Global digital advertising market to reach $980.2 billion in 2026, report
The global digital advertising market reached a value of nearly $486.0 billion in 2021, having grown at a compound annual growth rate (CAGR) of 18.5% since 2016. The market is expected to grow from $486.0 billion in 2021 to $980.2 billion in 2026 at a rate of 15.1%. The market is then expected to grow at a CAGR of 12.8% from 2026 and reach $1793.6 billion in 2031.
Growth in the historic period resulted from the strong economic growth in emerging markets, increased internet penetration, government initiatives in developing economies, rising penetration of e-commerce, increased availability of mobile devices, rapid development in technology, an increase in social media usage and the impact of COVID-19.
Going forward, increasing advertising expenditure by end-use industries, rising urbanization, increasing adoption of 5G networks and the internet of things (IoT) will drive market growth. Factors that could hinder the growth of the digital advertising market in the future include stringent regulations, intense competition, security challenges and data localization.
The digital advertising market is segmented by platform into mobile ad (in-app and mobile web), desktop ad, digital TV and other platforms. The desktop ad market was the largest segment of the digital advertising market segmented by platform, accounting for 43.4% of the total in 2021. Going forward, the digital TV segment is expected to be the fastest growing segment in the digital advertising market segmented by platform, at a CAGR of 15.3% during 2021-2026.
The digital advertising market is also segmented by ad format into digital display ad, internet paid search, social media, online video and other ad formats. The internet paid search market was the largest segment of the digital advertising market segmented by ad format, accounting for 30.5% of the total in 2021. Going forward, the online video segment is expected to be the fastest growing segment in the digital advertising market segmented by ad format, at a CAGR of 20.5% during 2021-2026.
The digital advertising market is also segmented by industrial vertical into media and entertainment, consumer goods & retail industry, banking, financial service & insurance, telecommunication IT sector, travel industry, healthcare sector, manufacturing & supply chain, transportation and logistics, energy, power, and utilities and other industrial sectors. The banking, financial service & insurance market was the largest segment of the digital advertising market segmented by industrial vertical, accounting for 23.6% of the total in 2021. Going forward, the media and entertainment segment is expected to be the fastest growing segment in the digital advertising market segmented by industrial vertical, at a CAGR of 18.3% during 2021-2026.
