Study Id42540 Digital Advertising Report

INDUSTRIES & MARKETS
Digital Advertising:
market data & analysis
Market Insights report
November 2023
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Table of Contents
Overview Appendix
Summary 6 Product Overview 212
Market Definition 7 Author 214
Key Takeaways 8
Market Numbers 9
Market
Banner Advertising 42
Classifieds 58
Digital Audio Advertising 70
Influencer Advertising 93
Search Advertising 122
Video Advertising 139
Social Media Advertising 161
In-app Advertising 180
4
CHAPTER 1
Overview
In 2023, the U.S. stands as the largest digital advertising market globally across
all segments, except in Influencer Advertising, where China takes the lead
Overview: summary and key takeaways
Summary
Digital advertising uses the internet to deliver marketing messages to internet the European market with 6.4%. Due to a lasting trend toward mobile apps, the
users in various formats. This encompasses advertisements on search engine future development of digital advertising will continuously be shaped by a shift
results pages (search advertising), ads on social media networks, such as from desktop to mobile. While the share of global mobile revenues is expected to
sponsored posts (social media advertising), banner advertisements like reach 64.0% in 2023, the expected share in 2028 will be 70.0%.
skyscrapers (banner advertising), ads within video players (video advertising), paid
digital classifieds (classifieds), advertisements within digital audio content (digital
audio advertising), sponsored content through influencers (influencer
advertising), and advertisements within applications (in-app advertising).
Among the three major Digital Advertising markets – the U.S., China, and Europe –
the U.S. will likely be the biggest market in 2023, with US$271.2 billion. Thus, the
U.S. accounts for more than one-third of the world’s Digital Advertising revenue,
leaving China and especially Europe far behind with shares of only 25.6% and
17.4%, respectively. From 2023 to 2028, the U.S. will lead the race with a CAGR(1) of
8.2% among the three major regions, closely followed by China with 7.2% and
6 Notes: (1) CAGR: Compound Annual Growth Rate
Sources: Statista Market Insights 2023

In 2023, Digital Advertising plays a significant role in the advertising market,
contributing 70% to the advertising market
Overview: Market Definition
Market definition
Digital Advertising refers to the practice of promoting products or services rebates, production costs, and taxes. Additional definitions for each market can
through online channels by purchasing ad placements with the aim of driving be found on the respective pages. For more information on the data displayed,
traffic, increasing brand awareness, and generating leads or sales using data- use the info button right next to the boxes.
driven strategies. This form of advertising uses the internet and various
technologies to target audiences based on their demographics, online behavior,
and personal interests.
Digital Advertising uses the internet to deliver marketing messages to internet

users in various forms. This includes digital video, search engine, social media,
digital banner, and digital classifieds
The market comprises digital advertising spending, users, average revenue per
user, advertising share by industry, advertising share by device, brand shares, and
digital ad spending share (programmatic and non-programmatic). The market
only displays B2B spending and users for the above-mentioned channels. Figures
are based on digital advertising spending and exclude agency commissions,

Programmatic Advertising accounted for 81% of the Digital Advertising market
revenue in 2028
Overview: Key Takeaways and in scope / out of scope
Key Takeaways
In scope Out of scope
Ad spending in the Digital Advertising market is projected to reach US$679.8bn in
2023. This market includes: This market excludes:
The largest market is Search Advertising with a market volume of US$279.3bn in • Digital advertising with online • E-mail marketing
2023. revenues from video, banner,
classifieds, and search advertising in • Product placement
In global comparison, most ad spending will be generated in the United States Desktop and Mobile revenues
(US$271bn in 2023). • Commission-based affiliate systems
• Social Media Advertising with
In the Digital Advertising market, 70% of total ad spending will be generated revenue from social networks or
through mobile in 2028. business networks
In the Digital Advertising market, 81% of the Digital Advertising revenue will be
generated through programmatic advertising in 2028.

The global Digital Advertising revenue is expected to grow to US$965 billion by
2028
Market Size: Global
Digital Advertising market: Advertising spending forecast in billion US$
966
910 13 23
855 13 23 52
+13.4% (1) 799 12 23 48
740 12 22 44
614 680 39 218
11 22 207
9 10 21 35 197
569 31 186
8 20 26 20 174
22 162 242
433 147 230
140 218
366 205
305 16 6 19 191
19 5 12 177
243 4 18 8 118 149 160
103
6 3 18 89 108 390 417
76 54 76 334 362
36 252 279 307
230
132 151 168
105
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Search Advertising Video Advertising Banner Advertising Influencer Advertising Classifieds Audio Advertising

With ad spending of US$306.3 billion, the Americas is the biggest market among
selected regions in 2023
Market Size: Regional comparison (1/2)
+7.9% (1)
448.70
+7.0% (1)
332.00
306.30
+6.4% (1) 236.90
161.20
118.30
+7.7% (1) +4.7% (1)
4.00 5.80 14.20 17.90
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
Europe Africa Americas Asia Australia & Oceania

With ad spending of US$271.2 billion, the United States is the biggest market
among selected countries in 2023
+8.2% (1)
402.00
+7.2% (1)
245.70 271.20
173.60
+6.2% (1)
+6.7% (1) +6.2% (1)
55.70
41.20
16.70 23.10 10.90 14.70
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
China United States United Kingdom Germany France

Digital Advertising average ad spending per internet user is estimated to
increase from 2017 to 2028
Market Size: Global
Digital Advertising market: Average ad spending per internet user forecast in US$
155.90
160 150.50
145.10
139.60
140 133.70
127.50
117.20 120.40
120
100 94.70
86.00
78.60
80 68.00
60
40
20
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
12

Australia & Oceania has the biggest market in Banner Advertising average ad
spending per internet user in 2028
600 554.80
525.90 540.30
496.50 510.80
500 478.20
455.40
431.50 489.60
466.90
400 444.10
355.60 420.50
324.50 395.60
289.40 341.80 369.20
300 323.90
247.40
219.60 211.60
188.20 254.10 192.70 202.20
173.30 183.10
200 154.20 150.80 163.00
143.50
105.90 115.70
84.40 96.00 83.60 86.40 89.20
69.90 70.90 74.80 77.90 80.90
100 51.50 56.50
40.40 47.00
5.40 5.70 5.70 5.70 6.70 6.80 7.00 7.10 7.30 7.40 7.50 7.60
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Africa Asia Europe Americas Australia & Oceania
13

With average ad spending per internet user of US$200.9, the United States is
the biggest market among selected countries in 2023
1,400
1,211.00
1,200 1,146.00
1,081.00
1,013.00
1,000 942.60
869.00 844.90
793.50 806.50
741.70 768.10
800 729.30
687.70
643.60
567.80 595.10
600 544.00
319.40 401.80 478.40
430.20
388.40 281.70 296.40
349.20 252.10 267.10
400 306.00 236.50 250.20
220.90 238.90
157.00 192.00 205.10 205.60 216.10 227.60
118.90 133.20 144.60 162.60 178.70 192.90
200 100.80 118.00 129.90
82.20
167.70 175.60 182.90 190.20 197.50
67.60 83.00 97.80 112.60 145.10 148.60 159.30
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France China Germany United Kingdom United States
14

Mobile has dominated the global Digital Advertising revenue since 2019
Distribution by device: Global
Digital Advertising market: Mobile and desktop distribution
33% 32% 31% 30%

39% 36% 35%
44% 41%
51% 47%
54%
67% 68% 69% 70%

61% 64% 65%
56% 59%
49% 53%
46%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
15

While desktop is the leading device type in Europe, mobile dominates the
markets in the U.S. and China in 2022
Distribution by device: Regional comparison (1/2)
28% 30% 25%

35% 37%
46% 49% 44%
52% 51%
72% 70% 75%

65% 63%
54% 51% 56%
48% 49%
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
Mobile Desktop
16

Among the top countries, desktop shares are declining
Distribution by device: Regional comparison (2/2)
24% 20%
27%
34%
44% 45% 47%
50% 51% 54%
76% 80%
73%
66%
56% 55% 53%
50% 49% 46%
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
Mobile Desktop
17

Programmatic advertising is the leading method for buying, displaying, and
optimizing advertising space
Distribution by method: Global
Digital Advertising market: Programmatic ad revenue distribution
23% 22% 20% 20% 20% 20% 20% 20% 19% 19%
27% 24%
77% 78% 80% 80% 80% 80% 80% 80% 81% 81%
73% 76%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Programmatic Non-programmatic
18

Programmatic advertising also dominates in the top 5 regions, led by Australia &
Oceania with a share of 83% by 2023
Distribution by method: Regional comparison (1/2)
19% 18% 19% 18% 21% 22% 17% 18%

25% 23%
81% 82% 81% 82% 79% 78% 83% 82%

75% 77%
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
Programmatic Non-Programmatic
19

Programmatic advertising dominates Digital Advertising across all selected
countries
Distribution by method: Regional comparison (2/2)
18% 18% 17% 15% 18% 17% 17%

21% 23% 21%
82% 82% 83% 85% 82% 83% 83%

79% 77% 79%
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028
Programmatic Non-Programmatic
20

Competition in the Digital Advertising market is fierce as many players are
striving for market dominance
Key player landscape (1/4)
Agencies and trading desks Demand-side platforms Ad networks / Supply-side platforms (SSPs)
Publishers
(DSPs) ad exchanges
21

In the Digital Advertising market, the largest players dominate their respective
fields
Worldwide market shares in the Social Media Advertising, Search Advertising, and Digital Video Advertising segments in 2021
Social Media 62% Digital Video

Search Advertising
Advertising Advertising
54% 46% Rest 70% 30%
38%
Rest
Rest
22
Sources: Statista Market Insights 2023; Company information

The top 8 Digital Advertising players generated 88% of total digital ad sales in
2021
Worldwide Digital Advertising market shares
Other
2.8%
2019 39.0% 20.2% 4.6% 7.2% 3.5% 3.2% 17.3%
2.2%
2.4% 2.9%
2020 36.3% 20.8% 7.6% 7.3% 4.6% 15.6%
2.3%
2.1% 2.5%
2021 39.0% 21.4% 8.2% 7.4% 5.5% 11.9%
1.9%
23
Sources: Statista Market Insights 2023: Company information

WPP is the top marketing agency in the world, which earned US$15.4 billion in
2022 from marketing and advertising activities combined
Ranking of the top advertising and marketing agencies by consolidated revenue in 2020, in billion US$
Ranking Revenue Location Employees IPO Status Industry
1 15.4 109,382 Public Advertising

9 6.3 14,000 Public Administrative & supportive services
10 5.9 2,885 Public Computer programming
11 3.4 16,300 Public Publishing
12 3.2 20,000 Public Administrative & supportive services
24

As regulators step up privacy requirements, Big Tech has to react, and data
collection will become more difficult
Deep dive: Data privacy (1/2)
Apple’s App Tracking Transparency(1) and exemplary potential effects on Timeline of events affecting Google’s intention to eliminate third-party
Facebook Audience Network cookies in 2024
Google to
iOS 14.5 includes a new add-on CCPA CCPA Google announced eliminate
which will established launched in the removal of cookies from
1. make users aware of what in California California cookies from Chrome Chrome
information an app will track before
installing,
2. give users the choice to allow or deny
tracking, and 2017 2018 2019 2020 2021 2022 2023 2024
3. hence make targeting more difficult
for other players.
Apple GDPR Firefox Safari fully
launched launched blocks blocks third-
Areas affected Potential responses Intelligent in the EU third-party party cookies
Statistical modeling Tracking cookies
Ads Manager
Prevention
Ads Reporting Certain windows to have in Safari
partial reporting
Phasing out third-party cookies will have significant effects on cross-platform
Ads Insights API Segments will no longer be
targeting — “repositories” with first-party data will benefit.
broken down in reporting
25 Notes: (1) Apple released iOS 14.5 on Monday, 26 April 2021
Sources: The App Store; Search Engine Journal; CNET; Arbolus; Digital Kites; European Union; Company information
Private gardens could be planted in those industries whose players capture
abundant first-party data
Deep dive: Data privacy (2/2)
Examples of platform types in different industries with private garden potential
Platform type Platform advantages Potential competitors
Technology Selected data on user activity across various tech platforms

