The global cloud advertising market size is expected to grow at a CAGR of 19.6% during the forecast period, to reach USD 6.7 billion by 2026 from USD 2.7 billion in 2021.
Marketing has evolved to a great extent in the past decade; new forms of marketing have taken over with continuously upgrading tools. Marketers can target the specific customer they want from the comfort of their homes.
Outdoor marketing is no longer the only medium to reach the targeted audience; nowadays, marketers can market their products and services to the target audience they like. Different forms of marketing can help end users reach the exact kind of customer they want.
Different types of marketing, such as social media marketing, email marketing, etc., help end users analyze the target audience. Data analytics provide marketers accurate details of their target audience so that advertising can be optimized and lead to efficient results. This increasing demand for targeted marketing and consumer analytics bolsters the growth of the cloud advertising market.
The platform segment is expected to hold a larger market size during the forecast period.
The cloud advertising market, by component, covers platforms and services. The platforms segment is projected to hold the largest market share during the forecast period. Cloud advertising helps companies create, manage, and execute customer engagement to drive revenue growth across industries.
Platforms allow organizations to create personalized and automated web-based marketing campaigns across touchpoints, such as email, social media, web, and mobiles. They manage repetitive tasks associated with campaign follow-ups and send one-pagers and emails at regular intervals. They also provide integrated data, build customer profiles, make instant content delivery and reporting, and help collaborate with other team members.
Platforms have a complete set of marketing tools, such as omnichannel campaign management, content management, data management, testing and personalization, and analytics. They offer capabilities such as AI technology to analyze consumer data in real-time and modify the content to be displayed. Cloud advertising uses data science and machine learning algorithms to boost conversion, visitor engagement, and loyalty.
The public cloud segment is expected to hold the largest market share in 2020
The deployment model segment includes public cloud and private cloud. The public cloud segment holds the largest market share in 2021. Public cloud is built on the cloud computing model, which shares resources (such as CPUs, servers, and racks) among various businesses, depending on the demand. In the public deployment model, various resources, such as applications, storage, virtual servers, and hardware, are available to client enterprises over the internet.
The services offered over the public deployment model are either free or subscription-based. The advantages of using the public cloud include simplicity and ease of deployment. Moreover, the initial investment required for this deployment is minimum, and there are no responsibilities involved in managing the infrastructure.
The public cloud offers various benefits to organizations; these include scalability, reliability, flexibility, utility-style costing, and location independence services. The major concern about the public cloud is data security, and due to this reason, several enterprises are moving toward private and hybrid cloud models for their cloud operations.
North America to hold the largest market size and Asia Pacific (APAC) to grow at a higher rate during the forecast period
The geographic analysis of the cloud advertising market includes five major regions: North America, Europe, APAC, MEA, and Latin America. Among all regions, North America is estimated to hold the largest market size in 2021, and the trend is expected to continue till 2026. The region is expected to hold the largest market size, as the cloud marketing technology already has a strong presence here. It constitutes developed economies: the US and Canada.
The early adoption of digital marketing, the presence of top players, and globalization of cloud services in North America are expected to drive the cloud advertising market. Enterprises in the region are investing heavily in digital marketing initiatives and improving customer experience.
In North America, the percentage of social media users, smartphone users, and ad spending is exceptionally high compared to other regions. The penetration of mobile devices in the US is more than 90%, followed by Canada. It provides marketers with a strong channel to target potential customers. Verticals, including consumer goods and retail, and media and entertainment, are expected to invest in cloud marketing technology. The growing demand for personalized content and experience would further drive the adoption in North America.
Vendors have adopted several organic and inorganic growth strategies, such as new product launches and enhancements, partnerships and collaborations, and mergers and acquisitions, to strengthen their presence in the cloud advertising market. They have been adopting a combination of organic and inorganic growth strategies to expand their customer base and market share.
Shift from Traditional Advertising to Online Advertising, the Growing Impact of Internet Users, and Consumption of Digital Media to Drive the Demand for Cloud Advertising
Campaign Management Segment to Hold the Largest Market Size in 2021
Public Cloud to Hold a Larger Market Size During the Forecast Period
Retail and Consumer Goods Vertical to Hold the Largest Market Share During the Forecast Period
Asia-Pacific to Emerge as the Best Market for Investments in the Next Five Years
Increasing Adoption of Cloud Services
Growing Need for Targeted Marketing and Consumer Analytics
Better Return on Investment (Roi) and Cost Optimization
Data Security Concerns and Stringent Cloud Regulations
Shift from Traditional Advertising to Online Advertising
Growing Impact of Internet Users and Consumption of Digital Media
Efficient Use of Data
Poor Infrastructure in Few Developing and Underdeveloped Countries