Online Advertising: A Global Strategic Business Report
San Jose, CA (Vocus/PRWEB) February 07, 2011
Online advertising, an integral part of the digital media revolution, provides marketers with a potent, yet economical media for promotion of their products and services. Online advertising has steadily evolved as the most simple, efficient, and cost-effective advertising medium. The Internet generated advertising opportunities with the development of a host of facilities including image display, video, audio and interactive capabilities. Unlike the regular media ads, Internet advertising is media rich with a combined effect of audio and animated video to attract online viewers. Currently, the US, Europe and Asia-Pacific comprise the largest global markets for online advertising. The advantageous interactivity and measurability features of Internet ad campaigns are the major drivers of growth for the industry. The Internet is more measurable and therefore facilitates greater accountability and improved understanding of visiting audience and provides better tools for monetizing advertisement campaigns. The fact that user traffic can be tracked in online advertising is increasing its adoption by advertisers. However the methods used for monetizing online ad campaigns are not completely foolproof and most of time service providers end up either over-counting or under-counting visiting audience. The latest ’cost-per-revenue’ metric for digital marketing which is known to provide better financial results to advertisers is perhaps a step forward towards providing enhanced return on investment for advertisers.
Considerable growth in online ad spending has been observed in the past. Major factors fueling the growth include overall increase in advertising budgets and generous allocation of budget to online ads. In addition, augmented prices for direct response vehicles and an increase in the number of advertising agencies incorporating online media into their integrated campaigns has also helped to boost market prospects. On-line casinos and adult entertainment companies were the first to explore the online medium but today, traditional advertising agencies are beginning to invest more in online advertising. However, despite all these positive indicators, the overall share of online ads in a typical marketing budget continues to be meager, and is likely to grow only as online advertising gains media interest. Demographic profiles of online users also play a vital role in strengthening the online advertising market. The global online advertising industry is characterized by continuous transition from conventional advertising media to the most dynamic digital media.
The advertising industry in general, akin to several other industries, suffered from the negative impact of recession with many advertisers cutting down their expenditure on advertising and promotion. The impact was obvious in the year 2009 as the fast paced growth in the industry that continued until 2008 took a breather in 2009. The year 2009 witnessed some of the worst declines the industry had witnessed in a long time, with revenues plunging into negative rates of growth and the industry coming to a standstill. The global online advertisement market which had been touching dizzying heights, with extremely high, double digit growth rates for the last several years, literally came crashing down in 2008, and further nosedived to negatives in 2009. Developed markets of North America, Japan and Europe were affected most by the downturn, displaying negative growth rates ranging between 4%-5% for the period 2008-09. In particular, the Canadian spending on online advertisement, which recorded a massive 70.5% growth rate in 2006, eroded steeply to 30.4% in 2008 and -4.9% in 2009. Ad revenues for the leading web-advertising players namely, Google, Yahoo!, Microsoft, and AOL declined during the second quarter of 2009.
Nevertheless, global advertising industry regained momentum from 2010 onwards, albeit at a cautious pace, with the recession loosening its grip on most of the world economies. Although the larger advertising industry suffered from the negative impact of recession, the smaller, niche online advertising segment exhibited above-average growth except during 2008-2009. The recessionary impact on the on-line advertising market during 2009 was offset by increased advertising spends by retail advertisers on display and search ad formats.
The US is the clear market leader, constituting the single largest market for online advertising, as stated by the new research report on Online Advertising. Asia-Pacific and Europe follow at a cautious distance as the next significant global markets. In growth terms, the Asia-Pacific market is forecast to surge ahead of the other regional markets at the overall fastest compounded annual growth rate of 15% over the analysis period. The Search format represents the largest market segment. The Search format is also projected to sail ahead at the fastest CAGR of more than 10% through 2015.
Key participants profiled in the report in the market include 24/7 Real Media Inc., AOL Inc, Baidu.com Inc., Copernic Inc., DoubleClick Inc., Eniro AB, Google Inc., IAC/InterActiveCorp., InfoSpace Inc., MSN, Sina Corporation, Sohu.com Inc., Tencent Inc., Tom Online Inc., TradeDoublero AB, ValueClick Inc., and Yahoo Inc.
The research report titled “Online Advertising: A Global Strategic Business Report” announced by Global Industry Analysts, Inc. provides a comprehensive review of current market trends, industry overview, product profile, product innovations, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as United States, Canada, Japan, France, Germany, United Kingdom, Italy, Spain, Sweden, Rest of Europe, Asia-Pacific, Latin America and Rest of World. Market analytics are provided in value (US$) terms for modes/formats including Search, Display and Other online advertising modes and formats. The study also provides historic data for an insight into market evolution over the period 2000 through 2006.
For more details about this comprehensive market research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Web Site: http://www.StrategyR.com/