Microsoft Roku
Telco Scaled data on user location and data consumption

Potential private gardens
AT&T Comcast Verizon T-Mobile
Media Scaled user data buoyed by increasing requirement for authentication Disney NBC Viacom CBS Netflix
Retail Scaled user and purchasing data driven by increased eCommerce penetration Walmart Kroger Costco
Marketplaces Scaled user data with location and consumption behavior
Scaled user data driven by the increasing shift to paywalls and authentication New York Times Buzzfeed Washington post
Publishing
requirements Wallstreet Journal
USAA AARP AAA
Interest groups / loyalty Scaled user data that cuts across industries
Scaled, highly engaged audiences across dominant platforms with insights Google Facebook Amazon
Walled garden(1)
into high-intent, extremely granular, actionable user data
26 Notes: (1) A walled garden is a closed ecosystem in which all the operations are controlled by the ecosystem operator. Contenders can access existing private marketplaces and free themselves from disproportionate dependency
using other technology platforms to create a private garden out of a walled one
Sources: Activate analysis; company information
By merging advertising and content, native advertising bridges the gap between
product and publisher
Deep dive: Native advertising
What is native advertising?
Native advertising means the seamless matching of advertisements to the form

and function of the environment (e.g., news websites, video platforms) in which
they appear. They can manifest as articles or videos. Usually, these native
advertisements have a so-called advertorial character, meaning that they resemble
an editorial-shaped design and look. Companies such as Outbrain and Taboola
have specialized in this field of advertising. Native advertising can be seen as a
successor to product placement, as the advertised product is not only placed within
the content it appears in but is even merged with it. This format’s biggest power is
its inconspicuousness, preventing a user’s distraction and deterrence through the
advertisement’s appearance. Also, the proximity to editorial contributions is
increasing the consumer engagement and the acceptance of the ads. Native
advertisements work very well on smaller displays and are therefore ideally suited
for advertising on mobile devices. Although native advertising is legal in many
countries, e.g., the U.S., merging advertising and native content still receives
criticism. In some cases, it is difficult to clearly distinguish between advertisements
and content. Especially social networks such as Facebook have been faced with
complaints about intentionally supporting consumer and voter deception.
27

Programmatic advertising has the potential to revolutionize advertising based
on user targeting
Deep dive: Programmatic advertising (1/4)
What is programmatic advertising?
Driven by audience data to better target certain potential customers, programmatic

advertising describes the software-based method of buying, displaying, and
optimizing of advertising space. The recipient of the ad is known before the ad is
even sold. Thus, the ad can be personalized even more. This process takes place
within a split second. The method is also paving the way for a variety of smart and
innovative ad formats such as advertising in audio streams, podcasts, connected
TVs and cars, or digital out-of-home solutions, breaking down the barrier between
digital and analogue. In recent years, software solutions relating to programmatic
advertising have become more comprehensive, more powerful, and more
integrable. Thus, programmatic advertising triggers a constantly growing demand.
Also, modern advertising techniques such as (re-)targeting and real-time bidding,
which are closely tied to programmatic advertising, find more and more application
in a growing number of companies. We believe that this development is only just
beginning and will have noticeable effects on the advertising market in general and
the Digital Advertising market in particular. We expect this optimized targeting to
increasingly improve and the average revenue per user to increase accordingly.
28

Roles in Digital Advertising are diverse, many different participants can be found
in the revenue stream
Role Example Description
Agency WPP The service of advertising agencies includes creating, planning, and handling advertising.
Demand side:
advertiser Trade desks do not create advertising but take care of a certain part of the planning and handling, with a
Trade desk XAXIS
focus on buying advertising inventory.
DSPs bundle the demand of ad buyers and enrich it with user data within the context of programmatic
DSP(1) The Trade Desk
advertising, for example.
Ad networks bring publishers and advertisers together by selling ad space to advertisers based on their
Ad network Google Ads
needs with a holistic approach including many roles.
Ad exchanges work in a similar way to ad networks. Ad exchanges usually sell ad space in real-time
Ad exchange AppNexus
auctions based on data from DSPs, SSPs etc.
Supply side:
publisher SSPs bundle advertising space. They act as an entrance into the market for publishers. Many networks
SSP(2) Rubicon Project
and exchanges have their own SSPs.
Publishers sell space or time in their video players as inventory for advertising reasons. This is the place
Publisher YouTube
where the audience receives the ads.
29 Notes: (1) Demand-side platform (2) Supply-side platform

Programmatic advertising involves many different roles and relies heavily on
metrics and data inputs
Process of programmatic advertising
Data
Data Data Data
Data
management
Demand Side: tools suppliers exchanges Audience
platforms
Advertiser
supplying
supplying
displaying
Publisher
buying selling
Agency DSP(1) SSP(2)
Ad server Ad exchange Ad server using
planning
spending
Supply Side: Offering buying solutions

Publisher Trade such as real-time bidding
desk
Metrics
Audience Web Post

metrics analytics evaluation
Advertiser supplying supplying
30 Notes: (1) Demand-side platform (2) Supply-side platform

Marketers have had increased interest in spending more on programmatic
advertising campaigns
Campaign spending projection for programmatic video in 2022 Campaign spending projection for programmatic audio in 2022
2% 6% 3% 1% 5%
6% 14%
35% 32% 20%
37% 37%
31% 48%
53%
91% 86%
75%
63% 65% 67% 63%
61%
47% 52%
Global Australia Canada UK U.S. Global Australia Canada UK U.S.
Increase Constant Decrease
31
Sources: MiQ
While television is still the dominant advertising touchpoint in the U.S. and
China, Germany has been overtaken by online stores and video portals
Deep dive: Advertising touchpoints
Encountering advertisements in the past 4 weeks, by touchpoint
47%
Television 39%
51%
Demand Side: 42%
Advertiser Social media websites and apps 38%
34%
35%
Video portals (e.g., YouTube) 42%
31%
35%
Search engines 43%
34%
33%
Radio 35%
21%
28%
Online stores 43%
34%
24%
Video games (smartphone / tablet / console / PC / smart TV) 19%
33%
U.S. Germany China
32 Notes: "Where have you come across advertisements in the past 4 weeks?”; Multi Pick; U.S.: n=50,398; Germany: n=30,146; China: n=24, 172

Advertising is becoming an important revenue source for eCommerce; selected
players will reach nearly US$100 billion in 2022, with a 26.2% CAGR(1)
Deep dive: Advertising in eCommerce
Global advertising revenue of selected eCommerce players, in billion US$
94.3
Demand Side:
Advertiser 1.7 1.9
3.8
78.9 6.0
+26.2% (1) 1.5 1.3
2.5
5.4
59.7 1.2 39.0
1.7 0.9
47.6 4.7 31.2
1.1
1.1
37.2 4.1 0.5 19.8
0.9
0.7 3.3 12.6
0.3
9.2
41.8
37.1
28.3 31.5
22.7
2018 2019 2020 2021 2022e
Sources: Statista Market Insights 2023; company information

A sufficient digital infrastructure is the necessary basis for developing digital
markets
Key market indicators: Digital infrastructure overview
Global numbers for 2023
75.8% of the global population uses 27.4 Mbit/s is the global average
INTERNET the internet on a monthly basis. CONNECTION internet connection speed. As
PENETRATION Increasing internet penetration SPEED connection speeds improve, services
builds the base for using digital such as high-quality videos and 3D
media. simulation become available.
86.1 subscriptions per 100 capita 55% of the global population use a
MOBILE was the global number for mobile SMARTPHONE smartphone on a monthly basis.
BROADBAND broadband subscriptions, which is a PENETRATION Unlike smartphones, smart devices
SUBSCRIPTION crucial indicator for establishing (e.g., smartwatches) are enabled with
digital services. digital connectivity.
34

Internet penetration is especially high in some European countries and the U.S.,
but China falls behind
Key market indicators: Internet penetration
Internet penetration in 2023
93%
90%
Europe
85% 84% Ø 86%
79%
Global
Ø75%
United States United Kingdom Germany France China
35

Various further factors influence the Digital Advertising market
Key market indicators: Socioeconomic and consumer electronics overview
Global numbers for 2023
Globally, 5,828 million people use 57.8% of the global population lives
INTERNET the internet. The number of internet URBAN in urban areas. The gradual shift of
USERS users in a country is a key indicator POPULATION the population from rural to urban
for the market size. areas is a constant phenomenon.
The most urbanized regions
generally have a high demand for
digital media.
The average consumer spending per In addition to the increasing share of
capita of private households was older people in the population, the
CONSUMER
US$20,826. Knowing the expenditure DEMOGRAPHICS ratio of females to males is also
SPENDING
per capita gives necessary insights shifting toward a larger female share
into price developments and the of the population.
average willingness to pay.
36

The userbase of social media users is seeing steady growth
Key market indicators: Social media users
Number of worldwide social media users, in million
6,054
5,852
+7.5% (1) 5,649
5,423
5,174
4,898
4,594
4,261
3,905
3,510
3,102
2,734
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Per-head consumption expenditure in the U.S. is about 10 times higher than in
China
Key market indicators: Consumer spending
Consumer spending per capita in 2023, in US$
53.587
31.478
27.980
26.153
Europe
Ø 21,935
Ø20,826
Global
5.165
United States United Kingdom Germany France China
38

Global brands and corporations have been leaving Russia in 2022
Russia-Ukraine war impact: A list of global brands that have pulled out of Russia (3/3)
A list of major brands and corporations that have pulled out of Russia since February 2022
Consumer goods and retail Tech Energy Media
Food Travel and logistics Finance Professional services
39
Sources: The New York Times

Due to the war, the global economy is also facing substantial inflationary
consequences
Russia-Ukraine war impact: Inflation
Global inflation revision by selected institutions, in percentage points YoY inflation rate in 2022(1)
15.6%
IMF 3.6% 13.3%13.3%
11.1% 10.8%
10.3%
9.2% 8.8%
8.1%
Kiel Institute 3.3% 7.2%
6.2% 5.9%
NIESR 2.9% LT LV EE PL SK HU NL GB ES DE FI US
OECD 2.5%
+12.4 +8.4 +7.3 +4.9 +6.7 +4.3 +6.1 +4.4 +4.9 +4.4 +4.3 +1.5
Oxford
2.3%
Economics YoY inflation rate June 2022 % change since December 2021
40 Notes: (1) Projections as of June 2022
Sources: OECD; IMF; Kiel Institute; NIESR; Oxford Economics

A significant price increase of commodity products became apparent mid-2022
and is expected to remain high in the medium term
Russia-Ukraine war impact: Consumer price index
YoY consumer price index(1) change 12-month consumer price index change in the U.S. in May 2022, by category
72%
76%
60%
49%
49%
20% 32%
16% 14% 13% 12% 11% 10% 8% 10%
7% 5% 5% 5% 7% 16%
3% 4% 5%
12% 10% 9% 8%
TR AR RU BG CZ RO PL HU BR US
Fuels Gasoline Eggs Electricity Dairy Beef Fruits Sweets
YoY 2021 YoY 2022
41 Notes: (1) Based on yearly average
Sources: OECD; U.S. Bureau of Labor Statistics

CHAPTER 2
Banner Advertising:
The Banner Advertising market has experienced significant growth and
development due to the expansion of internet access and smart device usage
Overview: Summary
Summary
On October 27, 1994, the first digital banner advertisement with the text “Have Before the COVID-19 pandemic, digital banner advertising was showing signs of
you ever clicked your mouse right HERE? YOU WILL” in colorful font was released. steady growth. The pandemic accelerated digital adoption, resulting in
Since then, digital banner advertising has grown in popularity and evolved from exponential growth in digital advertising, especially digital banner advertising. The
displaying ads in predetermined places to targeting by using consumer data and most recent digital banner advertising strategy is remarketing, which has proven
finally, to remarketing, in which ads are shown repeatedly based on consumer to be more accurate and less complicated than others, which contributes to the
behavior and interest. Marketers continue to utilize digital banner advertising strategy’s success. We predict consistent growth in digital banner advertising in
because it is an effective way to raise brand awareness, generate leads, and the coming years.
retarget an audience.
The expansion of digital banner advertising is primarily due to the improved
internet infrastructure and technology, as well as the decreasing prices of smart
devices such as computers, tablets, and smartphones. In the past years, the
internet infrastructure has seen considerable change and is now faster and
cheaper. Furthermore, because internet-enabled devices have become more
affordable, allowing more people to purchase them and use them daily, digital
banner advertising is expected to grow significantly.
43

Banner advertising is an effective form of digital advertising that uses visuals to
attract and direct a large and diverse audience to a landing page
Overview: Market definition
Market definition
Banner Advertising is one of the first digital advertisements published on the

internet. Banner ads allow anyone to advertise on websites, apps, or social media
by using attractive images, shapes, and sizes of displays. The main purpose is to
direct the traffic of the targeted audience to a specific website. Banner Advertising
includes skyscrapers, wallpapers, interstitials, or pop-ups which are usually linked
to the advertiser's landing page.
The market comprises advertising spending, users, and average revenue per user.
The market only displays B2B spending. Figures are based on advertising spending
and exclude agency commissions, rebates, production costs, and taxes. For more
information on the data displayed, use the info button right next to the boxes.
44

Banner Advertising accounted for 23.81% of the Digital Advertising market
revenue in 2023
Key Takeaways
Ad spending in the Banner Advertising market is projected to reach US$161.8bn in
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of • Banners on websites, in apps or • Overlays within web- or app-based
6.11%, resulting in a projected market volume of US$217.6bn by 2028. social media video players
In global comparison, most ad spending will be generated in the United States • Rich media ads on websites, in apps • Pre-roll, mid-roll, post-roll video ads
(US$62,710m in 2023). or social media within web- or app-based video
players
The average ad spending per internet user in the Banner Advertising market is • Videos on websites or in apps that
projected to amount to US$30.4 in 2023. are displayed instead of banners
In the Banner Advertising market, US$161.3bn of total ad spending will be • Native advertising
generated through mobile in 2028.
45

