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Online Advertising Market: Global Industry Analysis


Online Advertising is used to make usage of the cyberspace to disseminate the ideas and intentions of launching a brand, product or service for the masses to bridge easily. This is the best way to reach the customers as it is intangible and would stay for years after the period that you have already run a campaign. This campaign could be promotional or informative but is basically used to regulate the message to the customers. The global industry for online advertising has widened in the previous years to an extent that it has largely benefitted the organisations and has made marketing easier than ever before. Online Advertising Market consists of email marketing, search engine optimisation, search engine advertising, social media marketing and social media optimisation.

Online advertising market
Ad spending new

Online Advertising Market in India

The online advertising market in India is widening day by day as the scope for online advertising is rapidly growing. With the people digging more and more into advertising through ads, this gets us in a toll of understanding as to how big the online advertising market can become in the next few years.

Online advertising market
Video advertising

In the year 2015, the investments reached up to ₹5,200 crore and have been growing since then. In terms of volume, e-commerce is growing immensely and the proportion spent on e-commerce advertising in our country is ₹1,040 crore, followed by telecom ₹780 crore; Banking, Financial Services and Insurance ₹728 crore; and FMCG ₹676 crore, the report by Internet and Mobile Association of India (IAMAI) and IMRB International said.

The education sector is also spending money on online advertising and tourism sector is running the business majorly with the help of digital marketing making it a competitive space for promotion. Nevertheless, the Banking, Financial and Insurance sector has spent 40% on digital marketing as compared to e-commerce, telecom and travel.

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Uses of Online Advertising and Marketing

The brainchild behind integrating online advertising and marketing into one’s business is to benefit from it and generate leads. Below are the mentioned uses of the same that’ll help you in leveraging you in a better way.

1) Reach

Online advertising is one way of digital marketing that gives you scope to reach more and more people in a very short period of time and helps in generating leads. People spend so much of their worthy time online that we as marketers have a good chance to catch them there when they are actually not busy. People turn up to online portals for watching TV shows, Music and what not. At this point of time, they are not busy and can be accessed easily. You can market your product or service through online marketing very easily.

2) Brand Awareness

Online marketing gives us a chance to create a virtual image for the brand which is very important for the brand to succeed and prosper. This is going to create an empathetic sense in minds of our target audience on the basis of what our campaign says about us. This is a convenient and easy way to reach people and create a brand image for your product or service.

3) Space for Creativity

It also gives you space for creativity, as marketing your product or service online is easier and doesn’t require a lot of money to regulate and explore. This also lets us play with content and hence makes it easier for the brand to gain positive attention and generate more leads in a short period of time.

Size of Online Advertising and Marketing in India

The advertising industry in India has seen all stages, from budding to becoming large and is growing digitally as well. It is also the second largest advertising market in Asia after China. It is estimated that by the year 2018, the share of the money spend in for online advertising is to grow and be a major part of contributing to the GDP.

The Indian government has also supported the sector to grow and comprehend better techniques for the organisations to move ahead. It is said that the digital market of a nation has the power to make or break and organisation.


Print contributes a significant portion to the total advertising revenue, which is near about 41.2%, TV contributes nearly 38.2% and digital marketing contributes 11% to the total revenue of the market share of this sector. Radio, Cinema and outdoor contributes to the remaining 10%.

Indian digital advertising market is expected to grow and make an investment of Rs 25,500 crore by the year 2020 which is a big amount and hence shows the growth pace of the industry. Also, the internet’s total share in advertising revenue is going to grow two times more by the year 2020. Online advertising is also significantly growing and one needs to understand the intricacy and importance of this sector. Also, the sector is growing at a pace that one might not be able to anticipate the growth rate presently as it could go higher than what we thought.

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Forecast for the Year 2020

The data is showing a growth in investment from 229.25 billion U.S. dollars in 2017 and that it would grow to 335.5 billion by 2020.

Online advertising market
Digital advertising

The Digital advertising spending worldwide which includes both desktop and laptop computers as well as mobile devices – stood at an estimated at 194.6 billion U.S. dollars in 2016. This figure is forecast to constantly increase in the coming years, reaching a total of 335 billion U.S. dollars by 2020. Mobile internet advertising is a heavily invested sub-sector of the digital advertising industry. Mobile internet advertising spending is forecast to increase from an estimate of 109 billion U.S. dollars in 2016 to just over 247 billion U.S. dollars in 2020. Following this pattern, mobile advertising spending in the U.S. is also forecast to grow in the coming years. Mobile ad spending in the U.S. is projected to approximately double between 2015 and 2019.

How Google and Facebook have Taken Over the Digital Ad Industry

1) Google

Online advertising market
Google logo

Google has been one of the key contributors in making the online advertising sector this and big. People use Google ads and PPC to promote their business, product or service on the internet. This has made the dream of many organisations to flourish immensely in a short span of time possible. Businesses have integrated online advertising as part of their marketing strategy as the global population is using the world wide web 24*7 which makes it even easier to reach the audience and generate leads.

2) Facebook

Online advertising market
Fb logo

As far as Facebook is concerned the company has more than 1.5 billion users, need I say anything more? Also, it tracks and sees the clicks and commands of users that any media company could easily make changes in its strategies accordingly. Advertisers will work with them even if they go wrong with the analysis as there is a lot of users using Facebook like almost all the time.

3) Twitter and Snapchat

Twitter and Snapchat are also trying to compete with Google and Facebook but they are still far behind in the game of online advertising. So is the future for media companies simply one of deciding which of two giant walled gardens they wish to build a majority of their business on, or pay rent to? For the moment, at least, that appears to be the case.

The above-mentioned statistics and data shows the growing potential of the digital industry and hence how businesses can benefit from it is another broad arena which can be discussed. If you found our blog interesting or if you would like to contribute something.

Check out our post on Growth of Digital Marketing Industry in India to analyze Online Advertising market & make your move!

Social Media can do a lot for your business growth if used the right way. To understand the complete manner in which Social Media can help you grow, enroll in our Social Media Marketing Course.

Avatar of malika sanon
Malika Sanon

4 thoughts on “Online Advertising Market: Global Industry Analysis”

  1. Avatar of waseem khan
    waseem khan

    Hi Malika Sanon you are right about digital marketing because online marketing becoming famous day by day and it makes easy to reach your customer and anyone can start marketing on the internet with low budget..

  2. Avatar of gaurav heera
    Gaurav Heera

    Digital marketing become a part of business, without digital marketing no business can grow because nowadays everyone first open website of company to see details and if company don’t have website it give bad impact to user, Digital marketing is effective and also start with low budget and easy to reach customer and many more….your article is wonderful

  3. Avatar of karl honton
    Karl Honton

    The online advertising term is broadly categorized on the basis of types of advertising which includes search engine optimization. I’mhappy that you shared this helpful information with us.

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