Online Advertising Market Size, Share, and Industry Analysis, By Type (Video Advertising, Native Advertising, Display Advertising, Full-Screen Interstitials, and Others), By Platform (Mobiles, Laptop, Desktops & Tablets, and Others), By Pricing Model (Flat Rate Pricing Model, Cost Per Mille Pricing Model, and Cost Per Click Pricing Model), By Industry (Media & Entertainment, BFSI, Education, Retail & Consumer Goods, IT & Telecom, Healthcare, and Others), and Regional Forecast, 2024-2032

Online advertising is the most significant and highly rewarding marketing tactic in recent times. It uses the internet to generate website traffic and deliver specific marketing messages to the right customers. With millions of internet users all around the world, online advertising is becoming an essential factor for success for every company. According to industry experts, the number of internet users globally is around 5.18 billion. Online advertising is much more affordable than traditional advertising methods, and even businesses with less budget can access a fairly wide audience and enhance their marketing further. As per Google's estimate, every USD 1 spent on Google Ads helps to earn the business USD 2 in revenue, which is 200% ROI.

Online advertising can be done through various mediums, and mobile advertising is among them. Mobile marketing is becoming increasingly important as more people use their phones to make purchasing decisions and browse information about products and services. According to WebFX, by 2023, mobile advertising spending is expected to surpass USD 339 million, and in-app ad revenue is estimated to increase by 6.2% for non-gaming apps and 19.1% for gaming apps.

Impact of Generative AI on the Online Advertising Market

The global generative AI market was valued at USD 13.7 billion in 2023, and venture capital investment in generative AI increased by around 425% from 2020 to 2022 and continues to grow. In the world of marketing and advertising, the adoption of AI has changed how brands across industries operate. According to industry experts, 90% of corporate executives plan to integrate generative AI technologies in the coming years. Generative AI holds the key to creating personalized advertisements that build strong connections with individuals while optimizing labor-intensive content generation procedures.

The rise of generative AI has led the way in an era of hyper-personalized marketing. By using huge databases and multifaceted algorithms, businesses are now able to create personalized advertising strategies that help them connect with individual customers. This level of personalization goes beyond straightforward segmentation by modifying information based on behaviors, interests, and demographics. Generative AI technology utilizes this data to suggest personalized products to individual customers.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends, and Opportunities


• Business Strategies Adopted by the Key Players


• Impact of Generative AI on the Global Online Advertising Market


• Consolidated SWOT Analysis of Key Players

Analysis by Industry

Online Advertising is used in various industries, including media & entertainment, BFSI, retail & consumer goods, IT & telecom, healthcare, and others.

The rise of e-commerce and digital transformation among companies has resulted in increased online advertising spending. Also, the number of online shoppers globally was 2.64 billion in 2023, and e-commerce sales have grown by 10.4% in 2023; due to this, companies are shifting their focus to online advertising. Due to the pandemic, online retail accelerated at a rapid pace, and e-commerce sales increased by 45.5%. As per Forbes, in 2024, around 20.1% of retail purchases are expected to take place online as retailers are putting more money into developing and marketing online stores than investing in brick-and-mortar locations.

The media & entertainment industry is estimated to witness significant growth during the forecast period. The media and entertainment industry mainly has two sources of revenue: advertising from brands and consumer spending, which includes rentals, subscriptions, and other things. Advertising from brands and consumer spending accounts for more than 95% of industry revenue, and among these, online advertising is the main source of revenue generation and sustainability for the industry. According to industry experts, most TV broadcasters across the globe get around 60%-80% of their revenue from advertising.

Regional Analysis

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The global online advertising market is distributed into five regions: North America, South America, Europe, the Middle East & Africa, and Asia Pacific. As of 2023, a significant share of the market was held by North America, owing to increasing internet penetration in the region. As of 2023, in North America, there are around 450 million Internet users, and as a large number of the population has access to the Internet, advertisers have an audience to target and engage with online advertising channels. Also, there are around 310 million smartphone users in the U.S., and this is also one of the major factors that is driving the market growth in the region.

Asia Pacific is estimated to showcase the highest CAGR during the forecast period. In 2023, the region accounted for over 35% of global online ad spending. As e-commerce is rapidly growing in the region, the demand for online advertising is also increasing. Also, internet users in the region accounted for 50% of global internet users in 2023, and over 85% of the population in the region owns smartphones. Due to this, the market is expected to witness growth. Among Asia Pacific countries, China dominates the online advertising market, and mobile advertising accounts for 80% of online ad spending in China.

The distribution of the global online advertising market by region of origin is as follows:

• North America – 34%


• South America – 10%


• Europe – 20%


• Middle East & Africa – 11%


• Asia Pacific – 25%

Key Players Covered

The key players in this market include Google, Facebook LLC, Baidu, Tecent, ByteDance, Adobe System, AOL, Verizon Media, Twitter, and Microsoft Corporation.

Key Industry Developments

• May 2023: Microsoft launched Microsoft Advertising Chat GPT API to help partners innovate their own engaging experiences, and by introducing this solution, the company entered into a partnership with Baidu Global in November 2023.


• May 2023: Google launched innovative AI advertising solutions to advance its advertising capabilities by using AI technology. With AI advertising tools, the company aims to provide businesses with innovative solutions for creating compelling advertisements.