Banner Advertising ad spending is estimated to increase at a CAGR(1) of 10.0%
from 2017 to 2028
Market Size: Global
Banner Advertising market: Advertising spending forecast in billion US$
217.61
207.04
+10.0% (1) 196.47
185.87
174.43
161.84
147.20
139.92
117.98
102.73
89.45
75.97
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

+5.6% (1)
+6.9% (1)
92.73
85.34
70.62
61.21
+5.8% (1)
34.86
26.29
+5.7% (1) +4.3% (1)
1.03 1.36 2.68 3.31
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

+5.6% (1)
82.19
+7.4% (1)
61.52 62.71
43.12
+5.9% (1)
+5.3% (1) +6.2% (1)
7.51 10.01
3.55 4.60 2.09 2.82
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Banner Advertising average ad spending per internet user is estimated to
Market Size: Global
Banner Advertising market: Average ad spending per internet user forecast in US$
40
34.23 35.11
35 32.48 33.34
31.50
30.35
28.83 28.83
30
25.78
24.16
25 23.06
21.25
20
15
10
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
49

Australia & Oceania has the biggest market in Banner Advertising average ad
110 100.63 102.91

96.05 98.36
100 93.40
90.32 101.12
84.38 86.70 98.19
90 95.26
78.26 92.33
80 74.61 89.00
71.78 85.12
69.01 80.50
70 62.95 78.35
57.19 68.99
60 51.10
50 43.94 45.76
40.32 42.12
36.23 38.38
40 33.15 33.59
26.73 29.22
30 22.72 24.70 22.25 22.93
19.33 20.19 20.91 21.57
16.19 18.29 18.15
20 12.91 14.34 15.07
10 1.70 1.72 1.66 1.67 1.80 1.76 1.78 1.78 1.79 1.78 1.78 1.78
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
50

247.50
250 238.95
230.39
221.72
212.03
200.92
200 187.93
180.33
155.20 151.78
145.23
150 138.68 138.68
132.13
123.47 125.03
117.21
107.13 103.86 108.47
100 90.28
81.31
73.78 59.01
66.15 52.17 54.45 56.73
43.88 46.95 49.69
37.56 42.33 45.86 47.89
29.68 31.93 34.49 39.59 41.80 43.83
50 32.87 34.33 37.12
22.93 25.46 28.44
20.30 47.60 49.43
39.58 41.95 43.96 45.77
30.75 36.10 36.29
19.90 23.97 27.38
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France China Germany United Kingdom United States
51

In the Banner Advertising market, mobile ad spending‘s share reached 71% in
2023
Distribution by Device: Global
Banner Advertising market: Share by device
30% 29% 28% 27% 26% 26% 26%

35% 32%
43% 39%
46%
70% 71% 72% 73% 74% 74% 74%

65% 68%
57% 61%
54%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
52

The Trade Desk provides artificial intelligence to increase an advertising
campaign’s success while protecting customer data privacy
Company profile: The Trade Desk
The Trade Desk Advertising targeting tool for the open internet developed by The Trade Desk
The Trade Desk was founded by the industry’s real-time bidding pioneers Jeff Green The Trade Desk developed an open-source advertising targeting tool called Unified
and Dave Pickles and has become one of the fastest-growing demand-side ID 2.0 (UID2). UID2 is a tool that has high data security and transparency and is
platforms in the industry. Customers can create personalized advertising designed to reduce dependency on third-party cookies. Traditionally, advertisers
experiences across various channels and devices and with it, take advantage of have relied on third-party cookies to identify customer targets. As customer data
advanced omnichannel targeting and online and offline attribution. privacy is becoming more protected in the advertising industry, UID2 provides an
alternative solution for advertisers.
Revenue in million US$ Unified ID 2.0 workflow

Unified ID is used in bidding
1,197
ID Service
+48%(1) 836
661 Consumer Verify e-mail Publisher Unified ID Trusted Ad ecosystem
477 and set privacy is created participants
308 preferences
203
114 Transparency and consent service
2015 2016 2017 2018 2019 2020 2021 Customers can change preferences and options at any time
Sources: Company information

Nearly 90% of all online banner ad impressions are from four banner sizes
Deep dive: Top banner size
Global top online banner sizes in 2022, by frequency of use
40%
25%
12% 12% 11%
300×250 medium rectangle 728×90 leaderboard 320×50 mobile meaderboard 160×600 wide skyscraper Other sizes
54
Sources: Match2One
While 55% of respondents in North America took no action on banner ads, only
20% in Africa and the Middle East ignored them
Deep dive: Consumer action on banner advertising format
Consumers who took no action on online banner ad formats in 2021, by region

55%
50%
33%
25%
20%
North America Europe Latin America Asia-Pacific Africa / Middle East
55
Sources: Nielsen
The CPCs(1) in the consumer services, technology, and dating & personals
industries have significantly declined in the past 4 years
Deep dive: Cost of banner advertising (1/2)
Average cost per click (CPC)(1), in US$

6.8
6.4
5.9
4.2
3.8 3.8
3.4 3.7 3.3
2.9 3.2 2.8
3.2
2.6 2.6 2.5 2.4 2.4
1.8 2.0 1.8 2.0
1.6 1.7 1.5 1.6 1.7
1.4 1.4 1.2 0.9
0.2
Real Estate
Employment Services
Industrial Services
Dating & Personals
Home Goods
eCommerce
Education
Legal
Finance & Insurance

Consumer Services
Auto
Technology
Advocacy
B2B
Health & Medical
Travel & Hospitality

2018 2022
56 Notes: (1) Cost per click describes a method used by digital advertising platforms to bill advertisers based on the number of times website visitors clicked on an advertisement
Sources: WordStream
For most of the top keywords, Google Ads CPCs(1) are lower than Bing Ads
Deep dive: Cost of banner advertising (2/2)
Average CPC(1) of top-bidding keywords from Google Ads and Bing Ads
Insurance 55 Lawyers 109

Gas / electricity 55 Attorney 102
Mortgage 47 Structured settlements
70 78
Attorney 47 DUI
Claim 46 Mesothelioma 69
Loans 44 Treatment 67
Lawyer 43 Annuity 67
Conference call 42 MBA 63
Recovery 42 Phone 54
Donate 42 Insurance 53
Degree 41 Diploma 53
Treatment 37 Rehab 50
Credit 36 Cloud 50
Software 35 Accounting 45
Classes 35 Exterminator 45
Rehab 34 Mobile 43
Trading 33 Business 41
Hosting 32 Repair 40
Transfer 30 Plumber 37
Cord blood 28 Podiatry 30
57 Notes: (1) Cost per click describes a method used by digital advertising platforms to bill advertisers based on the number of times website visitors clicked on an advertisement
Sources: WordStream
CHAPTER 2
Classifieds:
Digital classifieds advertising is a low-cost and effective way of reaching local
targets, and it has grown steadily due to the increase in internet adoption
Overview: Summary
Summary
In the early 2000s, there was a significant shift in the advertising strategies for showed a positive trend. The cost of digital classifieds advertising is significantly
classifieds. Offline classifieds advertising was once the most popular and effective lower compared to other strategies, and it keeps advertisers focused on the
advertising strategy. For example, people used classifieds in newspapers to look business and its location to target consumers who are more likely to make a
for local deals. However, as the digital era has progressed, digital classifieds have purchase. With these advantages, digital classifieds advertising is expected to
surpassed all classifieds categories (real estate, automotive, jobs, and general) continue developing in the coming years.
due to reduced costs, shorter processing times, higher return on investment, and
more precise targeting.
Moreover, technology has experienced significant developments in the past years,

resulting in changed usage behavior by both the advertisers and their target
audiences. Internet-enabled devices have become everyday products for many
people, and the internet infrastructure has become faster and more affordable.
Therefore, digital tools have become a popular choice for advertisers to reach
specific target groups.
Digital classifieds advertising grew the least of all digital advertising strategies
(digital banner, digital video, search, and social media advertising), although it still
59

Classifieds advertising, which lists products and services in categories and aims
to target local audiences, is an important part of digital advertising
Market definition
Classifieds refer to online advertising posts that list products and services in including consumers (private individuals) looking for other private individuals
categories. Advertising spending on Classifieds includes the fees advertisers pay to complete small-scale, non-permanent jobs (such as contractor services) for
to display an online ad and to list it in a specific category. The fee must be paid by them (e.g., TaskRabbit)
the advertiser regardless of the outcome of the ad and does not depend on
The Classifieds market comprises advertising spending, users, and average
factors such as the ad's position, size, or display duration.
revenue per user. The market only displays B2B spending. Figures are based on
Advertising spending on Classifieds is separated into four categories: advertising spending and exclude agency commissions, rebates, production costs,
and taxes. For more information on the data displayed, use the info button right
• Jobs covers ads by businesses offering permanent employment (e.g., Indeed,
next to the boxes.
Monster)
• Motor covers ads by companies or consumers offering vehicles for purchase

(e.g., Cars.com)
• Real Estate covers ads by companies or consumers offering real estate for rent
or purchase (e.g., Roofstock)
• General covers all forms of ads that are not included in the other categories,
60

Classifieds accounted for 3.1% of the Digital Advertising market revenue in 2023
Key Takeaways
Ad spending in the Classifieds market is projected to reach US$21.1bn in 2023.
This market includes: This market excludes:
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of
2.15%, resulting in a projected market volume of US$23.4bn by 2028. • Fees paid by advertisers in order to • Other advertisements (e.g., banners)
display an online ad or listing around on classifieds websites
In global comparison, most ad spending will be generated in China (US$7,190m in
a specific vertical
2023).
The average ad spending per internet user in the General classifieds market is
projected to amount to US$1.1 in 2023.
In the Classifieds market, 50% of total ad spending will be generated through

mobile in 2028.
61

Classifieds ad spending is estimated to increase at a CAGR(1) of 2.7% from 2017
to 2028
Market Sizes: Global
Classifieds market: Advertising spending forecast in billion US$
+2.7% (1)
22.98 23.41
22.11 22.54
21.05 21.66
19.90 20.15
19.06 18.77
18.24
17.54
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

With ad spending of US$10.3 billion, Asia is the biggest market among selected
regions in 2023
Market Sizes: Regional comparison (1/2)
+3.5% (1)
12.27
10.31
+0.6% (1)
5.97 6.15 +0.7% (1)
3.73 3.87
+0.5% (1)
+4.0% (1)
0.76 0.78
0.28 0.34
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

With ad spending of US$7.2 billion, China is the biggest market among selected
countries in 2023
Market Sizes: Regional comparison (2/2)
+4.7% (1)
9.05
7.19
+0.4% (1)
+0.6% (1)
2.57 2.62 +0.4% (1)
1.91 1.97 0.0% (1)
1.13 1.15
0.53 0.53
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Classifieds average ad spending per internet user is estimated to decrease from
2017 to 2028
Market Sizes: Global
Classifieds market: Average ad spending per internet user forecast in US$

4.91
5.0 4.70
4.48
4.5
4.10 4.10
3.95 3.95 3.91 3.86
4.0 3.83 3.80 3.77
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
65

Australia & Oceania has the biggest market in Classifieds average ad spending
per internet user in 2028
30 27.42 27.45
27.14
25.30 25.73 25.68 25.47 25.22 24.95 24.68 24.37 24.06
25
20
15
10 8.87 8.77 8.74 8.28 8.16 8.23 8.19 8.15

8.09 8.11 8.09 8.07
5.20 5.11 5.04 4.62 4.59 4.54 4.49 4.43 4.37 4.31 4.26 4.21
5 3.89 3.72 3.53 3.31 3.35 3.20 3.26 3.27 3.27 3.27 3.28 3.29
0.75 0.68 0.60 0.52 0.51 0.49 0.48 0.47 0.47 0.46 0.45 0.45
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Africa Asia Americas Europe Australia & Oceania
66

With average ad spending per internet user of US$29.8, the United Kingdom is
29.51 29.49 29.81 29.84 29.81 29.80 29.80 29.81

28.55 29.00 28.75
30 27.52
25
20
15.44 15.31 15.37 14.79 14.93 14.98 14.95 14.90 14.86 14.83 14.80
14.51
15
10.20 10.09 9.99 9.15 9.09 9.03
9.07 9.29 9.38 9.37 9.29 9.22
10 8.52 8.61 8.66 8.02 7.95 7.88
8.17 8.25 8.26 8.23 8.17 8.09
6.60 6.80 6.90 7.01 7.14 7.26
6.00 6.19 6.15 6.49 6.26
5 5.93
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
China United States France Germany United Kingdom
67

In the Classifieds market, mobile ad spending‘s share reached 46% in 2023
Classifieds market: Share by device
54% 54% 53% 52% 51% 50% 50%

60% 58% 57% 56%
62%
46% 46% 47% 48% 49% 50% 50%

40% 42% 43% 44%
38%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
68

With its network of partner websites, StepStone reaches up to 16.6 million
monthly visitors
Company profile: StepStone
StepStone key facts Availability of StepStone
Revenue: US$730.8 million (2019) CAGR(1): 7.4% (2019-2020)
Employees: 3,500 (2019) Number of job ads: 29 million (2019)
Founded: 1996 Headquarters: Düsseldorf, Germany
Product: online job board StepStone’s advertising strategy
Originally founded under the name of Jobshop in Oslo, Sweden, the company In contrast to other digital classifieds websites, posting job offers on StepStone
entered the German market in 1998. For a fee, businesses can post digital job always entails paying a fixed fee. Customers can choose between three packages,
offers and promote their vacancies. The company was eventually rebranded to including different features such as customizable classifieds, the embedding of
StepStone in 2000 and went public in the same year. Nine years later, Axel Springer company videos, a better positioning in the website’s search results, or the
acquired the online job board and delisted it from all stock exchanges in 2010. classified’s inclusion into user newsletters. Moreover, all job classifieds are also
displayed on up to 450 other websites StepStone is partnering with, including
Today, StepStone operates on some of the world’s biggest digital classifieds
partners in the IT, finance, pharma, medical, and logistics industries and 50
websites and networks with 67 million monthly visits and more than 60,000
universities. Thus, advertisers benefit from a range of 16.6 million monthly visitors.
companies posting vacancies.

