Growing In-app Advertising to Boost the Internet Ad Spending Market, Reports Technavio

Technavio has published a new report on the global internet ad spending market from 2017-2021. (Graphic: Business Wire)

LONDON--()--Technavio market research analysts forecast the global internet ad spending market to grow at a CAGR of more than 9% during the forecast period, according to their latest report.

The market study covers the present scenario and growth prospects of the global internet ad spending market for 2017-2021. The report also lists retail, automotive, financial services, and electronics, as the four major industry segments.

According to Ujjwal Doshi, a lead analyst at Technavio for publishing and advertising research, “The global Internet ad spending market reaches a large audience with the help of electronic devices such as smartphones, gaming consoles, laptops, and tablets. During the past decade, the market has shifted from high-cost advertising campaigns to low-visibility digital media, such as the Internet. The growth of the broadband infrastructure in developing and developed countries is helping the market to grow further.”

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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global internet ad spending market:

  • Increasing customer base
  • Higher brand recalling capability
  • Growing in-app advertising

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Increasing customer base

Digital marketing campaigns on social media platforms help attract more clients. These platforms are rapidly becoming most conducive to engaging the target audience. Posts and updates from companies on social media provide insights and latest news regarding their business and products.

“Posts on social media platforms, such as Facebook and Twitter, are most likely to be viewed and shared. These shares generate traffic to the company's website and increase familiarity with its services and products. Furthermore, sharing on the social network platforms increases credibility as recommendations from friends and acquaintances are regarded as trustworthy,” says Ujjwal.

Higher brand recalling capability

The probability of brand recall is higher in the case of online ads when compared to other methods of advertising such as TV commercials and billboards. The interaction of online ads with the audience is higher in comparison with other media. Although the audience has an option to skip the ad after a small duration, the users also have the option to interact and respond to the ad, which is not possible in other modes of advertising.

TV commercials can be easily skipped by switching the channels as they are not interactive. It makes them less appealing to the users. In addition, even if Internet ads have no option of skipping, the length of these ads is short, due to which the audience does not hesitate in viewing the complete ad. According to Technavio, Internet ads have an average completion rate of more than 85% as of 2016.

Growing in-app advertising

The use of online platforms and apps has increased with the growing adoption of smartphones and tablets. In 2016, users spent more than 80% of the time on apps and 20% on browsing through the Internet. Owing to the growing use of apps, ad agencies are creating in-app advertisements. Display, pop-up, and scroll ads have become one of the preferred choices by the ad agencies that are included in the apps. These advertisements are being prominently adopted as they have higher sales conversion rates.

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Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770

Release Summary

Technavio market research analysts forecast the global internet ad spending market to grow at a CAGR of over 9% during the forecast period, 2017-2021.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 630 333 9501
UK: +44 208 123 1770