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Online Advertising

Global online Advertising Expected to Reach $1,089bn

A rise in expenditure on digital media across various industries and a surge in popularity of streaming platforms is driving the growth of the global internet advertising market, according to new data.

A new report from Allied Market Research pegged the global online advertising market at $319 billion in 2019, growing to hit $1,089 billion by 2027, equivalent to a CAGR of 17.2% over the forecast period.

The report cautions that rising adoption of ad-blockers has restrained the growth to some extent, but that the emergence of advertising automation and a rise in adoption of identity-based pay-per-click (PPC) marketing are projected to pave the way for lucrative opportunities in the coming years.

Specifically, it says the impact of COVID-19:

  • Increased use of social media leading to rising drift to resort to social media platforms to endorse various media content with the target audience, which boosted the global market for Internet advertising.
  • That trend is likely to continue post-pandemic as well, since advertising of media and entertainment content over Twitter, Facebook, and Instagram has almost become a new drift in the recent times.

The global internet advertising market report is analyzed across platform type, ad format, pricing/revenue model, enterprise size, industry vertical, and region. Based on platform type, the mobile segment accounted for nearly two-thirds of the total market share in 2019 and is expected to rule the roost by 2027. The same segment would also manifest the fastest CAGR of 18.9% during the forecast period. 

Based on pricing model, the performance-based segment garnered more than half of the total market revenue in 2019 and is expected to lead the trail by 2027. At the same time, the hybrid segment would manifest the fastest CAGR of 22.7% throughout the forecast period.

Based on geography, North America held the share in 2019, holding around two-fifths of the global market. The market across Asia-Pacific, on the other hand, would cite the fastest CAGR of 21.6% from 2020 to 2027. The report also analyzes the market growth across LAMEA and Europe.

Booking.com leads the big spenders for PPC in the travel sector

A small group of online travel agents, including Booking.com, OnTheBeach.com and Trivago, dominated paid search in the first quarter of 2018.

Each of the aforementioned firms spent £7 million+ on search through Google (on the keywords monitored), with Booking.com splashing out almost £20 million, according to research by Kantar Media.

The study – which uses data from Kantar Media’s Digital Advertising Intelligence Solution, combining insights on both pay per click and organic search/display ad spend – also identified TripAdvisor as the clear leader when it came to organic search in the first three months of the year.

TripAdvisor saw over twice as many impressions and almost twice as many clicks as Lastminute.com, its nearest rival in the travel sector, with an estimated PPC value of over £120 million. Of the three biggest PPC spenders, only Booking.com features amongst the top six sites for organic search impressions.

Accommodation tops the keyword charts, but the battleground is for cheap holidays

‘Hotels’ was the keyword with the highest spend during the three-month period, with businesses spending an estimated total of £8,504,262, over seven times more than on the next most invested-in keyword, ‘air bnb’.

Booking.com in particular made huge investments in hotel related search terms. The site’s top ten keywords for both spend and estimated PPC value in organic impressions all contained the word ‘hotel’ or ‘booking’, accounting for a total spend of around £4.8 million.

Outside of accommodation, the key battleground for PPC in the travel sector is around low-cost breaks. ‘Cheapest holidays’, ‘cheap holidays’ and ‘cheapest flights’ all feature among the 20 most sought-after travel related keywords, accounting for almost £2 million in spend between January and March this year. 21 separate advertisers were spending on the keyword ‘cheapest holidays’ and 19 on ‘cheap holidays’, making them some of the most competitive keywords in the industry. In comparison, for all the spend on ‘hotels’, the keyword was only contested by 14 advertisers.

Richard Poustie, CEO, Kantar Media UK, commented: “Both search and display advertising are incredibly competitive in the travel sector, especially in the first quarter of the year, and this is reflected in the huge investments brands make in this space. It’s important, therefore, to remember that spend in itself is only one part of the campaign – if brands want to get a good return on their advertising investment, it is vital that there is consistency across their online search and display, and that their chosen search terms complement their display advertising.

“In such a competitive space, being able to see what competitors are investing in – across both search and display – and to understand why, will help businesses tailor their own advertising strategy in order to stand out from the crowd and to continue to attract consumer spend.”

Online ads over take TV commercials for complaints

The Advertising Standards Authority has revealed that a record number of ads were amended or withdrawn in 2017, with online advertisements sparking more complaints than TV commercials for the first time.

In its annual report the body highlighted that some 7,099 ads were amended or withdrawn, while it provided advise and training to 389,289 businesses.

Other key findings include:

  • 27,138 complaints were resolved about 19,398 ads – a 14 per cent increase in cases compared to the previous year.
  • The internet overtook TV as the most complained about medium – 10,932 complaints about 9,951 online ads (TV: 9,466 complaints about 4,666 ads).
  • The ratio between internet cases and TV cases remained comparable with the previous year at around 2:1.

“We want to make sure ads are responsible without consumers necessarily having to complain to us,” said the ASA’s chief executive Guy Parker. “By being more proactive, we’ve secured the amendment or withdrawal of more ads than ever before. At the same time, we’ve delivered a record amount of advice and training to help businesses get their ads right before they run. Our approach is helping make ads more responsible, which is in the best interests of consumers, businesses and wider society.”

To view the full report, click here.

Are Brits over-critical of online advertising?

A recent study published by the digital marketing software provider, Adobe, has indicated that UK consumers are among the most critical when it comes to online advertising, Marketing Week reports.

It found that 27 per cent of UK-based consumers believe, within the last three years, digital ads have ‘got worse’, ahead of France (22 per cent); the US (20 per cent); and Germany (18 per cent).

Product marketing manager at Adobe, Julia Soffa, commented on how ‘cultural reasons’ could be down to the UK’s criticism of online ads: “The volume of advertising and opportunities to be targeted by a brand are higher in the UK than the US. People in the UK see more ads and there are more touchpoints so they are more likely to be critical. Generally Europeans are more sensitive than Americans to being bombarded by advertising.”

Furthermore, 54 per cent of UK consumers describe online advertising as ‘ineffective’, compared to Germany (52 per cent); France (51 per cent); and the US (43 per cent).

 

Read more on the research here