Digital Advertising Services will be Impacted by the Rising Importance of Social Media Marketing, Reports Technavio

LONDON--(BUSINESS WIRE)--The global digital advertising services market is expected to grow at a steady CAGR of more than 12% during the forecast period.

Global digital advertising services market is expected to grow at a steady CAGR of more than 12% during 2016-2020.

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The research study covers the present scenario and growth prospects of the global digital advertising services market for 2016-2020. The top suppliers listed in the report include GroupM, Leo Burnett Worldwide, BBDO (Batten, Barton, Durstine & Osborn), BlueFocus Group, and OgilvyOne Worldwide.

According to Angad Singh, a category specialist at Technavio, “Large organizations are increasingly preferring to use social media platforms, such as Twitter and Pinterest, for their advertising needs. These platforms are cost-effective and can target larger audience base. The social media platforms are placing buy buttons on their advertising sites, hence, enabling direct purchases from these sites and allowing communication with consumers.”

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Category spend intelligence market research analysts highlight the following four factors that are contributing to the growth of the global digital advertising services market:

• Increased need for cost-effective marketing channels
• Rapid increase in demand from various sectors
• Rise in demand for reduction in time-to-market
• Increase in number of smartphone users

Additional Technavio Insights: How Digital Advertising is Shaping the Business World

Rise in demand for cost-effective marketing channels

High cost of advertising services and growing monetary constraints are driving the demand for cost-effective approaches. This demand is a major contributor to the market, as digital advertising enables brands to reach target audiences more effectively and at lower costs. Adopting digital marketing can help buyers achieve cost savings in the range of 24%–27%.

Rapid increase in demand from various industry sectors

Buyers across industries spend 15%–25% of their revenue on marketing campaigns, and this is expected to increase by another 2%–3% over the next 2–3 years. It has been observed that conversions from digital advertisements in the retail sector increased by 31.8% in 2015 compared to the previous year.

Rise in demand for faster customer reach

A rise in the number of global social media users, which was approximately 2.3 billion active users in 2015, is driving several large organizations to focus on various social media platforms that can facilitate faster customer reach.

Nearly 40% of the digital advertising spend of large organizations globally was allocated for social media marketing in 2015.

Increase in number of smartphone users

A rise in the number of smartphone users across markets is driving buyers to adopt digital advertising strategies, as it facilitates faster reach and increases brand visibility. The number of smartphones users in 2015 was 6.1 billion which is predicted to amount to 9.2 billion by 2020.

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