their audience.
Marketers use internet advertising such as banners, pay-per-call ads, pay-per-click ads, and pop-ups through e-newsletters and personalized email marketing, search engines, suitable websites, online magazines, and newspapers to reach the right customer, at the right time. Advertisers are also using the platform to reach their targeted customers as it is relatively inexpensive compared to traditional advertising methods like TV advertisements; and also helps in reaching out to a wide range of customers.
SMEs and online start-ups are now making a shift from traditional advertising to self-serve platforms that allow small businesses to advertise with ease. These online platforms minimize the expenses by allowing the companies to take control of their marketing schemes and selling products directly to the consumers. According to Statista, small businesses spend, on average, up to $10,000 per month on online advertising.
So far, North America has been reported as the largest revenue contributor to the online advertising market with a market share of 36% in 2018, due to the major presence of companies in the region such as Google, Amazon, Facebook and others.
The global internet advertising market share is also expected to maintain its dominance even in the coming years driven by factors such as extensive adoption of smartphones, emergence of high-speed internet, proliferation of social media, rise in advertising spends on digital media across various industries, and increase in popularity of streaming platforms.
The use of smartphones has grown rapidly and the way consumers interact with various brands or sellers has transformed, owing to the accessibility of high-speed internet on smartphones. This factor is expected to fuel the internet advertising market growth as it has become crucial for brands to understand consumers’ interests with the help of smartphone advertisements and to stimulate their decision to purchase.
According to IndustryARC estimates, around 70-80% of social networking companies generate revenue through mobile advertising. In 2019, around 3.48 billion monthly active users visit social networking sites such as Facebook, YouTube, LinkedIn and others which increased by 9% from 2018. Increasing usage of social media platforms by advertising companies to reach targeted customers and high usage of smartphones rather than desktops for social media platforms is set to drive the mobile advertising market growth.
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