Emergence of advertising automation and rise in adoption of identity-based pay-per-click (PPC) marketing are expected to create multiple opportunities in the industry. Increase in adoption of smartphones, emergence of high speed internet, proliferation of social media, growing expenditure on digital media across various industries, and surge in popularity of streaming platforms fuel the growth of the global internet advertising market.

The global internet advertising market was estimated at $319 billion in 2019, and is expected to hit $1.08 trillion by 2027, registering a CAGR of 17.2% from 2020 to 2027.

Key industry players – Alibaba Group Holding Limited, Google LLC, Baidu, Inc., Amazon.com, Inc., International Business Machines Corporation, Facebook, Inc., Microsoft Corporation, Twitter Inc., Verizon Communications Inc., and Hulu LLC.

Based on geography, North America garnered the highest share in 2019, holding around two-fifths of the global internet advertising market, owing to surge in advertisers’ expenditure on digital advertising. Asia-Pacific, on the other hand, would exhibit the fastest CAGR of 21.6% from 2020 to 2027. Particularly, in countries, such as India, China, and Indonesia, apps are growing importance due to the ubiquity of smartphone usage as well as gaming. This factor has driven the market growth.

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Based on pricing model, the performance based segment accounted for more than half of the global internet advertising market revenue in 2019 and is projected to rule the roost by 2027, due to the growing demand to ensure most out of the ad budgets in an increasingly competitive environment across various industries. Simultaneously, the hybrid segment would register the fastest CAGR of 22.7% during the forecast period. This is because hybrid pricing model for internet advertising enables companies to increase the return from their advertising investments more effectively through better conversion or expanded market reach with the help of combination of two advertising concepts into a single campaign.

Based on platform type, the mobile segment contributed to nearly two-thirds of the global internet advertising market share in 2019 and is expected to retain its dominance by the end of 2027. The same segment is also projected to register the fastest CAGR of 18.9% throughout the forecast period, owing to various factors such as increase in mobile internet users, growth in popularity of social media, and time spent on mobile devices.

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Covid-19 scenario

  • Rise in utilization of social media during the pandemic led to an increased drift to take recourse to social media platforms to promote various media content with the target audience, which impacted the global market for Internet advertising positively.
  • The advertising of the media and entertainment content over Twitter, Facebook, and Instagram has also become a trend in the recent time.

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