Global Online Advertising Industry: An Analysis

Global Online Advertising Industry: An Analysis

The global online advertising industry has witnessed the rapid emergence of social networking sites and is growing rapidly despite the economic slowdown. The growth of this industry is being driven by increasing internet users, rising awareness and growing broadband subscription rate and ecommerce, which is playing a key role in this industry. In coming years online Ad spending is expected to overtake the TV advertising market.

The industry is divided into various segments but mainly three segments (search, display and classifieds) represent the whole industry. Rich media is a new segment recently entered in the online Ad industry, caters to a small portion of the market whereas search, display and classifieds serves almost 80% of the online Ad industry. There are various revenue models, out of which pay-per-impression and pay-per click are the most common among others.

In terms of online Ad spending by geography, UK, Netherlands and the pan-European sector lead the market but in terms of internet Ad budget allocation France, Germany, Spain and Italy have a strong presence. United States is the most developed market for the advertising industry. In Canada, internet advertising accounted for almost one third of total advertising market.

The report analyses the global online advertising market with a complete description of its segments. It also defines the market by geography such as, U.S. Canada, UK, Japan and China with a description of revenue models and expenditure models. The report discusses various industry trends and driving factors, which are giving shape to the industry. Future trends outline the expected market growth and changes. The report highlights the competition prevailing in the market and profiles major players with their business description and strategies.

The report also talks about the future outlook of the industry and its growth. By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the industry. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.

1. Online Advertising Industry: An Overview

2. Advertising Industry Structure

Market Value by Region
Growth Rate

3. Worldwide Internet Advertising Market

3.1 Market Size
3.2 Online Advertising Spending

4. Online Advertising Market: United States/Canada

4.1 Spending Model
4.2 Online Revenue Models
4.2.1 Revenues by Quarter
4.3 Canada
4.3.1 Revenue Model

5. European Online Advertising Market

5.1 Online Advertising Expenditure
5.2 United Kingdom
5.2.1 Online Advertising Expenditure
5.2.2 Market Segmentation

6. Asian Online Advertising Market

6.1 Japan
6.2 China

7. Growth Drivers

7.1 Growing Internet User Base
7.2 Rising Broadband Penetration
7.3 New Advertising trend through Social Networking Sites
7.4 E-Commerce Driving Online Ad Demand

8. Industry Trends

8.1 Online Advertising Industry Prospects in Singapore
8.2 Online Advertising Industry in Switzerland
8.3 Decline in Online Advertising Industry
8.4 Online Advertising Barriers in China
8.5 Future Trends
8.4.1 Global Market
8.4.2 United States
8.4.3 UK

9. Competitive landscape

10. Company Profiles

10.1 Google Inc.

Overview
Business Strategies
Extensive Product Offering & acquisitions
Comprehensiveness & Global Access
Word-of-mouth Publicity
Early Adopter & Innovations

10.2 Yahoo Inc.

Overview
Business Strategies
Broad Range of Services
Worldwide Presence

10.3 AOL LLC

Overview
Business Strategies
Global Expansion
Accessibility Policy

10.4 MSN

Overview
Business Strategies

11. Industry Outlook

11.1 Market Forecast
11.2 Forecast Methodology
11.2.1 Dependent and Independent Variables
11.2.2 Correlation Dependent and independent Variables
11.2.3 Regression Analysis



List of Tables



Global Advertising Market by Region (2006-11E)
US Advertising Spending & Estimates by Medium (2007-10E)
Total Online Ad Spending in US (Pure-Plays vs. Traditional Media), 2007
EU-15 Market Share by Media (2004-09)
Share of UK Internet Advertising Expenditure by Industry (H205/H207)
UK Internet Advertising by Display Format (H206/H207)
Share of UK Internet Advertising Expenditure by Display Format (2006-07)
UK Property Advertising Market by Medium (2006-07)
Online Penetration of UK Classified Advertising (2007)
China Online Ad Market Statistics (2001-11E)
Sales through E-Commerce in US (2005-07)
Top Ad Networks Comparison (March 2008)
Top Portals as % of Total US Online Ad Spend (2004-08)
Dependent and Independent Variables (2001-08)
Correlation Analysis Table
Model Summary – Coefficient of Determination
Regression Coefficients Table



List of Charts



Online Search Engine Value Chain
Global Split of Major Service Sector Share by Revenues (2007)
Global Ad Spending Growth by Medium (2006-10E)
Worldwide Internet Advertising Revenue (2001-08)
Online Advertising by Industry (2007)
Internet Advertising Expenditure by Country (2006-08)
Global Online Ad Spending (2006-07)
US Internet Advertising Spending by Format (2007)
US Internet Advertising Revenue Model (2007)
Annual Revenue for Online Ad Industry in US (2001-08)
Quarterly Revenue Comparison (Q407/Q408)
Internet Ad Revenues by Pricing Model (2004-08)
Canada - Advertising Revenue Distribution by Medium (2007)
Total Online Purchase in Canada (2002-07)
UK - Advertising Spend by Media (2007)
UK Online Advertising Expenditure & Share of Ad spend (2006-08)
UK Online Market Segments (2007)
Online Advertising Market in Japan (2002-11E)
China's Online Ads Market by Segment (2008)
Online Ads Market Segments Share in China (2001-12E)
Global Internet Users (2001-10E)
Number of Internet Users in China (2001-10E)
Global Broadband Adoption (2006-07)
Broadband Subscribers (2004-12E)
Broadband Penetration Rate by Country (2007)
US Online Social Network Ad Spending (2008-13E)
Influence of Websites in User Purchasing Decision (2007)
Worldwide E-commerce Growth & Forecast (2006-11E)
Online Advertising in Switzerland by Segments (2006)
Online Ad Spending in Switzerland (2002-06)
Internet Advertising Barriers
Global Advertising Expenditures by Medium (2010E)
US Online Ad Spending by Type (2008-12E)
US Online Video Advertising Spending (2007-13E)
Forecast of UK Internet Advertising Expenditure (2008-12)
China Online Players Market Share by Revenues (2008)
Google Revenue Comparison (2004-08)
Yahoo Revenues by Geography (2006-08)
Online Advertising Industry Forecast (2008-10E)