Online ad spending market to grow at a CAGR of 10.98% from 2021 to 2026, Decline in offline ad spending to boost the market growth - Technavio

Rhea-AI Summary

The global online ad spending market is projected to grow by USD 241.99 billion from 2021 to 2026 at a CAGR of 10.98%, driven by the decline in offline advertising, particularly radio ads, worsened by pandemic effects. North America is expected to contribute 41% of the market growth, with a strong increase in mobile ad spending as smartphone usage rises globally. Notably, online video advertising is forecast to rise from USD 62 billion in 2021 to USD 91 billion in 2024. However, the market faces challenges, including click fraud activities impacting growth.

Positive

• Projected growth of USD 241.99 billion from 2021 to 2026.
• CAGR of 10.98% indicates strong market momentum.
• North America expected to account for 41% of market growth.

Negative

• Click fraud activities pose significant challenges to market growth.

NEW YORK, March 14, 2023 /PRNewswire/ -- The global online ad spending market size is estimated to grow by USD 241.99 billion from 2021 to 2026, according to Technavio Research. The market is estimated to grow at a CAGR of 10.98% during the forecast period. Moreover, the growth momentum will accelerate. The decline in offline ad spending is driving market growth. Spending on radio ads has declined in recent years due to the rising competition from digital avenues such as audio streaming services. The COVID-19 pandemic led to a further decline in radio ad spending in 2020, as fewer people commuted to work, which reduced daily listenership. These factors will positively impact the growth of the global online ad spending market during the forecast period. For more insights on the market - Request a sample report

What's New?

• Recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession 
• Global competitiveness and key competitor positions 
• Market presence across multiple geographical footprints - Strong/Active/Niche/Trivial  - buy the report!

Online ad spending market - Segmentation assessment
Segment overview
Technavio has segmented the market based on platform (mobile devices and desktops). 

• The mobile devices segment will account for a significant share of the market growth during the forecast period. Mobile devices offer a better return on investment than desktop computers when it comes to online ad spending. The rising number of smartphone users globally will drive the growth of this segment. Mobile advertising includes a variety of advertisements, such as mobile videos and in-app, which increase their outreach.

Geography overview
Based on geography, the global online ad 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 online ad spending market.

• North America is expected to account for 41% of the market's growth during the forecast period. The US is a key contributor to the online ad spending market growth in the region. Moreover, market growth in this region will be faster than the growth of the market in MEA. The increasing penetration of smartphones and a strong broadband infrastructure will drive the online ad spending market growth in North America during the forecast period.

Insights on the market contribution of various segments, including country- and region-
wise data - Download a sample report

Online ad spending market – Market dynamics

Leading trends influencing the market 

• The growth of online video and connected TV (CTV) advertising is a key trend in the market.
• The spending on online video advertising is expected to rise from USD 62 billion in 2021 to USD 91 billion in 2024.
• The amount of time spent on streaming videos increased during the outbreak of the COVID-19 pandemic.
• This led to a rise in subscription-based services globally.
• Therefore, the overall rise in consumption of OTT content had a favorable impact on the market.

Major challenges hindering the market growth

• Click fraud activities are challenging the market growth.
• Mobile advertising is one of the fastest-growing segments of online advertising, with the increasing number of smartphone users.
• Many ad publishers are engaged in ad stacking, click injecting, and running background ads on mobile apps.
• However, this has increased the amount of in-app click fraud. For instance, in 2020, mobile apps accounted for 19% of all fraudulent clicks.
• These challenges are expected to negatively impact the growth of the global online ad spending market during the forecast period.

Insights on trends and challenges - Request a sample report!

What are the key data covered in this online ad spending market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the online ad spending market between 2022 and 2026
• Precise estimation of the size of the online ad spending market and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the online ad 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 online ad spending market vendors

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Online Ad Spending Market Scope
Report Coverage	Details
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 10.98%
Market growth 2022-2026	USD 241.99 billion
Market structure	Fragmented
YoY growth 2021-2022 (%)	10.4
Regional analysis	North America, APAC, Europe, South America, and Middle East and Africa
Performing market contribution	North America at 41%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading vendors, market positioning of vendors, competitive strategies, and industry risks
Key companies profiled	Alphabet Inc., Alibaba Group Holding Ltd., Alliance Data Systems Corp., Amazon.com Inc., Baidu Inc., Dentsu Group Inc., Digital Turbine Inc., Eniro Group AB, GroupM, Hakuhodo DY Media Partners Inc. Co. Ltd., IAC InterActiveCorp, Meta Platforms Inc., Microsoft Corp., Reworld Media, Sohu.com Ltd., SXM Media, Tencent Holdings Ltd., The Interpublic Group of Companies Inc., Twitter Inc., and Verizon Communications Inc.
Market dynamics	Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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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 Platform
• 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 between 2021 and 2026

• 4.2 Bargaining power of buyers 
• Exhibit 18: Bargaining power of buyers – Impact of key factors in 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 Platform

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

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

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

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

• 5.5 Market opportunity by Platform 
• Exhibit 36: Market opportunity by Platform ($ billion)

6 Customer Landscape

• 6.1 Customer landscape overview 
• Exhibit 37: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

7 Geographic Landscape

• 7.1 Geographic segmentation 
• Exhibit 38: Chart on Market share by geography 2021-2026 (%)
• Exhibit 39: Data Table on Market share by geography 2021-2026 (%)

