World Online Advertising Sector Analysis

• Publication date: May 2009

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

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

The market is divided into various sectors but mainly three sectors (search, display and classifieds) represent the whole market . Rich media is a new sector recently entered in the online Ad market , caters to a small portion of the industry whereas search, display and classifieds serves almost 80% of the online Ad market . 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 segment lead the industry but in terms of internet Ad budget allocation France, Germany, Spain and Italy have a strong presence. United States is the most developed industry for the advertising market . In Canada, internet advertising accounted for almost one third of total advertising industry .

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

The report also talks about the future outlook of the market 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 market . We employed various significant variables that have an impact on this market and created regression models with SPSS Base to determine the future direction of the market . 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.

Online Advertising Industry in Germany

I. Online Advertising Market : An Overview

II. Advertising Market Organization

Market Value by Region
Growth Rate

III. Worldwide Internet Advertising Industry

III. 1 Industry Value
III. 2 Online Advertising Spending

IV. Online Advertising Industry : United States/Canada

IV. 1 Spending Model
IV. 2 Online Revenue Models
IV. II. 1 Revenues by Quarter
IV. 3 Canada
IV. III. 1 Revenue Model

V. European Online Advertising Industry

V. 1 Online Advertising Expenditure
V. 2 United Kingdom
V. II. 1 Online Advertising Expenditure
V. II. 2 Industry Segmentation

VI. Asian Online Advertising Industry

VI. 1 Japan
VI. 2 China

VII. Market Drivers

VII. 1 Growing Internet User Base
VII. 2 Rising Broadband Penetration
VII. 3 New Advertising trend through Social Networking Sites
VII. 4 E-Commerce Driving Online Ad Demand

VIII. Market Trends

VIII. 1 Online Advertising Market Prospects in Singapore
VIII. 2 Online Advertising Market in Switzerland
VIII. 3 Decline in Online Advertising Market
VIII. 4 Online Advertising Barriers in China
VIII. 5 Future Trends
VIII. IV. 1 Global Industry
VIII. IV. 2 United States
VIII. IV. 3 UK

9. Competitive landscape

10. Industry Player s

10.1 Google Inc.

Overview
Business Strategies
Extensive Product Offering & take over s
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

1I. Future Trends

1I. 1 Industry Projection
1I. 2 Projection Methodology
1I. II. 1 Dependent and Independent Variables
1I. II. 2 Correlation Dependent and independent Variables
1I. II. 3 Regression Analysis



List of Tables



Global Advertising Industry 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 Industry Share by Media (2004-09)
Share of UK Internet Advertising Expenditure by Market (H205/H207)
UK Internet Advertising by Display Format (H206/H207)
Share of UK Internet Advertising Expenditure by Display Format (2006-07)
UK Property Advertising Industry by Medium (2006-07)
Online Penetration of UK Classified Advertising (2007)
China Online Ad Industry 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 Segment Share by Revenues (2007)
Global Ad Spending Growth by Medium (2006-10E)
Worldwide Internet Advertising Revenue (2001-08)
Online Advertising by Market (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 Market 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 Industry Segments (2007)
Online Advertising Industry in Japan (2002-11E)
China's Online Ads Industry by Segment (2008)
Online Ads Industry 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 & Projection (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 Industry Share by Revenues (2008)
Google Revenue Comparison (2004-08)
Yahoo Revenues by Geography (2006-08)
Online Advertising Market Projection (2008-10E)