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Extension of COVID-19 Lockdown in India Compels Stakeholders to Anticipate Future Trends

The digital ad spending market has witnessed an unprecedented increase in the budgets of online businesses due to travel restriction during the COVID-19 pandemic. Since physical events such as conferences, concerts, and sporting events have either been cancelled or postponed, digital marketers have been capitalizing on this opportunity to approach retail businesses, BFSI, and automotive companies to adapt to digital marketing.

Since the automotive industry has been worst hit due to the coronavirus pandemic, creative marketing and sales strategies, such as virtual test drives, digital showrooms, and online reviews on new car launches are growing prominent. Companies including Google, Spotify, and Unilever are encouraging employees to work from home. The extension of lockdown in many cities of India and the high number of COVID-19 cases in Singapore, Canada, and Australia have compelled stakeholders in the digital ad spending market to anticipate future possibilities.

digital ad spending market infographic

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Mobile Messaging Channels Hold Potential to Increase Conversion Rates

Steering engagement with an increasing number of channels available to connect with customers is potentially challenging for digital marketers. Digital strategists and social media evangelists are moving toward the direction of consumers, whilst adopting mobile messaging channels that were previously used for chatting with friends. Mobile messaging channels are enabling two-way dialogue between brands and consumers. Digital marketers in the digital ad spending market are capitalizing on this opportunity to leverage personalized and dynamic content on these channels that help to enhance customer experience and build customer loyalty.

Innovative thinking around earned media placements, leadership content, and article placements are among many other strategies being used by digital marketers to increase conversion rates.

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Hybrid-channel Buying Habits Creating Incremental Opportunities for Marketers

Since an increasing number of individuals are seen increasing their online time in order to read news, scrolling social media, and streaming videos, retailers are expected to increase their ad spending. This explains why the digital ad spending market is expected to grow at an astonishing CAGR of ~14% during the forecast period. Viewers and consumers are adopting new hybrid-channel buying habits such as BOPIS (buy-online-pickup-in-store), online shopping, and curbside pickup, which are catching the attention of marketing companies in the digital ad spending market.

In a survey conducted by Criteo - a provider of advertising platform for the open Internet, it has been reported that online plus in-store sales fell significantly in 2020 as compared to 2019. However, there has been an increase in website and eCommerce sales.

Real-time Customer Interaction Growing Prominent in India’s BFSI Sector

The BFSI sector has increased its ad spends for paid search, followed by display ads and social media. Such trends are translating into revenue opportunities for marketing companies in the digital ad spending market. Marketers are tapping into lucrative growth opportunities in the Indian BFSI sector, since clients are adopting advanced technologies to increase customer acquisition and ensure better outcomes for businesses.

The BFSI sector is becoming extremely complex with the rise of mobile and open banking. The advertising companies in the digital ad spending market are recognizing a growing demand for real-time customer interaction, personalized services, and new regulations. This is fueling the demand for digital marketing and communications, which are crucial to financial brands in order to gain an edge in today’s cutthroat competition. Programmatic ad networks combined with direct methods are growing popular in India’s BFSI sector.

Marketers Expect Economic Growth in Travel, Automotive Industries post COVID-19 Crisis

The rising economic growth in European countries such as France and the U.S. after a decline in COVID-19 cases is anticipated to generate revenue opportunities for stakeholders in the digital ad spending market. This trend is predicted to lift different advertising channels and formats such as digital video, social media, and the out-of-home. The analysts at Transparency Market Research (TMR) expect a double-digit growth in digital ad spending, whereas traditional mediums including national radio and TV are estimated for a single digit growth.

Companies in the digital ad spending market are expecting an increase in spending by travel and automotive industries, owing to evolving behaviors of customers post the COVID-19 outbreak in France and the U.S. Massive vaccine rollout in most countries is another key driver for market growth since people are able to move freely.

Mobile Commerce Ushering Change in Market Landscape

Mobile advertising and programmatic advertising are a fast growing phenomenon in the global digital ad spending market. Mobile advertising has been outpacing all other forms of digital advertising in the U.S. It accounts for more than 50% of the digital ad revenue spending in the U.S. In the upcoming years, it is anticipated that the revenue share of mobile advertising has the potential to surpass the ad revenue spending carried out for TV.

The programmatic advertising is being highly publicized for its automated budding on advertising inventory that takes place in real-time. The digital marketing companies in the digital ad spending market are taking advantage of this opportunity, since programmatic marketing allows strategists to show an ad to a specific customer and in a specific context.