CHAPTER 2
Digital Audio Advertising:

Better audience targeting and more personalized campaigns become possible
with digital audio advertising
Overview: Summary
Summary
Digital audio advertising started to gain popularity in the early 2010s when Digital audio advertising has a promising future with the continued growth of
streaming audio services such as Pandora and Spotify emerged. With the rise in streaming users, the emergence of podcast users and services, and the increasing
digital audio users, advertisers began to see the potential of reaching targeted popularity of smart speakers. Advertisers will be able to identify more target
audiences through audio streaming platforms. However, the ad formats and audiences and expand the numbers of these user bases. Smart speakers are
targeting capabilities were limited compared to what we see today. Advertisers ideally positioned to generate higher engagement by integrating voice-activated
mostly relied on display ads and pre-roll audio ads that were not tailored to ads and smart speaker ads.
listener preferences.
Today, digital audio advertising across the globe has grown tremendously thanks
to the explosion of streaming services like Spotify, YouTube Music, Apple Music,
Amazon Music, and Tencent Entertainment Music. These services use location-
based targeting, device targeting, programmatic advertising, and demographic
targeting, among others, to reach their selected audience accurately and
personalize their campaigns in real time for better optimization.
71

Audio Advertising reaches a large audience through music and podcast
streaming services, making it an important part of the digital advertising market
Market definition
Audio Advertising includes all ad revenue generated through pre- and in-stream
audio ads that appear in music (music also includes all kinds of radio services)
and podcast streaming services. Formats can be single spots, tandem spots, or
popular special advertising formats such as presenting, on-air promotions, and
infomercials, directly embedded in the audio file or dynamically inserted. Music
streaming advertising is ad-supported on music streaming services. Podcast
advertising is ad supported for ads placed within podcast channels
Audio Advertising comprises advertising spending, users, and average revenue

per user. The market only displays B2B spending. Figures are based on
advertising spending and exclude agency commissions, rebates, production costs,
and taxes. Key players in Audio Advertising include Amazon Music, Apple Music,
YouTube Music, Tencent Music, and Spotify. For more information on the data
displayed, use the info button right next to the boxes.
72

Audio Advertising accounted for 1.49% of the Digital Advertising market revenue
in 2023
Key Takeaways
Ad spending in the Audio Advertising market is projected to reach US$10.1bn in
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of • Digital Audio Advertising through • Banner or Video ads included only
5.43%, resulting in a projected market volume of US$13.2bn by 2028. pre- and in-Stream Audio Ads that in the web player of the streaming
appear in music and podcast service
In global comparison, most ad spending will be generated in the United States streaming services
(US$5,870m in 2023).
The average ad spending per listener in the Audio Advertising market is projected
to amount to US$7.6 in 2023.
In the Audio Advertising market, 77% of total ad spending will be generated

through mobile in 2028.
73

It is estimated that ad spending in the Digital Audio market will increase at a
CAGR(1) of 15.5% from 2017 to 2028
Market Size: Global
Digital Audio market: advertising spending forecast in billion US$
13.21
12.82
+15.5% (1) 12.43
11.89
11.13
10.14
8.89
7.58
5.65
4.78
3.59
2.71
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Digital Audio market: advertising spending forecast in billion US$
+5.8% (1)
8.50
6.40
+4.5% (1)
+5.2% (1)
2.78
2.23
1.69 +5.9% (1) +2.7% (1)
1.31
0.06 0.08 0.14 0.16
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Digital Audio Advertising market: advertising spending forecast in billion US$
+5.8% (1)
7.79
5.87
+4.4% (1)
+5.1% (1) +6.6% (1) +6.7% (1)
1.07 1.33
0.25 0.32 0.16 0.22 0.13 0.18
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Audio Advertising average ad spending per listener is estimated to increase
from 2017 to 2028
Market Size: Global
Digital Audio Advertising market: Average ad spending per user forecast in US$
9 8.34 8.43 8.52

8.19
7.95
8 7.59
7.13
7
6.08
6
4.83 4.86
5
3.87
4
3.08
3
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
77

The Americas has the biggest market in Audio Advertising average ad spending
per listener in 2028
30
25.62 25.93 26.24
25.10
24.28
25 23.09
21.62
20 18.54
15.15 14.69 14.56 14.95 15.03 14.95 14.81 14.68

15 13.10 13.76
11.25 11.40
10 8.73 8.89
7.41 7.67 7.81 7.89 7.96
7.00 6.55 6.99
5.78
3.51 3.78 4.87
5 2.08 2.68 2.89 3.00 3.05 3.08 3.09 3.10
2.06 2.48 2.70
1.27 1.94
0.76 0.65 0.69 0.71 0.73 0.75 0.76 0.77
0.30 0.36 0.44 0.45 0.55
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Africa Asia Europe Australia & Oceania Americas
78

With average ad spending per listener of US$39.7, the United States is the
biggest market among selected countries in 2023
42.75 43.27 43.78

45 41.88
40.49
38.46
40
35.95
35
30.76
30
24.22 24.20
25
20.93
20 17.96
15
8.16 8.63 8.92 9.08 9.15 9.23
10 4.56 4.69 5.91 7.68
3.01 3.67 6.17 6.66 7.00 7.22 7.34 7.46
1.82 3.14 3.34 4.29 5.62
5 2.44 4.26 4.68 5.34 5.52 5.63 5.74
0.96 1.95 2.35 3.15 5.07
1.37
0.50 1.94 2.05 2.33 2.33 2.49 2.56 2.60 2.63 2.64 2.65
1.13
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
China Germany France United Kingdom United States
79

It is estimated that the Digital Audio Advertising market will reach 1.55 billion
people by 2028
Market Size: Global
Digital Audio Advertising market: forecasted users(1) in billion
1.52 1.55
1.6 1.49
1.45
1.40
1.4 1.34
1.25 1.25
1.16
1.2
0.99
1.0 0.93
0.88
0.8
0.6
0.4
0.2
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
80 Notes: (1) Total users refer to aggregated users which include streaming users, podcast users, as well as those who use both streaming and podcast services.

It is projected that Digital Audio Advertising will reach 900 million users in Asia by
2028
0.88 0.90
0.9 0.84 0.86
0.81
0.77
0.8 0.73
0.71
0.7 0.66
0.6 0.56
0.53
0.50
0.5
0.4
0.30 0.31 0.32 0.32
0.28 0.29
0.3 0.24 0.25 0.26
0.19 0.20 0.19 0.20 0.20 0.21 0.21
0.18 0.19
0.2 0.20 0.17
0.15 0.16 0.19 0.11 0.11
0.15 0.09 0.10 0.10 0.10
0.06 0.07 0.08 0.08
0.1 0.05 0.05
0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
0.01
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Australia & Oceania Africa Europe Americas Asia

With digital audio users of 0.43 billion, China is the biggest market among
selected countries in 2023
0.49 0.50
0.50 0.47 0.48
0.45
0.45 0.43
0.39 0.40
0.40 0.36
0.35 0.31
0.30 0.28
0.26
0.25
0.20 0.17 0.17 0.17 0.18

0.15 0.16
0.13 0.14 0.14
0.15 0.11 0.11
0.10
0.10
0.03 0.03 0.03 0.03 0.04 0.03 0.03 0.04 0.04 0.04 0.04 0.04
0.05 0.03
0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04
0.02 0.02 0.02
0.00
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Germany United Kingdom United States China

In the Audio Advertising market, desktop ad spending‘s share reached 23.0% in
2023
Digital Audio Advertising market: Share by device
27% 25% 24% 24% 23% 23% 23% 23% 23% 23%
34% 31%
73% 75% 76% 76% 77% 77% 77% 77% 77% 77%
66% 69%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
83

In 2022, Spotify's premium and ad-supported income grew by 21% despite a
significant change to its organization
Company profile: Spotify
Spotify’s advertising and premium revenue, in billion US$ Number of Spotify employees
+21% (1) -16% (1)
Demand Side: 6.6

11.7
Advertiser
5.6 5.6
9.7
7.9 4.4
6.8 3.7
87%
5.3 3.0
88%
4.1 2.2
91%
3.0 90% 1.6
1.1 90% 1.4
0.7 1.9 90% 1.0
0.4
91% 91% 90%
87% 90% 0.3
12% 13%
13% 9% 9% 10% 10% 10% 10% 10% 9%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2011 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Premium Ad-Supported

TME, the leading digital audio player in China, has expanded its core business
beyond music streaming platforms
Company profile: Tencent Music Entertainment
Tencent Music Entertainment’s Core Business Tencent Music Entertainment Online Music Revenue, in million US$
Tencent Music Entertainment (TME) is one of the largest online music

entertainment platforms in China with over 800 million monthly active users in
2021. The company is truly an all-in-one online music and audio entertainment
+22.4%(1) 1,798.3 1,808.1
destination. TME’s core business is divided into Platforms with QQ Music (music
content), Kugou Music (online music entertainment), Kuwo Music (music
companionship), WeSing (music entertainment social platform), and Lazy Audio 1,432.6 548.1
648.3
(audio reading services) and Content & Services with TME UniChart (music charts),
TME Wave Chart (music ranking), and Ultimate Music (services for smart devices). 1,027.7 580.6
Platforms 805.0
515.7
441.5 1,260.0
1,150.0
852.0
Contents and Services
512.0
363.5
2018 2019 2020 2021 2022

Subscription Non-subscription

Germany, France, Italy, and Spain had high conversion rates from ad-supported
to subscription-based digital audio between 2019 and 2022
Deep dive: User engagement with subscription versus ad-supported services
Subscription-based digital audio, user engagement in % Ad-supported digital audio, user engagement in %
-17%
-10%
+14% -17%
+10%
+22% 52%
+17%
-12% 50%
+50% 47%
48% +42% 45%
45%
+64% 43% 43%
-6% 41%
41% 42% +45%
39% 39%
39% -18% 36%
37% 36% 37% 33%
35% 31%
29% 28%
26% 26% 23%
22%
20%
2019 2022 2019 2022
86 Notes: "Have you spent money on digital music content or podcasts in the past 12 months?”; Multi Pick; U.S.: n=59,934; China: n=24,123; Germany: n=36,171; France: n=12,195; UK: n=24,191; Italy: n=12,181; Spain: n=12,197
Sources: Statista Consumer Insights, as of November 2023

Compared to the U.S. and other European countries, awareness of digital audio
advertisements is highest in China, followed by Spain
Deep dive: Digital advertising touchpoints
Awareness of digital audio advertisements among users in 2022
22% 22%
20%
17%
16% 16%
15%
China Spain U.S. Italy UK Germany France
87 Notes: "Where have you come across digital advertisements in the past 4 weeks?”; Multi Pick; U.S.: n=59,934; China: n=24,123; German y: n=36,171; France: n=12,195; UK: n=24,191; Italy: n=12,181; Spain: n=12,197

Amazon and Spotify are top key players across all countries, except in China,
where local players dominate the market
Deep dive: Digital audio purchases by brand
Survey result of digital audio purchases by brand in 2022
45% 46% 45% 32% 57% 53% 53%
41% 48% 50% 43% 56% 66% 44%
40% 32% 21% 23% 21% 16% 42%
37% 23% 22% 25% 32% 32% 28%
26% 7% 4% 24%
24% 21% 13% 15% 20% 12% 20%
10% 10% 13% 32% 9% 8% 13%
88 Notes: "Which of these providers have you bought music downloads or streaming services from in the past 12 months?”; Multi Pick; U.S.: n=59,934; China: n=24,123; Germany: n=36,171; France: n=12,195; UK: n=24,191; Italy: n=12,181; Spain: n=12,197

