LONDON--(BUSINESS WIRE)--According to the latest market study released by Technavio, the global advertising market is expected to grow at a CAGR of close to 6% during the forecast period.
This research report titled ‘Global Advertising Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecasts for various market segments and all geographical regions.
Social media advertising is on the rise, making it mandatory for major vendors to have a significant online presence. Engaging the customers and measuring the performance of an ad is easy on social media. Advertisers, thus, regularly monitor the performance of social media advertisements to justify the company's investment and request an additional budget for ad-spending.
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The report categorizes the global advertising market into four major segments based on medium of advertising. They are:
- TV advertising
- Digital advertising
- Print advertising
- Out-of-home (OOH) advertising
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Global TV advertising market
The global TV advertising market is expected to reach USD 281 billion by 2020, growing at a CAGR of more than 4% during the forecast period. TV ads are the largest segment of the global ad spending market. They are the most viewed, influential, and favored advertising media in the world. TV advertising reaches mass audiences, and thus will continue to be the dominant advertising segment, despite the growing popularity of digital platforms.
“One of the major trends in the market is TV ads with digital touch points. In this, the TV ads include the address of their digital presence in the content so that the viewers can know more about the campaign and product,” says Ujjwal Doshi, a lead analyst at Technavio for publishing and advertising research. Including a digital touch point in the TV ad increases its effectiveness by 16%. With online purchases growing at a higher rate than in-store purchases, marketers see this as an opportunity to boost the effectiveness of TV commercials.
Advertising is a premium source of revenue for TV broadcasters. TV channels need to increase their market share among viewers to attract companies to advertise on their channels. This is predominant in new TV channels who will have to engage their target audience before advertising revenue takes effect.
Global digital advertising market
The global digital advertising is expected to reach USD 280 billion by 2020, growing at a CAGR of close to 11% during the forecast period. Digital media is transforming the advertising industry. It is currently the fastest growing marketing technique, and will continue to grow during the forecast period. Earlier, only large corporations opted for digital marketing. However, many start-ups and SMEs have started adopting the digital marketing technique due to the affordability of the platforms. One of the prime factors for the growth of the market is that digital platforms allow user interaction. Moreover, the customer engagement rate and success of these digital campaigns are relatively higher than other marketing strategies.
“Digital advertising campaigns also help to acquire new clients and customers. Posts and updates from companies on social media provide them with business insights and the latest news on product launches. Digital platforms like social media are, thus, rapidly becoming important venues for effectively engaging with the target audience,” says Ujjwal.
Digital advertising, however, is a long-term strategy. ROI can take anywhere between several months to a couple of years before a company benefits from the increased customer loyalty and sales. This factor also makes it difficult for the companies to quantify ROI or forecast profits.
Global print advertising market
The corporate sector has reduced their print ad spending, which has further resulted in newspaper companies facing budget constraints. Subscription and renewals too have dwindled significantly. However, print advertising does offer several advantages. One of the major advantages is that it sets a standard for advertising in the market. Print advertising holds a niche in the market as very few vendors can afford it. With region specific newspapers, print advertising can also target specific audience effectively. Advertising in newspapers and magazines require large investment of time, personnel, and money. The cost of a print ad can be significantly reduced if the same content is used in multiple advertising mediums.
Ad-spend in the print media is rapidly declining. It accounts for approximately 21% of total advertising expenditure. As of 2015, the global print advertising was valued at close to USD 126 billion. It is expected to reach USD 135 billion by 2020, growing at a CAGR of more than 1% during the forecast period.
Global OOH advertising market
The global OOH advertising is expected to exceed USD 48 billion by 2020, growing at a CAGR of more than 4% during the forecast period. OOH is one of the oldest advertising mediums, which was deemed as inflexible because of its physical nature and its inability to hit the target. However, in the last 10 years, the medium has become more flexible with technological advances such as increasing adoption of digital outdoor advertising with the ability to interact and engage with customers. Among all the different types of advertising, OOH is the only medium which has complete reach over the target audience. With an increasing number of people spending more time out of their homes, OOH media delivers the brand's message continually across consumers of various demographics in their daily routine.
One of the major factors influencing the effectiveness of an OOH advertising campaign is its placement. It varies from that of a billboard on the road to the placement of an ad during the break at Super Bowl stadium.
Another challenge is the low amount of ad-spent on OOH media for the amount of time individuals spend outdoors. An individual is exposed to outdoor advertising nearly 24% of the time, but only about 7% of the total advertising expenditure is dedicated to this segment. However, during the forecast period, the disparity between time spent and ad-spend for outdoor advertising is expected to reduce.
The top vendors highlighted by Technavio’s media & entertainment research analysts in this report are:
- American Express
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