Real-time Bidding Eliminating Issues Associated with Blind Ad Buys

Content marketing has not only gained recognition in the past, but marketers in the digital ad spending market are seen to have a renewed interest for the same. An increasing number of businesses is realizing the importance and effectiveness of digital banners and display ads.

Instead of serving up an ad, companies are embedding storytelling in marketing pitch to resonate with the target audience. This is being manifested in the form of publisher-tailored content, which the advertiser can sponsor. Content marketing has given rise to brands as publishers’ movement that has led to personalization in brand messages. New level of demographic data and real-time bidding with programmatic advertising are eliminating the issues associated with blind ad buys. As such, marketers are expected to face evolving privacy regulations and phasing out of third party cookies for digital ads.

digital ad spending market segmentation

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Analysts’ Viewpoint

Even though the shift to eCommerce will help to bolster digital sales, the U.S. retailers are likely to increase their digital ad spending at a sluggish rate due to uncertainties in demand and supply amid the coronavirus pandemic. The digital ad spending market is expected to reach a valuation of US$ 1.4 Trn by the end of 2031. However, evolving privacy regulations, such as Apple announcing changes to iOS 14 to increase user privacy will affect the performance of Facebook campaigns. Stakeholders should find alternative marketing strategies such as programmatic marketing to eliminate issues of blind ad buying and target genuine customers in order to increase conversion rates.

Digital Ad Spending Market: Overview

  • The latest research report published by Transparency Market Research pertains to the global digital ad spending market for the historical period of 20182019; 2020 is the actual year, and the forecast period is 2021-2031. Increase in penetration of tablets and smartphones, and technology implementation in enterprises are key factors leading to the growth of the digital ad spending market. Rise in spending on advertisements by retail & eCommerce, BFSI, automotive, IT & telecom, media & entertainment, and healthcare sectors is anticipated to propel the digital ad spending market during the forecast period.
  • In terms of revenue, the global digital ad spending market is estimated to reach the value of US$ 1.4 Trn by 2031, expanding at a CAGR of ~14% during the forecast period

Rise in Adoption of Digital Media Platforms and Spending on Digital Video Ads: Key Driver of Digital Ad Spending Market

  • Expansion of the media & entertainment sector due to surge in the number of digital media platforms or advent of OTT platforms across the globe is anticipated to fuel the digital ad spending market growth. Rise in investments in digital video content and digital video advertising spending by advertisers is expected to propel the digital ad spending market. Digital display ads, including video, is a rapidly expanding ad format. For instance, according to the IAB Europe, 73% of advertisers were investing more than 41% of their budgets in digital video in 2020. Hence, increase in spending on video ads by advertisers is anticipated to drive the digital ad spending market during the forecast period.
  • Software development companies are focused on the development of different enterprise mobile apps related to accounting & finance, communication & collaboration, CRM, and ERP processes. Demand for entertainment apps and health & fitness apps is increasing among students and working professionals globally. Thus, an increase in the demand for enterprise mobile apps, short video mobile apps, and health & fitness apps among users fuels the digital ad spending market.
  • COVID-19 has effectively reset all sectors. Demand for digital advertisement decreased during the COVID-19 pandemic by end users. During the pandemic, digital ad spending was used for numerous purposes such as promoting distance work and training, and supporting online channels or websites in the sale of essential products and services. This is expected to boost the digital ad spending market during the forecast period.

Integration of AI/ ML/ AR Technology in Digital Advertisement

  • Artificial intelligence and machine learning technologies help to recognize trends and patterns in interaction of visitors with a website or digital experience allowing digital marketers to rapidly improve the content management of websites and distribution of new digital content. This is essentially carried out with a CMS, which is capable of distributing content across multiple channels, from websites to mobile apps and Internet of Things (IoT). Hence, integration of artificial intelligence/machine learning/augmented reality technology in advertisement is projected to offer lucrative opportunities for the digital ad spending market during the forecast period.
  • Thus, rise in need of behavioral marketing & better targeting and personalization of video ads is expected to create lucrative opportunities for the digital ad spending market during the forecast period