As much as a third of marketers are expected to increase their digital audio
advertising budget by up to 10% in 2023
Deep dive: Change in digital media budgets
Growth of digital media budgets worldwide 2023, by format
7% 2% 2%
15% 10% 10%
30% 24%
35% 35% 33%
50% 36% 34%
36%
61%
49% 40% 64%

34% 44%
60%
38% 45%
46%
28%
21% 20% 16% 23%
10% 7% 7% 12%
2% 2% 3% 2% 2% 3% 2%
Digital audio Advanced TV / Paid social Retail media Gaming / Influencer Digital out- Digital display Paid search In-app
connected TV Metaverse marketing of-home
/ eSports
Significant increase (<+10%) Maintain 2022 budgets Significant decrease (<-10%)

Slight increase (between 0 and +10%) Slight decrease (between 0 and -10%)
89
Sources: Ebiquity; World Federation of Advertisers

As streaming and podcasts have had an increase in ad-supported audio time,
over-the-air radio has experienced significant losses
Deep dive: Share of ad-supported audio time
Ad-supported audio time worldwide 2017 vs. 2022, by format

73%
60%
14%
12% 11%
5% 6% 6% 6%
3% 4%
2%
Over-the-air AM/FM radio Podcasts AM/FM radio streaming Ad-supported Pandora Ad-supported Sirius XM Ad-supported Spotify
2017 2022
90 Notes: "Share of Ear,” Q1-Q4 2022. Persons 18+; SiriusXM: Ad-Supported: Spoken Word. Ad-Free: Music
Sources: Edison Research

For distributing audio ads, marketers are more likely to choose streamed music
over other audio content
Deep dive: Preference of audio ad type and benefits of audio programmatic ads
Likelihood of companies to use audio ads in surrounding content in 2022 Benefits of programmatic ads in digital audio in 2022
81% 79% 77% Increasing product awareness 37%
73% 72%
Enhanced audience targeting capabilities 35%
Easy to launch and manage 32%
High rates of audibility 31%
Cost efficiency 31%
Audience reach and scale 31%
Streamed music Online radio Podcasts Voice-enabled Audio articles Unique opportunities for targeting 28%
content such
as voice skills Campaign effectiveness 28%
and actions
91
Sources: Integral Ad Science; YouGov

Smart speakers have a high potential to create awareness, as nearly 50% of
those with smart speakers are more likely to consider a brand after hearing ads
Deep dive: Smart speaker advertising
Smart speaker owners respond to ads Global smart speaker volume estimate in million pieces
Less likely to
consider a brand
6%
336
More likely to 309
consider a brand 281
+22.0%(1)
254
228
Smart speaker owners 48% 201
who heard an ad on
171
smart speakers
140
No difference 47%
104
71
46
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
92 Notes: (1) CAGR: Compound Annual Growth Rate / average growth rate per year
Sources Statista Market Insights 2023; NPR; Edison Research

CHAPTER 2
Influencer Advertising:
Influencer advertising is a fast-growing type of advertising that leverages social
media influencers to endorse brands and products to their followers
Overview: Summary
Summary
Contrary to popular belief that influencers only emerged in the past few decades, significantly since 2019, particularly on TikTok. Also, the time users spend on
they have actually been around since the time of the Roman Empire when social media has been steadily increasing over the past year, and they have
gladiators used to endorse products and advertise goods on city billboards. become more interested in personalized content that caters to their preferences
Modern influencer marketing on social media started around 2005 when YouTube and interests. This indicates that there will be higher demand for micro and nano
was launched. Anyone can now become an influencer on social media and influencers who can produce content that appeals to their followers. The growth
promote brands and products to their followers. of social media platforms has also made it easier for marketers to track and
measure each influencer's results with whom they collaborate.
In the modern era of influencers, marketers use influencer advertising because it
is effective. They use it to increase traffic, raise brand awareness, reach Because influencer marketing allows companies to connect with consumers on a
audiences, increase sales, and improve engagement. Because of its precise deeper level than other forms of advertising, marketers are paying more
targeting and performance monitoring, the influencer marketing technique has attention to it. Brands will most likely shift from working with influencers as part
been shown to provide a higher return on investment for each campaign. of a campaign to working with them more as partners. Influencers can provide
content based on personal experiences, which creates more trust between them
The market is driven by everyone involved (marketers, influencers, audiences, and
and their followers. Influencer marketing is expected to continue gaining
social media platforms). There is more demand from marketers because
importance in advertising because of its accurate targeting and high return on
influencer advertising works so well in terms of return on investment (ROI) and
investment.
organic engagement. Further, the number of influencers has increased
94

Influencer marketing is a form of advertising that uses social media personalities
to promote brands and products to their followers
Market definition
Influencer Advertising refers to advertising that allows marketers to promote

products or services by collaborating with influencers on social media. Influencer
Advertising allows marketers to reach targeted audiences based on the
influencer’s performance and their follower profiles; they also have the ability to
measure the performance of campaigns. Influencer Advertising refers to all
advertising fees paid directly to influencers (or to their person of trust or
representative) for posting or streaming sponsored content (e.g., posts, videos,
and/or stories) on social media to promote products or services to their followers.
This sponsored content typically includes images, videos, live streams, and/or
text.
Influencer Advertising comprises advertising spending, users, and average

revenue per user. The market only displays B2B spending. Figures are based on
advertising spending and exclude agency commissions, rebates, production costs,
and taxes. For more information on the data displayed, use the info button right
next to the boxes.
95

Influencer Advertising accounted for 4.53% of the Digital Advertising market
revenue in 2023
Key Takeaways
Ad spending in the Influencer Advertising market is projected to reach US$30.8bn
in 2023. This market includes: This market excludes:
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of • The values of giveaway products as
• Advertising spending paid directly to well as services that influencers
11.06%, resulting in a projected market volume of US$52.0bn by 2028. influencers to post sponsored receive in exchange for reviews,
content mentions, or giveaways for their
In global comparison, most ad spending will be generated in China (US$16,760m in
followers
2023).
• Advertising spending allocated to
The average ad spending per internet user in the Influencer Advertising market is paid social media campaigns to boost
projected to amount to US$5.8 in 2023. content
• Affiliate commissions, i.e., the
commissions that are paid to
influencers when someone makes a
purchase based on their content or
links
• GMV(1) of transactions from
sponsored posts or live streams
96 Notes: (1) Gross merchandise volume

Influencer Advertising ad spending is estimated to increase at a CAGR(1) of
21.6% from 2017 to 2028
Market Size: Global
Influencer Advertising market: Advertising spending forecast in billion US$
52.05
47.80
43.54
39.33
+21.6% (1)
35.09
30.81
26.34
22.35
16.04
11.87
8.07
6.03
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

regions in 2023
+11.5%(1)
33.56
+10.7% (1) 19.47
+9.4% (1)
10.69
6.65 +11.0% (1) 6.43 +11.7% (1)
4.25
0.16 0.27 0.50 0.87
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

With ad spending of US$16.8 billion, China is the biggest market among selected
countries in 2023
+11.6% (1)
28.96
16.76
+10.5% (1)
8.12
+9.6% (1) +9.8% (1) +9.5% (1)
4.92
1.03 1.63 0.99 0.71
0.62 0.45
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Influencer Advertising average ad spending per internet user is estimated to
Market Size: Global
Influencer Advertising market: Average ad spending per social media user forecast in US$
9 8.41
7.90
8 7.39
6.87
7 6.34
5.78
6
5.16
5 4.61
4 3.50
2.79
3
2.08
2 1.69
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
100

Australia & Oceania has the biggest market in Influencer Advertising average ad
Market Size: Regional Comparison (1/2)
30
27.12
25.13
25 23.13
20.95
18.93
20
16.96
14.95
15 12.49 11.68
10.91
10.14
9.38
7.75 8.62 9.03
10 8.43 6.87 7.87 8.45
3.82 6.10 6.73 7.30 8.73
5.96 6.15 7.74 8.23
2.68 3.96 4.57 5.48 7.17
2.21 2.80 5.86 6.50
5 2.49 3.74 4.96 5.16
1.91 2.29 4.43
1.14 1.58 2.93 3.42
0.25 0.28 0.29 0.31 0.33 0.34 0.35
0.08 0.10 0.14 0.19 0.22
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Africa Europe Asia Americas Australia & Oceania
101

With average ad spending per internet user of US$16.1, the United Kingdom is
23.18 24.64
25
21.73 24.47
20.16 22.75
21.04 23.30
20 18.05
19.44 21.71
16.06 20.11
14.05 17.75
18.56
15 12.17 15.77 17.00
13.82 12.67
15.39 11.89
11.93 11.11
9.04 13.54 10.29
8.01 11.67 9.22 12.09
10 5.72 9.03 8.20 11.37
7.19 10.65
4.49 5.26 5.60 7.70 9.85
5.94 8.88
4.33 6.95 4.95 7.96
3.52 6.98
5 2.52 3.52
5.70
2.20 4.64
1.56
1.40 2.05 3.35
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France Germany China United States United Kingdom
102

In the Influencer Advertising market, mobile ad spending‘s share reached 82% in
2023
Influencer Advertising market: Share by device
21% 20% 19% 18% 17% 17% 17% 17% 17%

27% 25% 23%
79% 80% 81% 82% 83% 83% 83% 83% 83%

73% 75% 77%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
103

Influencer Advertising reach by social network are estimated to increase from
2017 to 2028
Market Size: Global
Number of social media users in millions
7
6.05
5.85
6 5.65
5.42
5.17
4.90
5 4.59
4.26
3.91
4 3.51
3.10
3 2.73
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
104

Asia has the biggest market in Influencer Advertising reach by social network in
2028
4.0 3.67
3.54
3.42
3.5 3.28
3.12
2.94
3.0 2.74
2.51
2.5 2.27
2.01
2.0 1.73
1.48
1.5
0.82 0.84 0.86 0.88 0.90 0.92
0.69 0.73 0.77 0.79
1.0 0.62 0.66 0.74 0.75
0.63 0.66 0.68 0.70 0.72 0.73
0.52 0.56 0.60
0.47 0.38 0.48 0.64 0.69
0.5 0.28 0.32 0.43 0.53 0.58
0.14 0.17 0.22
0.02 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
105

With reach by social network of 1.1 billion, China is the biggest market among
1.4
1.21 1.24
1.15 1.18
1.2 1.11
1.07
1.02
0.97
1.0 0.91
0.83
0.76
0.8 0.69
0.6
0.4 0.30 0.30 0.31 0.31 0.32 0.32 0.33 0.33

0.26 0.27 0.28 0.29
0.2 0.05 0.06 0.06 0.06 0.06 0.06 0.07 0.07 0.07 0.07 0.07
0.05 0.06 0.07 0.07
0.04 0.05 0.05 0.05 0.06 0.06 0.06 0.06 0.06
0.03 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France Germany United Kingdom United States China
106

Instagram is the most widely used platform for influencer campaigns in 2021,
with Facebook in a distant second place
Key Player Landscape: Most used platforms
Social media platforms used in influencer campaigns worldwide 2021

94%
43%
13%
10%
Instagram Facebook TikTok Youtube
107
Sources: klear
Influencers with a moderate number of followers occupied the largest
distribution share across all social media platforms in 2021
Key Player Landscape: Distribution of influencers on major platforms
Distribution of influencers worldwide in 2021 by number of followers

Instagram TikTok YouTube
100K-1M
>1M 100K-1M >1M >1M
20K-100K <15K
5.0% 4.1% 500K-1M
20K-100K 8.7%
0.3% 0.2% 5.0%
15.2%
27.9% 1K-5K
22.7% 1K-5K
100K-500K
16.4%
50.5% 51.4%
29.9% 50K-100K 6.7%

5K-20K
11.8%
44.1% 15K-50K
5K-20K
108
Sources: HypeAuditor; Influencer Marketing Hub

Most influencer marketing platforms were established between 2013 and 2016
Key Player Landscape: Influencer marketing platforms
Timeline of influencer marketing platforms
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
109
Sources: Simplilearn; Shopify; Crunchbase; Company information

In 2021, Facebook had over 2.5 billion users, whereas TikTok and Douyin
combined surpassed the number of Instagram users
Deep Dive: Number of Social Media users
Number of social media users by platform, in millions

2,930
2,830
2,722 2,854
2,562 2,606 2,725
2,369 2,563
2,240 2,436
1,995 2,132 2,136
2,051
1,898 1,922
1,795 1,719
1,582 1,759
1,407 1,406 1,469
1,331
1,408 1,213 1,245
1,071
805 868 1,035
608 653
377 397 415 429 440
310 303 348
313
163 347
2017 2018 2019 2020 2021 2022 2023 2024 2025
Facebook YouTube TikTok Instagram X
110

