Global cloud advertising market size to reach $7.2 billion by 2027, report
The global cloud advertising market size is expected to reach $7.2 billion by 2027, rising at a market growth of 18.6% Compound annual growth rate, CAGR, during the forecast period. This is according to a recent report by Research and Markets.
Cloud advertising solutions lay down the foundation for virtual advertising platforms on online and social media platforms for the effective advertisement of brands & services. In the last few years, there is an increase in demand for dynamic optimization of advertisements as well as virtual campaign management process, which is contributing to the high deployment of various cloud advertising solutions among various industries like business service providers, media & entertainment, retail, and others.
Moreover, cloud advertising services help companies at several phases of an advertisement, be it selecting an ad to fix the price whenever the ad is about to reach the end-users. Further, cloud advertising also assists companies to advertise their products in different regions at different levels of online advertising. The cloud advertisement offers a wide range of tools and services related to various segments like business-to-consumer and business-to-business. The cloud advertising market delivers numerous integrated solutions and services that help companies to carry out digital advertising to spread awareness among the people of their products and persuade them to buy one. The growing awareness and increasing adoption of cloud solutions among internet users is expected to surge the growth of the cloud advertising market.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic has created numerous problems in the business domain. Due to the imposition of various government regulations to curb the spread of the virus, companies are forced to adapt and alter their rules and policies. The unavailability of workforce, partial or complete lockdown in various nations, ban of travel activities within or across borders are some of the difficulties faced by the companies' management. All these inconveniences motivated enterprises to adopt advanced solutions and technologies to sustain in the competitive market and thus, the demand for various cloud-based solutions like cloud advertising has increased in the pandemic.
Market Growth Factors:
Targeted marketing and consumer analytics are in high demand
With the development of various latest marketing strategies and models, companies are highly adopting these advanced tools to improve brand loyalty and reach out to more customers across the globe. Marketers are targeting the potential customers sitting at their homes through cloud advertising. Traditional advertising methods have some restrictions but as the technologies are becoming more sophisticated and facilitate the way of advertisers to reach their audience. As a result, companies require some targeted marketing and consumer analytics for the same. This is expected to augment the growth of the cloud advertising market in the coming years.
The increasing influence of internet users and the high usage of digital media
The rising number of smartphone users, high internet penetration, and growing usage of digital media is expected to expand the number of online users across the globe, which is estimated to open new growth avenues for the cloud advertising market over the forecast period. As everything is getting digitalized and smartphones users have the access to high-speed internet, the consumption of digital content has also increased which is expected to create more lucrative opportunities for the key market players.
Market Restraining Factor:
Strict cloud policies and increasing data security concerns
The increasing demand for digital advertising is contributing to the demand for cloud advertising whereas this increased demand is expected to expand the data collection from users through numerous sources. Further, there are several policies and regulations framed by the regulatory bodies to facilitate the high level of security in cloud advertising. Though, such regulations and norms are serving as important safety measures that are rigid in nature, which may impede the growth of the cloud advertising market.