• 7.2 Geographic comparison 
• Exhibit 40: Chart on Geographic comparison
• Exhibit 41: Data Table on Geographic comparison

• 7.3 North America - Market size and forecast 2021-2026
• Exhibit 42: Chart on North America - Market size and forecast 2021-2026 ($ billion)
• Exhibit 43: Data Table on North America - Market size and forecast 2021-2026 ($ billion)
• Exhibit 44: Chart on North America - Year-over-year growth 2021-2026 (%)
• Exhibit 45: Data Table on North America - Year-over-year growth 2021-2026 (%)

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

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

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

• 7.7 Middle East and Africa - Market size and forecast 2021-2026 
• Exhibit 58: Chart on Middle East and Africa - Market size and forecast 2021-2026 ($ billion)
• Exhibit 59: Data Table on Middle East and Africa - Market size and forecast 2021-2026 ($ billion)
• Exhibit 60: Chart on Middle East and Africa - Year-over-year growth 2021-2026 (%)
• Exhibit 61: Data Table on Middle East and Africa - Year-over-year growth 2021-2026 (%)

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

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

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

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

• 7.12 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 (%)

• 7.13 Market opportunity by geography 
• Exhibit 82: 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 83: Impact of drivers and challenges in 2021 and 2026

• 8.4 Market trends

9 Vendor Landscape

• 9.1 Overview

• 9.2 Vendor landscape 
• Exhibit 84: Overview on Criticality of inputs and Factors of differentiation

• 9.3 Landscape disruption 
• Exhibit 85: Overview on factors of disruption

• 9.4 Industry risks 
• Exhibit 86: Impact of key risks on business

10 Vendor Analysis

• 10.1 Vendors covered 
• Exhibit 87: Vendors covered

• 10.2 Market positioning of vendors 
• Exhibit 88: Matrix on vendor position and classification

• 10.3 Alphabet Inc. 
• Exhibit 89: Alphabet Inc. - Overview
• Exhibit 90: Alphabet Inc. - Business segments
• Exhibit 91: Alphabet Inc. - Key news
• Exhibit 92: Alphabet Inc. - Key offerings
• Exhibit 93: Alphabet Inc. - Segment focus

• 10.4 Alibaba Group Holding Ltd. 
• Exhibit 94: Alibaba Group Holding Ltd. - Overview
• Exhibit 95: Alibaba Group Holding Ltd. - Business segments
• Exhibit 96: Alibaba Group Holding Ltd. - Key offerings
• Exhibit 97: Alibaba Group Holding Ltd. - Segment focus

• 10.5 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

• 10.6 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

• 10.7 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

• 10.8 Eniro Group AB 
• Exhibit 111: Eniro Group AB - Overview
• Exhibit 112: Eniro Group AB - Product / Service
• Exhibit 113: Eniro Group AB - Key news
• Exhibit 114: Eniro Group AB - Key offerings

• 10.9 Meta Platforms Inc. 
• Exhibit 115: Meta Platforms Inc. - Overview
• Exhibit 116: Meta Platforms Inc. - Business segments
• Exhibit 117: Meta Platforms Inc. - Key news
• Exhibit 118: Meta Platforms Inc. - Key offerings
• Exhibit 119: Meta Platforms Inc. - Segment focus

• 10.10 Microsoft Corp. 
• Exhibit 120: Microsoft Corp. - Overview
• Exhibit 121: Microsoft Corp. - Business segments
• Exhibit 122: Microsoft Corp. - Key news
• Exhibit 123: Microsoft Corp. - Key offerings
• Exhibit 124: Microsoft Corp. - Segment focus

• 10.11 The Interpublic Group of Companies Inc.
• Exhibit 125: The Interpublic Group of Companies Inc. - Overview
• Exhibit 126: The Interpublic Group of Companies Inc. - Business segments
• Exhibit 127: The Interpublic Group of Companies Inc. - Key offerings
• Exhibit 128: The Interpublic Group of Companies Inc. - Segment focus

• 10.12 Twitter Inc. 
• Exhibit 129: Twitter Inc. - Overview
• Exhibit 130: Twitter Inc. - Product / Service
• Exhibit 131: Twitter Inc. - Key offerings

11 Appendix

• 11.1 Scope of the report

• 11.2 Inclusions and exclusions checklist 
• Exhibit 132: Inclusions checklist
• Exhibit 133: Exclusions checklist

• 11.3 Currency conversion rates for US$ 
• Exhibit 134: Currency conversion rates for US$

• 11.4 Research methodology 
• Exhibit 135: Research methodology
• Exhibit 136: Validation techniques employed for market sizing
• Exhibit 137: Information sources

• 11.5 List of abbreviations 
• Exhibit 138: List of abbreviations

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Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide 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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FAQ

What is the projected growth of the online ad spending market?

The online ad spending market is expected to grow by USD 241.99 billion from 2021 to 2026.

What is the expected CAGR for the online ad market from 2021 to 2026?

The online ad spending market is projected to grow at a CAGR of 10.98%.

Which region will contribute the most to online ad spending growth?

North America is expected to contribute 41% of the market growth during the forecast period.

What challenges does the online ad spending market face?

One major challenge is click fraud activities that hinder market growth.

How much is online video advertising expected to grow?

Online video advertising spending is forecast to rise from USD 62 billion in 2021 to USD 91 billion in 2024.