Wilmington, Delaware, June 04, 2024 (GLOBE NEWSWIRE) -- The advertising market has undergone significant transformation over the past few decades, evolving from traditional media outlets like print, radio, and television to a digital-first ecosystem. This shift has been driven by advancements in technology, changing consumer behaviors, and the proliferation of new media channels.
Digital advertising has overtaken traditional advertising methods, accounting for a substantial share of total ad spend. This includes search engine marketing, social media ads, display advertising, and video ads. Platforms like Google, Facebook, and increasingly TikTok and Instagram, dominate the digital ad space. For instance, in September 2023, Microsoft launched a new advertising solution called Video and Connected TV (CTV) ads. This addition enables advertisers to design online video and CTV ad campaigns through the Microsoft Advertising platform. By utilizing audience intelligence, this solution allows for the targeting of high-value customers and aims to boost conversions. Innovations like this are expected to have a positive impact on the advertising market in the coming years.
Video content continues to gain traction, with platforms like YouTube, TikTok, and streaming services becoming key players in the ad market. Short-form video ads are particularly effective in capturing consumer attention. For instance, in May 2023, PubMatic revealed a collaboration with SeenThis aimed at delivering faster and higher-quality digital advertising with reduced carbon emissions. This partnership is set to improve sustainability within the digital supply chain.
The global increase in internet access, especially in emerging markets, is expanding the potential audience for digital advertisers. This growth is further propelled by the proliferation of affordable smartphones and improved network infrastructure. Also, the changing habits of consumers, who now spend more time online and seek on-demand content, are driving the shift towards digital advertising. Advertisers are adapting by investing more in digital channels to meet consumers where they are.
Moreover, there is significant potential for growth in emerging markets where internet and mobile usage are on the rise. Advertisers can tap into these regions to expand their reach. Technologies such as augmented reality (AR) and virtual reality (VR) offer new ways to engage consumers. Interactive ads provide an immersive experience that can enhance brand recall and customer engagement. As streaming services gain popularity, connected TV presents a lucrative opportunity for advertisers. Ads on platforms like Netflix, Hulu, and Amazon Prime Video can reach highly engaged audiences. The use of AI and machine learning in advertising is still in its nascent stages, offering vast potential for growth. These technologies can further refine targeting, improve ad performance, and provide deeper insights into consumer behavior.
Digital advertising, particularly on mobile and social media platforms, is now the dominant force. Growth opportunities abound in emerging markets, interactive technologies, and sustainable practices. As the landscape continues to shift, staying ahead of trends and leveraging new technologies will be key for advertisers aiming to connect with increasingly savvy and digital-first consumers.
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Key Takeaways of the Report:
- Traditional media is anticipated to grow fastest over the forecast timeline capturing a revenue share of 49.3% in advertising market. The enduring reach and influence of television, radio, and print media, particularly in certain demographics and regions. Additionally, traditional media channels are adapting to digital trends, offering integrated advertising solutions that combine the strengths of both traditional and digital platforms, thereby attracting advertisers seeking a multi-channel approach.
- Video advertising's dominance in the market, capturing a substantial revenue share of 34.6%, is propelled by its unparalleled ability to captivate and engage audiences. Video content is highly immersive, allowing advertisers to convey their messages effectively and evoke emotional responses. With the rise of digital platforms and streaming services, video ads have become increasingly accessible and impactful, offering advertisers the opportunity to reach targeted audiences across various devices and channels.
- Retail and consumer goods by industry vertical dominated the advertising market in 2023 with a revenue share of 14.2%. The dominance is driven by the sector's inherent need for marketing to attract consumers. Advertising plays a pivotal role in driving sales and brand awareness within this competitive landscape. Additionally, the rise of e-commerce and omnichannel retailing has further propelled advertising investments in this sector, as brands vie for consumer attention and loyalty across various platforms.
- In 2023, Europe solidified its position as the second-leading region in the global advertising market. This is due to the region's diverse and affluent consumer base, advanced digital infrastructure, and thriving media landscape. Additionally, Europe's strategic location and cultural influence make it an attractive market for advertisers seeking to target diverse demographics across multiple countries. The region's stability and economic growth further bolster its position as a key player in the global advertising arena.
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Following are the major companies active within the advertising market:
- Dentsu Inc.
- DIGITAS
- GroupM
- Havas
- IPG
- Omnicom Group Inc.
- Publicis Groupe
- R.R. Donnelley & Sons Company
- Weber Shandwick
- WPP Group PLC
- Other Industry Participants
Global Advertising Market
By Platform
- Traditional Media
- Television
- Radio
- Print
- Newspapers
- Magazines
- Others
- Billboards
- Digital Media
- Online Display Ads
- Social Media Ads
- Search Engine Marketing (SEM)
- Pay-per-click (PPC)
- Display ads
- Product Listing ads (PLAs)
- Email Marketing
- Programmatic Advertising
- Over-the-Top (OTT) Advertising
- Native ads
- Interactive ads
- Others
By Add Format
- Text
- Image
- Video
- Banners
- Others
By Industry Vertical
- Food and Beverage
- Travel and Hospitality
- Entertainment and Media
- Real Estate
- Education
- Healthcare
- Automotive
- BSFI
- Retail and Consumer Goods
- IT and Technology
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
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