Led by YouTube and Facebook Video, video and social media channels have
entered the competition for the most mobile internet traffic
Deep Dive: Mobile internet traffic
Global share of mobile internet traffic by application in 2021
20.4%
11.3%
6.8% 7.0%
6.2%
5.4% 5.1%
4.2% 4.7% 5.0%
2.9% 2.7% 2.3% 1.8% 1.8% 1.6%
0.9% 0.7% 1.0%
0.4%
Video
Downstream Upstream
111
Sources: Sandvine
On average, influencers earned the most per post on the YouTube platform
Deep Dive: Influencer earnings per post
Global average price per post of influencers worldwide in 2021, by number of followers, in US$
Nano Micro Mid Macro Mega

Platform Price
(1K-5K) (5K-20K) (20K-100K) (100K-1M) (over 1M)
Average minimum price 10 15 32 185 1200
Average maximum price 50 110 350 2500

Instagram

TikTok

YouTube
112
Sources: HypeAuditor
The internet, especially video streaming and social networking, overshadows
other media in terms of time usage
Deep Dive: Media time usage and traffic by application type
Average daily amount of time spent (hh:mm) on media type in 2021 Mobile traffic share by application type in 2021
Internet Video streaming 48.9%

6:56 19.4%
(all devices)
Social networking 19.3%
TV (broadcast 16.6%
3:17
and streaming) 13.1%
Web 23.1%
Social media 2:22 6.7%
Messaging 20.4%
Press media
1:56 Gaming 4.3%
(online and physical) 1.9%
Marketplace 4.1%
Music streaming 1:33 1.2%
File sharing 1.3%
Video game consoles 1:10 6.6%
Cloud 1.1%
6.7%
Broadcast radio 0:58 0.9%
VPN and security
3.9%
Podcasts 0:52 Audio 0.2%
0.2%
Downstream Upstream
113 Noted: Based on surveys among internet users aged 18-64 years.
Sources: We Are Social; Hootsuite; DataReportal; Kepios; Global Web Index; Sandvine
Just one minute on the internet illustrates how much data is currently being
produced nowadays
Deep Dives: Amount of data create on the internet
Estimated amount of data created on the internet in one minute in 2021
28,000 subscribers watching 2m views
500 hours of content uploaded 1.6m US$ spent online
695,000 stories shared 2m Swipes
60 Sec
5,000 downloads 9,132 connections made
69m messages sent 197.6m Emails sent
114
Sources: Lori Lewis via AllAccess

The costliest influencer per post on Instagram was 20 times higher than the
equivalent on TikTok in 2022
Deep Dives: The most expensive influencers per post
Instagram sponsored price per post in 2022, in thousand US$ TikTok sponsored price per post in 2022, in thousand US$
Cristiano Ronaldo 2,400 Charlie D’Amelio 106
Kylie Jenner 1,840 Khabane Lame 92
Lionel Messi 1,780 Bella Poarch 67
Selena Gomez 1,740 Addison Rae 65
Dwayne Johnson 1,710 Will Smith 54
Kim Kardashian 1,690 Kimberly Loaiza 47
Ariana Grande 1,690 TikTok 44
Beyoncé 1,390 Zach King 44
Khloe Kardashian 1,320 Dixie D’Amelio 43
Kendall Jenner 1,290 Spencer Polanco Knight 41
115
Sources: Hopper HQ
Engagement rates in the beauty category are significantly higher for nano- and
micro-influencers compared to other influencer tiers
Deep Dive: Engagement rate by influencer tier
Engagement rate for beauty products in the U.S., by number of followers, in 2022
Nano Micro Mid Macro Top VIP

Platform Category
(1K-10K) (10K-50K) (50K-500K) (500K-1M) (1M-4M) (over 5M)
Hair care 3.17% 2.33% 1.68% 1.58% 1.81% 1.22%
Makeup & cosmetics 4.87% 2.85% 2.65% 2.19% 1.92% 2.22%
Skin care 5.34% 2.8% 2.13% 1.82% 1.61% 1.52%

Instagram
Hair care 5.66% 9.82% 4.75% 3.46% 3.95% 2.15%
Skin care 5.26% 4.78% 3.83% 2.16% 1.86% 1.95%

TikTok
Hair care 2.05% 1.21% 0.82% 0.95% 0.37% 0.23%
Skin care 1.95% 1.44% 0.79% 0.58% 0.47% 0.35%

YouTube
116
Sources: traackr
Marketers aim to increase engagement and traffic when hiring influencers
Deep Dive: Influencer performance metrics and top categories
Top metrics delivered by influencers according to marketers worldwide 2022 Distribution of Instagram influencers by categories
11.6%
Increased engagement 32% Lifestyle 13.8%
5.2%
Social media traffic increase 19% Beauty 8.6%
6.5%
Music
Brand metrics lift 11% 8.3%
5.6%
Photograph
Conversions 10% 6.6%
4.3%
Family
6.2%
Increased web traffic 9% 4.2%
Humor & fun & happiness
4.9%
Increased positive sentiment 6% 2.9%
Shows 4.2%
Sales lift 5% 3.3%
Modeling 3.9%
More efficient ad spend 3% 2.3%
Cinema & actors/actresses 3.8%
3.0%
Lower content production cost 3% Fitness & gym
3.3%
Others 2% 2020 2021
117
Sources: Influencer Marketing Hub

Each year, the number of TikTok influencers increases by more than 100%
Deep Dive: Number of influencers and sponsored posts
Number of TikTok influencers worldwide Number of #ad posts on Instagram, in million
+199%
106,104 +26% 3.8
3.0
+117%
35,528
16,394
2018 2019 2020 2020 2021
118
Sources: Influencer Marketing Hub; Upfluence; klear

Influencer marketing service companies demonstrated solid growth in the U.S.,
Europe, and Asia Pacific
Deep Dive: Number of companies offering influencer marketing services
Number of companies offering influencer marketing services, by region Number of companies offering influencer marketing services, worldwide
7,300
18,900
+33%
5,400 5,600
4,900 14,850
4,500
4,000 4,000
10,750
3,250
2,750
950 1,100
750
2019 2020 2021 2019 2020 2021
Middle East and Africa Asia Pacific Europe United States
119
Sources: Influencer Marketing Hub

Grin is one of the leading global influencer marketing platforms; the firm raised
US$110 million in funding in 2021
Company Profile: Grin Technologies Inc.
Key facts Funding Rounds, in million US$ 110.00

Revenue: 21.4 million US$ (2021)
Employees: 487 employees (2022)
Influencer profiles: 38 million profiles (2022)
10.00 16.00
Headquarter: Sacramento, United States 2.70 6.00
0.56
Founded 2014
Feb’15 Dec’18 Oct’19 Dec’20 May’21 Oct’21
About Strategy
GRIN is a software solution that assists brands in establishing direct relationships GRIN's main goal is to help brands connect with creators in an honest way. All real,
with their influencers, hence removing the need for the middlemen who are honest relationships are what make influencer marketing work. GRIN help brands
typically present in traditional influencer networks. The all-in-one Creator show creators how to get to know, try, believe in, and eventually love their
Management platform offered by GRIN makes the process of executing influencer products, which leads to organic endorsements. This leads to more authentic
marketing easy, from recruiting to fulfilling product orders to attributing revenue to content and greater consumer trust. Consumers recognize that the brand is more
pulling in content. than just a sponsor—they are a true partner. The end outcome is genuine
influencer marketing.
120
Sources: Company information; TrustRadius

HypeAuditor offers advanced technologies to analyze and identify successful
campaigns and influencers
Company Profile: HypeAuditor
Key facts Main technologies behind the success of HypeAuditor

Revenue: US$12.7 million (2021)
Employees: 118 employees (2022)
Influencer profiles: 60 million profiles (2022) Machine Learning Natural Language Computer Vision
Headquarter: Indianapolis, United States Processing
Founded 2018 Helps analyst and make Helps narrow the gap Identifies and classifies
decision without human between human object from visual world
intervention language and computer
understanding
About Strategy
HypeAuditor is an all-in-one solution that goes beyond a standard tool to equip HypeAuditor helps clients figure out if their influencer strategies are working or not
influencer marketers with the vital tools for running successful campaigns. Their by using its advanced data-driven analytics software. The tools help clients plan and
platform provides a digital space for clients to search through its database of more analyze marketing campaigns. However, the tools are unique in their ability to help
than 60 million profiles to locate influencers that are both relevant and trustworthy. clients to learn about competitors, such as their targets, their best content, and
Clients can create, monitor, and administer campaigns with core metrics what they promote, and clients can assess and evaluate their performance based
automatically calculated for them (CPE, EMV, ROI, engagement rate, and other on these findings.
crucial KPIs).
121
Sources: Company information; TrustRadius

CHAPTER 2
Search Advertising:
Over the past decade, the Search Advertising field has undergone significant
changes and growth
Overview: Summary
Summary
Pay-per-click advertisements were the original search advertising method; later, in Before the COVID-19 pandemic, search advertising was showing signs of steady
1998, Google founders Larry Page and Sergey Brin introduced an auction-based and consistent development. However, the pandemic has accelerated digital
PPC model. The highest bidders would appear at the top of the search results, adoption, resulting in exponential growth in search advertising, especially search
and lower bidders would appear further down. The method later turned into the advertising on marketplace platforms. Even though data privacy regulations have
approach that marketers use most frequently today. There are currently six major been tightened globally and search engine platforms have taken steps to
search engines, four of which are international: Google, Bing, Yahoo!, and emphasize the importance of privacy, these platforms have already found a way
DuckDuckGo. Yandex focuses on nations that speak Russian, while Baidu focuses to collect data in a more ethical and consent-based manner. In the coming years,
on nations that speak Chinese. Due to its massive user base and effective internal we anticipate steady growth in search advertising across search engine and
advertising network, Google is by far the most popular among advertisers. marketplace platforms.
The development of the internet infrastructure and the decreasing prices of

internet-enabled devices such as PCs and smartphones are the main causes for
the growth in search advertising. The internet infrastructure has seen
tremendous transformation in the past ten years and is now quicker and cheaper.
Because internet-enabled devices have become more affordable, allowing more
people to purchase them and use them daily.
123

Search Advertising is the market for ads on search result page that brands pay
or bid for to rank higher and get more clicks
Market definition
Search Advertising, also called search engine advertising (SEA) or paid search
advertising, refers to advertisements displayed on search results pages above or
next to the organic search results. Brands can create search advertising
campaigns. Paying a fee or bidding will give a better ranking each time targeted
audiences search and click on the campaign’s ads. These advertisements are
usually text based but can be displayed as images or videos where applicable.
Search Advertising comprises advertising spending, users, average revenue per

user, and key players. The market only displays B2B spending. Figures are based
on advertising spending and exclude agency commissions, rebates, production
costs, and taxes. Key players in Search Advertising include Google, Bing, Baidu,
Amazon, and Alibaba. For more information on the data displayed, use the info
button right next to the boxes.
124

Search Advertising accounted for 41.09% of the Digital Advertising market
revenue in 2023
Key Takeaways
Ad spending in the Search Advertising market is projected to reach US$279.3bn in
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of • Search Engine Advertising (SEA) • Search engine optimization (SEO)
8.37%, resulting in a projected market volume of US$417.4bn by 2028.
• Keyword advertising
In global comparison, most ad spending will be generated in the United States
(US$118bn in 2023). • Sponsored links
In the Search Advertising market, US$251.1bn of total ad spending will be
The average ad spending per internet user in the Search Advertising market is
The market share of Google amounts to an estimated 59% of the Search
Advertising market and the selected region in 2022.
125

Search Advertising ad spending is estimated to increase at a CAGR(1) of 13.3%
from 2017 to 2028
Market Size: Global
Search Advertising market: Advertising spending forecast in billion US$
417.39
389.83
362.27
+13.3% (1) 334.40
306.67
279.35
251.72
230.25
167.48
151.44
131.48
105.31
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

+9.4% (1)
208.48
+7.4% (1)
+7.7% (1) 133.22 116.10
81.99 81.25
56.55
+9.7% (1) +4.2% (1)
1.64 2.61 6.69 8.20
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

+9.8% (1)
188.56
+7.3% (1) 118.16
79.78
+7.8% (1)
56.11
+8.2% (1) +6.8% (1)
31.19
21.45
8.13 12.04 7.55
5.44
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Search Advertising average ad spending per internet user is estimated to
Market Size: Global
Search Advertising market: Average ad spending per internet user forecast in US$
70 67.42
64.44
61.47
58.43
60 55.39
52.39
49.31
50 47.45
40 35.62 36.59
33.89
29.46
30
20
10
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
129

Australia & Oceania has the biggest market in Search Advertising average ad
300
248.33 254.61
235.60 242.04
250 225.11 231.39 227.58
216.68 214.57
203.30 201.56
200 188.09
174.36
160.55 160.58
148.48 147.33
150 131.76 137.66
111.62 107.66
103.17 101.61
91.47 89.49 95.57
100 80.74 77.91 83.66
66.31 66.61 71.61
44.85 48.23 49.91
40.04
50 24.47 25.66 26.70 27.83 28.95 30.07 31.20
19.32 19.81 18.86 24.14
16.57
2.06 2.21 2.15 2.01 2.57 2.71 2.83 2.95 3.09 3.21 3.32 3.43
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
130

