Global Advertising Market 2016-2020
Advertisements include any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. It is an effective tool used in business to differentiate goods and services in a meaningful way to connect the consumer with the brand.
Technavio’s analysts forecast the global advertising market to grow at a CAGR of 5.80% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global advertising market for 2016-2020. To calculate the market size, the report considers the advertising spend by businesses.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Advertising Market 2016-2020
Technavio recognizes the following companies as the key players in the global advertising market: American Express, Ford, Pfizer, Procter &Gamble, and Verizon Communications.
Other Prominent Vendors in the market are: AT&T, Fiat¸ Comcast, General Motors, Johnson and Johnson, JP Morgan Chase, L'Oréal, Time Warner, Toyota, and Walt Disney.
Commenting on the report, an analyst from Technavio’s team said: “Increased targeted options will be a key trend for market growth. The digital medium gathers a large amount of user information, which can be used as an effective tool to target audience. Stretching beyond general demographic and geographic barriers, digital media advertising has opened the door for interest, behavioral, and connection-based targeting methods.These advanced targeting options increase the relevance of advertisements to the users and provide a high level of personalization that cannot be achieved on other advertising channels.”
According to the report, high penetration of mobile devices will be a key driver for market growth. Digital media advertising on mobile devices has been offering a better ROI than desktop computers since 2012. This segment is anticipated to grow during the forecast period due to the rising number of digital media users globally. Personalized campaigns based on the user information, search words, liked pages, and frequent interactions among online acquaintances are the primary factors that increase the effectiveness of these ads. In addition, the social media platforms also increase the effectiveness of the ads. Globally, an estimated 2.2 billion users are active on a monthly basis on social media and more than 72% of this population is on Facebook.
Further, the report states that one of the challenges for the market will be rapid declining of print advertising. Print advertising is declining rapidly, and the major factor is the increasing adoption of the digital platforms for advertising. The print medium is unable to compete with the rapidly digital medium, which is eating into the market share of print advertising. For instance, the classified ads — a major segment for revenue in print advertising — was not able to compete with Craigslist, which provided a free and new model of classified ads using the digital medium. Major media vendors such as Time and New York Times have significantly cut down on their budgets on the print segment. In addition, with the advent of e-papers and e-magazines, the sales of print newspapers and magazines have also declined rapidly.
American Express, Ford, Pfizer, Procter &Gamble, Verizon Communications, AT&T, Fiat¸ Comcast, General Motors, Johnson and Johnson, JP Morgan Chase, L'Oréal, Time Warner, Toyota, and Walt Disney.