Global Online Advertising Industry Analysis
The global online advertising industry continues to take up market share from the decline of the newspaper industry, which traditionally played a major role in local-scale promotion. Online advertising is also benefiting from the economic recession as companies seeking to tighten their budgets are cutting back on advertising costs by moving from traditional mediums toward digital means.
The world digital advertising market growth is fuelled by widespread internet penetration across established and developing markets. More companies are opting for this kind of solutions to benefit from the medium’s simplicity and cost-effectiveness.
Internet Advertising Regional Market Share
The US dominates the online advertising industry, reports Global Industry Analysts. By 2016, it is estimated that close to 90% of local advertising will be accessed through mobile devices such as smartphones, GPS enabled laptops and tablets.
The UK’s internet industry holds the largest share of ad expenditure at a national level when compared with the EU market, with over 30% of overall expenditure dedicated to online media, reports AM MindPower Solutions.
Moving forward, e-commerce industry in Japan is forecast to fuel growth in the country’s global media industry. Japan’s search engine ad market segment continues to expand, driven by spendings from operators in the sectors of travel, distribution, real estate and finance. The display sector is expected to lose market share, partly due to public sector cutbacks. The mobile sector is expanding at the same rate as the online segment, driven by smartphone penetration, advertising by content providers and rising numbers of advertisers on social networking sites.
China’s online advertising industry is set to outpace print media advertising in the coming years. Baidu.com leads the country’s search engine segment, with Google in second place, reports AM MindPower Solutions. Market growth is being fuelled by China’s vast population, economic expansion, widening advertising budgets as well as increasing activity in online social networking, online video and the e-commerce sector.
Digital Advertising Industry Leaders
Google’s mobile search advertising sector is forecast to reach almost $2.9 billion in 2016, reports Visiongain. Google is also leading the world mobile search sector, accounting for more than 95% of the overall market. The search engine’s success is thanks to the optimization of its services and expertise, and reactivity to accurate market trend foresight.