600 568.25
531.01
493.77
500 472.92
455.54 445.17
416.93 417.42
378.63 389.34
400 361.46
342.30 334.75
315.72 308.72
300 274.99
232.19
166.28 181.16 200.02
200 207.05 145.06 154.41
194.53 126.22 135.70
137.83 173.18 107.63 116.74 128.36
91.14 98.76 114.83 121.60
96.40 102.92 107.98
54.07 61.91 66.41 68.24 78.13 89.16
100 54.53 56.92
36.58 46.06
48.25 48.63 51.51 53.90 56.41 58.99 61.55 64.12
29.29 35.72 38.28 36.87
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
China France Germany United Kingdom United States
131

In the Search Advertising market, mobile ad spending‘s share reached 71% in
2023
Search Advertising market: Share by device
44% 42% 41% 41% 40%

50% 48% 46%
55% 52%
60% 58%
56% 58% 59% 59% 60%

50% 52% 54%
45% 48%
40% 42%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
132

In 2023, Google had the highest share in Search Advertising
Market Size: Global
Brand share in 2023
Yandex
Sogou
Naver
133

Google Search & other revenue grew 43% in 2021, and have the largest share of
Google advertising revenue
Company profile: Google (1/2)
Google Search & other revenue in billion US$ Google advertising revenue segment distribution in 2021
+43%
149
14%
+6%
104
98
15%
71%
2019 2020 2021 Google Search & other Google Network YouTube ads
134
Sources: Company Information

Google has reached more than 12 billion search queries in the U.S. since the
COVID-19 pandemic
Company profile: Google (2/2)
Number of search queries(1) in the U.S. in billion
COVID-19 pandemic
13.2
12.3 12.5 12.5
11.7 11.7
12.6 11.1
10.3 11.3 10.2 10.1
9.7
9.0
7.0
5.1 5.4 5.5

4.2 4.0
3.4 3.6 3.7 3.5 3.5
2.7 2.9 2.7 2.7
2.4 2.3 2.3 2.0 2.2 2.3 2.3
1.7 1.9 2.0 1.8 1.9
1.2 2.4 2.3
1.0
0.6 0.5 0.5 0.5 0.4 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1
0.5 0.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Google Sites Microsoft Sites Verizon Media Ask Network
135 Notes: (1) Desktop only, home and work internet locations
Sources: comScore
Advertising is Amazon’s fastest-growing revenue source and is expected to grow
25% from the previous year with over 10% of the total revenue
Company profile: Amazon
Amazon’s advertising and non-advertising revenue in billion US$ Amazon‘s revenue distribution
+9.9%
Demand Side: +25.2%

Advertiser 481
438
366
2022e 13% 5% 2019 95% 87%

268
31 39
13 20
2019 2020 2021 2022e

Advertising Non-advertising

In a country comparison, search engines as sources of inspiration are most
popular in Italy
Deep dive: Search engines as sources of inspiration
Usage of search engines as sources of inspiration for new products in 2022
54%
51% 50% 50%
45%
43%
35%
Italy UK Germany Spain France U.S. China
137 Notes: "How do you usually find out about new interesting products?”; Multi Pick; U.S.: n=50,3985; China: n=24,172; Germany: n=30,146; France: n=12,196; UK: n=18,200; Italy: n=12,187; Spain: n=12,207

Search advertising is becoming more expensive; CPC(1) is gradually increasing
while CTR(2) is declining
Deep dive: Search advertising conversion rate
Search advertising clickthrough rate (CTR) & cost per click (CPC) worldwide
2.8% 2.8%
2.7% 2.7% 2.7% 2.7%
2.5% 2.5%
2.2% 2.2% 2.2% 2.2%
2.0%
1.8% 1.7% 1.7%
1.7% 1.7% 1.6%
1.6% 1.6%
0.63 0.69 0.68 0.69 0.71 0.70

0.59 0.62 0.54 0.58 0.60 0.62
0.50 0.50 0.49 0.51 0.47 0.48 0.46 0.47 0.52
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 2022
Clickthrough rate (CTR) Cost-per-click (CPC) in US$
138 Notes: (1) Cost per click (2) Clickthrough rate
Sources: Skai
CHAPTER 2
Video Advertising:
The growth of Digital Video Advertising is driven by the improvement of internet
infrastructure and the increased consumption of online video content
Overview: Summary
Summary
Digital video advertising has changed over time: It started with video ads on substantial growth because connected devices have become cheaper over time,
computer screens, then moved on to YouTube, mobile screens, social media allowing more people to purchase them and use them daily.
platforms, connected devices, and video-on-demand. Digital video advertising has
Even though digital video advertising was already growing before the COVID-19
become more popular over time as people watch more online video content,
pandemic, it experienced a rapid increase since the pandemic started, because
moving away from TV and toward smart connected devices. As expected, OTT
people have been spending significantly more time on consuming digital video
(over-the-top) advertising is used by marketers for storytelling. OTT content,
content. TikTok’s increasing popularity during the pandemic, the noticeable
which can be delivered on demand and directly to users' smart TVs, computers,
prevalence of the short video format, and the increase in ad-supported video-on-
or smartphones that are connected to the internet, is ushering in a new era of
demand are the main reasons why people spend more time on digital video
video advertising.
content. Digital video advertising will continue to gain importance significantly
The main cause for the increase in digital video ads is the improvement of the because consumers watch more digital video content.
internet infrastructure and the affordability of smart devices that can connect to
the internet, such as smart TVs, computers, and smartphones. In the past ten
years, the internet infrastructure has changed significantly and is now more
accessible, faster, and more affordable. Digital video advertising has experienced
140

Video Advertising is an important part of the digital advertising market, which
covers ads in online videos, apps, social media, or streaming contents
Market definition
Video Advertising includes all ad formats within webpage-based videos, app-

based video players, social media, or streaming apps on computer screens,
smartphones, tablets, and other internet-connected devices. Videos that
seamlessly match the form and function of the environment (e.g., news websites,
video platforms) in which they appear (so-called native advertising) are also
included in Video Advertising.
Video Advertising comprises advertising spending, connected-TV advertising

spending, users, average revenue per user, and user demographic. The market
only displays B2B spending. Figures are based on Video Advertising spending and
exclude agency commissions, rebates, production costs, and taxes. Key players in
Video Advertising include Comcast Corp., The Walt Disney Company, YouTube,
TikTok, and Facebook. For more information on the data displayed, use the info
button right next to the boxes.
141

Video Advertising accounted for 25.98% of the Digital Advertising market
revenue in 2023
Key Takeaways
Ad spending in the Video Advertising market is projected to reach US$176.6bn in
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of • All ad formats within webpage- • Traditional TV advertising video
6.49%, resulting in a projected market volume of US$241.9bn by 2028. based videos, app-based video formats broadcasted over traditional
players, social media networks, or transmission channels (e.g., DTT,
With a projected market volume of US$76,970m in 2023, most revenue will be social media apps cable, satellite)
generated in the United States.
• Pre-roll, mid-roll, and post-roll video • Addressable TV ads, targeted
Connected TV ad spending in the Video Advertising market is projected to reach ads advertising to individual households
US$29.8bn in 2023. via set-top boxes; including cable and
• Text- or image-based overlays that satellite using addressable
Connected TV is expected to show an annual growth rate (CAGR 2023-2028) of appear in video players technologies such as Dynamic Ad
11.50%, resulting in a projected market volume of US$51.4bn by 2028. Insertion (DAI)
• Native advertising
Ad spending on short-form videos in the Video Advertising market is projected to
• Connected TV advertising
reach US$88.1bn in 2023.
• Ad spending on short-form videos
142

Video Advertising ad spending is estimated to increase at a CAGR(1) of 19.0%
from 2017 to 2028
Market Size: Global
Digital Video Advertising market: Advertising spending forecast in billion US$
241.93
229.80
+19.0% (1) 217.67
205.13
191.32
176.63
160.24
148.64
107.54
75.96
54.10
35.54
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

+7.7% (1)
124.45
+5.6% (1)
85.92 81.95
62.46
+4.5% (1)
29.86 +5.7% (1)

23.95 +5.3% (1)
0.88 1.14 3.44 4.54
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

+7.9% (1)
112.77
+5.7% (1)
76.97
65.09
49.32
+3.1% (1)
+5.8% (1) +5.5% (1)
9.09 10.61
3.10 4.11 2.24 2.93
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Video Advertising average ad spending per internet user is estimated to
Market Size: Global
Digital Video Advertising market: Average ad spending per internet user forecast in US$
39.04
40 37.99
36.93
35.84
34.55
35 33.13
30.63 31.39
30
25 23.50
20 17.86
13.94
15
9.94
10
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
146

Australia & Oceania has the biggest market in Video Advertising average ad
150 141.05
136.83
132.61
128.17 135.78
122.60 129.83
115.63 117.60 123.87
107.13 110.86
102.01 103.56
95.58
100 91.30
80.30
65.55 68.15
53.11 52.02
50 38.91 38.11 39.19
35.22 34.65 35.96 37.03
29.63 30.67 32.99
26.44 23.99
18.91 18.53 18.98 19.72 20.29 20.84 21.23 21.61 22.00
11.17 15.45 13.90
4.97 7.02 9.66
0.96 1.06 1.25 1.52 1.49 1.51 1.51 1.51 1.50 1.49 1.49
0.73
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
147

339.73
350 322.33
304.94
300 286.66
267.28
246.62
250 224.46
211.12
200
152.54 153.34 155.83 158.34 160.86
141.94 149.02
150 130.97
113.47 121.89
95.53
100 55.01 82.98 75.59 49.93 52.70
45.27 47.02 48.72 51.10
41.37 60.36 36.28 43.02 52.27
30.67 41.18 38.44 41.03 43.57 46.00 48.27 50.49
17.74 18.93 24.02 29.07
50
13.21 11.72 23.59
21.31 18.34 29.63 42.24 44.38 46.20 47.98 49.75
7.95 34.93 36.75 39.71
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France Germany China United Kingdom United States
148

In the Digital Video Advertising market, mobile ad spending‘s share reached 69%
in 2023
Digital Video Advertising market: Share by device
23% 22% 20%

28% 26%
34% 31%
41% 37%
50% 46%
53%
77% 78% 80%

72% 74%
66% 69%
59% 63%
50% 54%
47%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
149

Connected TV advertising shows average growth rates of around 24.5% per year
Market Size: Global
Connected TV Advertising market: Advertising spending forecast in billion US$
51.35
47.56
43.77
39.29
+24.5% (1)
34.37
29.79
24.48
20.27
15.19
10.51
7.19
4.63
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

With Connected TV ad spending of US$20.2 billion, the Americas is the biggest
market among selected regions in 2023
+13.0% (1)
37.32
20.25
+9.0% (1)
+5.8% (1) 9.87

+5.9% (1) 6.41 +4.8% (1)
2.77 3.68
0.03 0.04 0.34 0.43
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

With Connected TV ad spending of US$19.3 billion, the United States is the
biggest market among selected countries in 2023
+13.4% (1)
36.13
19.30
+10.0% (1)
8.22 +5.6% (1) +4.7% (1) +5.2% (1)

5.10
0.86 1.13 0.39 0.49 0.28 0.36
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Video Advertising ad spending on short-form videos is estimated to increase at
a CAGR(1) of 50.9% from 2017 to 2028
Market Size: Global
Short-form Videos Advertising: Advertising spending forecast in billion US$
145.79
134.09
122.40
+50.9% (1) 111.01
99.43
88.06
76.48
62.21
32.32
12.87
1.58 4.60
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

With ad spending on short-form videos of US$38.9 billion, Asia is the biggest
market among selected regions in 2023
+13.0% (1)
+8.3% (1)
68.23
57.90
37.01 38.88
+9.9% (1)
16.66 +11.2% (1)

+11.0% (1)
10.40
0.38 0.64 1.38 2.35
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

With ad spending on short-form videos of US$34.0 billion, China is the biggest
market among selected countries in 2023
+13.2% (1)
+8.0% (1) 62.22
49.92
34.00 33.44
+8.6% (1)
+11.5%(1) +11.1% (1)
6.19
4.09 2.14
1.24 1.05 1.78
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

The Walt Disney Company will add more ad-supported streaming services by
launching an ad-supported version of Disney+ by the end of 2022
Company profile: The Walt Disney Company
Direct-to-consumer revenue by source, in million US$ Overview of direct-to-consumer

The Walt Disney Company’s direct-to-consumer businesses consist of subscription
+57%
services that provide video streaming of general entertainment, family and sports
12,020 programs, and digital content distribution services.
+43% Streaming service with Streaming service without

+70% adverting sales adverting sales
7,645
3,366
2,357
933
550
2020 2021 *Disney+ will offer ad-supported

