Segmentation By Type (Private, Public And Hybrid); By Services (Infrastructure-as-a-Service, Software-as-a-Service And Process-as-a-Service); By End-User (BFSI, Government, Retail, IT & Telecom, Media & Entertainment, Hospitality & Tourism, And Others); By Organization Size (Small, Medium And Large Enterprises) – Global Demand Analysis & Opportunity Outlook 2027
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Growing E-commerce Industry And Online Advertising
It is estimated that in the year 2018, around 1.8 billion people worldwide purchased goods online. There is a shifting demand amongst traditional retailers and business houses to operate their businesses in the growing e-commerce platforms, such as Amazon, Walmart, Alibaba, Flipkart and others, thereby generating competition for outstanding sales of their products, and surge in online advertisements for better product promotion.
Rising Need For Contextual Advertisements
In the era of digital advertisements, enterprises are using various forms of advertisements to lure customers and increase product sales. Amongst all of these advertisement forms, contextual advertisements have observed robust growth amidst advertisers owing to greater ROI and response from the customers. According to the statistics provided by Eurostat, contextual advertising was the favorite form of internet advertising for SMEs and Large Enterprises in the European Union for the year 2018.
Growing Preferences For Smartphone Devices
Consumers around the globe are preferring smartphone devices over laptops or desktops, and long-established telephony phones, owing to convenience, portability, and operations that can be performed across the cloud platform. Advertisers are utilizing cloud advertising tools in order to target the smartphone users so as to complete the cycle of 360 degree marketing campaign.
Growing Demand for Bumper Ads In Social Media Platforms
The year 2018 witnessed the rise of 6-second ads, also known as bumper ads, and became a famous tool for most of the online advertisers. Initiated by Adobe in 2015, the ad format gained elevated effectiveness to advertisers, in terms of exponential growth in social media platforms, and being the key revenue generator for advertisers. All of these factors are estimated to promote growth of the cloud advertising market throughout the forecast period.
According to the statistics provided by Eurostat, at least one in four businesses in the European Union advertised on the internet in the year 2018. Added to this, the International Telecommunication Union (ITU) in one of their statistics report estimated that 3.9 billion people were using the internet at the end of 2018.
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The cloud advertising market is observing vibrant growth on account of growing trends for internet advertising, combined with technological advancements concerned with the internet, and increasing commercial application. Furthermore, rapid growth in the number of internet users worldwide and advancements in advertising business models, are some of the notable factors that are expected to boost the growth of the cloud advertising market.
The market is anticipated to record robust CAGR throughout the forecast period, i.e. 2019-2027. The cloud advertising market is segmented by services into Infrastructure-as-a-Service (IaaS), Software-as-a-Service (SaaS) and Process-as-a-Service (PaaS), out of which, Software-as-a-Service (SaaS) segment is anticipated to have largest market share on account of zero hardware & initial setup costs, pay for what the customer use factor, scalable usage, automatic updates, cross-device compatibility, and accessible from any location among other factors.
Cloud advertising systems are based on internet connectivity. A downtime activity in the server can possess as the biggest disadvantage for users to access the services. Furthermore, internet downtime have also possessed threat to the global economy. For instance, internet shutdown for 16315 hours in India during the period 2012 to 2017 cost the economy approximately $3.04 billion, as stated by the Indian Council for Research on International Economic Relations (ICRIER). All of these factors are anticipated to act as a barrier to the growth of the cloud advertising market during the forecast period.
Our in-depth analysis of the cloud advertising market includes the following segments:
On the basis of regional analysis, the cloud advertising market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
North America is expected to have largest market share on the back of growing advertisement spends in the region and high rate of cloud adoption among regional end users. Furthermore, increasing investments in artificial intelligence and machine learning technologies by organizations, for instance Amazon and Apple, by developing voice-based marketing through devices, such as Alexa and Siri platforms respectively, are expected to support the growth of the market in the region.
The cloud advertising market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
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