Digital Ad Spending Market: Competition Landscape

  • Detailed profiles of providers of digital ad spending have been provided in the report to evaluate their financials, key product offerings, recent developments, and strategies. Key players operating in the global digital ad spending market are
    • Atheer, Inc.
    • Barco N.V.
    • Blippar.com Ltd.
    • Curiscope
    • Dell Technologies Inc.
    • EON Reality, Inc.
    • Google, LLC
    • Honeywell International, Inc.
    • HP Development Company, L.P.
    • HTC Corporation
    • Magic Leap, Inc.
    • Manus Machinae B.V.
    • Microsoft Corporation
    • Nokia Corporation
    • Oculus VR LLC
    • Qualcomm Incorporated
    • Samsung Electronics Co., Ltd.
    • Semcon
    • Sony Interactive Entertainment LLC
    • Vuzix Corporation

Digital Ad Spending Market: Key Developments

  • Key providers of digital ad spending, such as Google LLC, Facebook Inc., Microsoft Corporation, Twitter Inc., and Alibaba.com, are focusing on the development of cost-effective and compact digital ad spending to attract more customers. Additionally, players active in providing digital ad spending are focusing on inorganic growth strategies such as strategic collaborations and merger & acquisition activities with technology partners to improve their offerings and market reach. Some other key developments in the global digital ad spending market are highlighted below:
    • In March 2021, Microsoft Corporation expanded its partnership with Zirca Digital Solutions, a digital advertising and content solution provider, to accelerate Bing advertising growth in India
    • In November 2020, AdColony, Inc. collaborated with Anzu.io to introduce in-game advertising solutions across display and video to brands and agencies
    • In May 2020, Google LLC acquired DoubleClick, Inc., a provider of digital marketing technology and services to rebrand its ads platform
  • In the global digital ad spending market report, we have discussed individual strategies, followed by company profiles of providers of digital ad spending. The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the global digital ad spending market.

Digital Ad Spending Market – Scope of Report

A latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global digital ad spending market to accurately gauge its potential future development. The study presents detailed information about the important growth factors, restraints, and key trends that are creating the landscape for the future growth of the digital ad spending market, to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the digital ad spending market is expected to progress during the forecast period of 2021-2031.

The report offers intricate dynamics about the different aspects of the digital ad spending market that aids companies operating in the market in making strategic development decisions. TMR’s study elaborates on the significant changes that are highly anticipated to configure the growth of the digital ad spending market during the forecast period. It also includes a key indicator assessment to highlight the growth prospects of the digital ad spending market, and estimates statistics related to the market progress in terms of value (US$ Bn).

The study covers a detailed segmentation of the digital ad spending market, along with country analysis, key information, and a competitive outlook. The report mentions the company profiles of key players that are currently dominating the digital ad spending market, wherein various development, expansion, and winning strategies practiced and executed by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Digital Ad Spending Market

The report provides detailed information about the digital ad spending market on the basis of comprehensive research on various factors that play a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the digital ad spending market, so as to help them make successful strategies and take target-driven decisions.

  • Which regions will continue to remain the most profitable regional markets for digital ad spending market players?
  • Which factors will induce a change in demand for digital ad spending during the assessment period?
  • How will changing trends impact the digital ad spending market?
  • How will COVID-19 impact the digital ad spending market?
  • How can market players capture low-hanging opportunities in the digital ad spending market in developed regions?
  • Which companies are leading the digital ad spending market?
  • What are the winning strategies of stakeholders in the digital ad spending market to upscale their position in this landscape?
  • What will be the Y-o-Y growth of the digital ad spending market between 2021 and 2031?
  • What are the winning imperatives of market frontrunners in the digital ad spending market?

Research Methodology – Digital Ad Spending Market

The research methodology adopted by analysts to compile the digital ad spending market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the industry-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the digital ad spending market.

During the primary research phase, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of data obtained through the interviews of genuine sources, analysts have emphasized the changing scenario of the digital ad spending market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the digital ad spending market.

Digital Ad Spending Market – Segmentation

TMR’s research study assesses the digital ad spending market on the basis of ad format, platform, enterprise size, end user, and region. The report presents extensive market dynamics and progressive trends associated with different segments, and how they influence the growth prospects of the digital ad spending market.

Ad Format
  • Display Ads
  • Social Media
  • Native Advertising
  • Search Ads
  • Video Ads
  • Others
Platform
  • Mobile
  • Desktop
  • DOOH
Enterprise Size
  • SMEs
  • Large Enterprise
End User
  • Retail & eCommerce
  • BFSI
  • Automotive
  • IT & Telecom
  • Media & Entertainment
  • Healthcare
  • Government
  • Transportation
  • Others
Region
  • North America
  • Europe
  • Asia Pacific
  • Middle East & Africa
  • South America

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Digital Ad Spending Market