TV/SVOD distribution and other Advertising Subscription fees streaming in late 2022
156

YouTube ad revenue increased by 38% during the COVID-19 pandemic and had
the highest number of hours watched among video and streaming apps
Company profile: YouTube
Global advertising revenues of YouTube, in million US$ Global video apps on Android in January 2021, by monthly hours watched
COVID-19 pandemic 23
29 13
10
+38% (1)
8
20
7
15 6
11 5
8 5
2017 2018 2019 2020 2021
Sources: Company information; We Are Social

Product demos are the most popular video type used by marketers in 2020
Deep dive: Types of B2B videos used worldwide
Leading types of B2B videos used worldwide in 2020
Product demos 63%

How-to’s 51%
Explainers 51%
Webinars 51%
Training videos 47%
Social videos 41%
One-to-one videos 40%
Customer testimonials 38%
Livestreams 32%
Thought leadership 29%
Internal communication videos 29%
Culture videos 26%
Personalized videos 16%
158
Sources: Vidyard
While YouTube is the most popular video platform for marketing purposes,
TikTok has gained the most attention from marketers in the past year
Deep dive: Video platforms used by marketers
Video platforms used for marketing purposes worldwide
89% 88%
70% 68% 68%

65% 63%
58%
53%
46%
31% 29% 33%

28% 26% 30%
27%
24%
20%
17%
12% 10% 12% 14%
6% 6%
YouTube Facebook LinkedIn Instagram Webinar Twitter Facebook Instagram Interactive TikTok 360 video Virtual Snapchat
video video video live TV video reality video
2021 2022
159
Sources: Wyzowl
Connected TV has an opportunity to be the fastest-growing platform for video
advertising
Deep dive: Global video advertising budgets
Change in global digital video advertising budgets in 2020, by platform
25%
18% 18%
12%
Connected TV Desktop Mobile web In-app
160
Sources: PubMatic
CHAPTER 2
Social Media Advertising:

Social Media Advertising has grown rapidly due to the development of internet
infrastructure and adoption of smart devices
Overview: Summary
Summary
The global number of social media users reached 4.2 billion in 2021 and is Social media advertising had been expanding since before the COVID-19
projected to increase to 5.8 billion users by 2027. Social media has increasingly pandemic. However, the pandemic has increased the usage of social media,
impacted our daily lives since its emergence in 2005. Unsurprisingly, marketers especially for video content, which has caused exponential growth in social media
now use social media as their main method of advertising. They spend a advertising. People are spending increasingly more time on social media, mainly
significant amount of money to reach consumers on social media and are due to TikTok’s boom during the pandemic and the significant increase in
constantly thinking of new, creative methods to improve their social media Instagram’s video content. Thanks to this increased content consumption, social
advertising strategies. media advertising has grown significantly.
The development of the internet infrastructure and the accessibility of

smartphones are the main forces behind the expansion of social media
advertising. Over the past ten years, the internet infrastructure has undergone a
significant transformation. It is now quicker, less expensive, and more accessible.
While smartphones have gotten cheaper over time, phones were a luxury item for
professionals less than 20 years ago. Nowadays, people use their smartphones
daily, which has led to a substantial rise in social media usage.
162

Social Media Advertising is the market for paid ads on social media platforms to
promote brands, products, and services to target audiences
Market definition
Social Media Advertising is a form of online digital marketing in which paid banner
and video ad campaigns are run on social media platforms to reach the target
audiences. Marketers can promote brands, products, and services and increase
purchase intention.
Social Media Advertising comprises advertising spending, users, average revenue

per user, and key players. The market only displays B2B spending. Figures are
based on advertising spending and exclude agency commissions, rebates,
production costs, and taxes. Key players in Social Media Advertising include
Facebook, Instagram, Twitter, TikTok, LinkedIn, Weibo, Naver, and Kakao. For
more information on the data displayed, use the info button right next to the
boxes.
163

Social Media Advertising accounted for 30% of the Digital Advertising market
revenue in 2023
Key Takeaways
Ad spending in the Social Media Advertising market is projected to reach
US$207.1bn in 2023. This market includes: This market excludes:
Ad spending is expected to show an annual growth rate (CAGR 2023-2028) of • All ad spending generated by social • Ads within online games playable on
4.31%, resulting in a projected market volume of US$255.8bn by 2028. networks social networks
In global comparison, most ad spending will be generated in the United States • Sponsored posts • Revenue generated from
(US$72,330m in 2023). membership subscriptions or
premium fees
In the Social Media Advertising market, US$255.8bn of total ad spending will be
In the Social Media Advertising market, the number of users is expected to amount
to 6,054.0m users by 2028.
164

Social Media Advertising ad spending are estimated to increase at a CAGR(1) of
15.7% from 2017 to 2028
Market Size: Global
Social Media Advertising market: Advertising spending forecast in billion US$
255.78
+15.7% (1) 247.31
238.85
230.05
219.80
207.08
189.50
180.92
132.77
97.50
73.28
51.32
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

regions in 2023
+4.7% (1)
+4.1% (1)
113.26
100.23
90.02
81.81
+3.7% (1)
36.06
30.11
+4.7% (1) +3.7% (1)
1.08 1.36 4.05 4.86
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

+4.6% (1) +4.0% (1)
89.51 88.08
71.38 72.33
+2.1% (1)
+5.0% (1) +3.6% (1)
9.76 10.85
3.84 4.90 2.93 3.50
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

Social Media Advertising average ad spending per internet user is estimated to
Market Size: Global
Social Media Advertising market: Average ad spending per internet user forecast in US$
45
40.53 40.88 41.24
39.70 40.20
38.84
40 37.28 37.12
35
29.01
30
25 22.93
18.89
20
14.36
15
10
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
168

Australia & Oceania has the biggest market in Social Media Advertising average
ad spending per internet user in 2028
160 148.59 150.95

143.68 146.22
140.44
136.24
140 128.42 130.79
120 107.56 109.26

105.37 101.88 104.11 105.87
98.62
94.62 90.95 93.22
100 88.06
80 73.45 73.36
60.06
60 48.31 46.34 47.32
41.49 43.15 44.37 45.35
36.31 37.94 38.75
40 29.85 27.60 27.11 28.43 29.10 29.51 29.79 30.09 30.40
20.92 24.78
16.19 20.12
20 10.74 14.16
7.50
1.06 1.24 1.28 1.44 1.88 1.84 1.87 1.86 1.85 1.82 1.80 1.78
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
169

300
259.65 265.17
248.34 254.13
241.34
250 231.76
216.85
208.89
200
165.34 159.71 161.28 162.89 164.50
152.31 157.17
142.39
150 132.33 134.16
103.78 103.57
87.65 71.85
100 75.90 75.04
65.53 67.57 68.90 69.87 70.86
56.83 62.33 61.71 62.80
25.52 43.02 56.67 58.78 60.79
50 18.83 31.49 48.42 49.67 51.97 54.12
22.61 37.65 56.81 58.17 59.53
17.73 27.20 50.87 53.83 55.41
44.07 46.67
11.26 17.87 26.88 33.43
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Germany France China United Kingdom United States
170

Social Media Advertising reach by social network is estimated to increase from
2017 to 2028
Market Size: Global
Number of social media users, in millions
7
6.05
5.85
6 5.65
5.42
5.17
4.90
5 4.59
4.26
3.91
4 3.51
3.10
3 2.73
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
171

Asia has the biggest market in Social Media Advertising reach by social network
in 2028
4.0 3.67
3.54
3.42
3.5 3.28
3.12
2.94
3.0 2.74
2.51
2.5 2.27
2.01
2.0 1.73
1.48
1.5
0.82 0.84 0.86 0.88 0.90 0.92
0.69 0.73 0.77 0.79
1.0 0.62 0.66 0.74 0.75
0.63 0.66 0.68 0.70 0.72 0.73
0.52 0.56 0.60
0.47 0.38 0.48 0.64 0.69
0.5 0.28 0.32 0.43 0.53 0.58
0.14 0.17 0.22
0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03
0.02
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
172

With reach by social network of 1.1 billion, China is the biggest market among
1.4
1.21 1.24
1.15 1.18
1.2 1.11
1.07
1.02
0.97
1.0 0.91
0.83
0.76
0.8 0.69
0.6
0.4 0.30 0.30 0.31 0.31 0.32 0.32 0.33 0.33

0.26 0.27 0.28 0.29
0.05 0.06 0.07 0.07 0.07
0.2 0.05 0.06 0.06 0.07 0.07
0.04 0.05 0.05
0.06 0.05 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.07 0.07
0.03 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.06 0.06 0.06
0.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France Germany United Kingdom United States China
173

In the Social Media Advertising market, mobile ad spending‘s share reached 82%
in 2023
Social Media Advertising market: Share by device
21% 19% 18% 18% 17% 17% 17% 17% 17%

27% 24%
30%
79% 81% 82% 82% 83% 83% 83% 83% 83%

73% 76%
70%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Mobile Desktop
174

In 2022, the Facebook platform has been facing significantly slow growth in
monthly active users
Company profile: Meta Platforms, Inc. (1/2)
Facebook’s monthly active uses in million and timeline of events
+4.1% +0.8%
2,797 2,912 2,934

2,498
2,320
2,129
1,860
1,591
1,393
1,228
1,056
845
608
360
6 12 58 145
1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Facebook
Launched Facebook faces rebranded to
Established Developed Acquired a concern of
mobile app Meta
Facebook Facebook Group Instagram
data privacy by
the Congress Antitrust lawsuits
Expanded Developed Acquired Facebook's fake news
internationally video call WhatsApp crisis in U.S. election against Facebook
175

Compared with other companies, public trust in Meta protecting personal data
is low
Company profile: Meta Platforms, Inc. (2/2)
Trust in protecting personal data
26% 30% 30%
25% 27% 21%
25% 21% 20%
23% 19% 17%
19% 14% 16%
10% 13% 12%
10% 13% 10%
7% 12% 6%
U.S. China Germany
176 Notes: "Which of these companies leads in terms of protecting personal data?“; Multi Pick; U.S.: n=1,953; China: n=2,003; Germany: n =1,992; Respondents that use the respective brand

The combined advertising revenue of TikTok and Douyin accounts for nearly
80% of ByteDance’s total income
Company profile: ByteDance
ByteDance’s revenue from 2019 to 2021, in billion US$ ByteDance’s revenue contribution in 2021
58
Other revenues
23%
+84%(1)
34
17
77%
Advertising revenue
2019 2020 2021
Sources: Reuters
While Facebook had over 2,500 million users in 2021, TikTok and Douyin’s
combined number of users surpassed Instagram’s
Deep dive: Number of social media users
Number of active social media users by platform, in million

3,191
3,101
3,011
2,914
2,811
2,701
2,535 2,582
2,345 2,299
2,198 2,249
1,990 2,136
2,050
1,922
1,779 1,720
1,561 1,561 1,605
1,466 1,518
1,407 1,329 1,405
1,214 1,244
1,072
806 868 1,036 793 811 828 845
609 737 716 746 771
653 701
580 682 696
494 644 592 614 634 652 667
400 499 539 568
446
163
347
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Facebook TikTok/Douyin Instagram LinkedIn Sina Weibo
178

Messenger apps such as WhatsApp and Facebook Messenger have vast
advertising potential
Deep dive: Messenger apps
Monetization lies ahead
A look at the social media network landscape in the recent years reveals a growing
trend toward mobile social network apps such as Instagram or messenger apps
such as Snapchat whose usability focuses on mobile devices. The whole user
interface of Snapchat, for instance, is designed for vertical screens. In general,
messenger apps are considered social networks. New app features such as status,
stories, or groups have typical characteristics of social networks such as building
profiles, sharing moments in the form of photos or videos, and interacting with like-
minded people. It is surprising that only a few messengers, e.g., WeChat in China,
are fully monetized. It seems even more odd, considering that Facebook’s entire
business model is based on monetizing its platform by selling advertising space.
Together, Facebook’s messenger apps WhatsApp and Facebook Messenger list
almost 3 billion users and therefore have huge potential, giving the company a
favorable starting point. However, we expect that messenger apps will soon be fully
monetized, which will cause significant growth of the Social Media Advertising
revenue. Innovative apps such as TikTok, which are especially popular among
children and teenagers, are already working on including advertisements.
179
CHAPTER 2
In-App Advertising:
The In-App Advertising market has expanded considerably over the past year
and will continue to play a significant role in the Digital Advertising market
Overview
Summary
Thanks to the widespread use of smartphones and mobile apps, in-app Future developments in AI will further increase the potential of in-app advertising.
advertising has experienced significant growth. In-app ad spending surged after AI will automatically produce text, images, and video material for personalized
advertisers saw the potential for applications to reach a wide audience. In-app advertisements in real time. The integration of smart cameras that use emotion
advertising primarily consisted of banners and interstitials. These advertisements analysis will make it possible to adapt advertisements to the facial expressions of
frequently caused disruptions and did not offer a customized customer users to boost engagement. Moreover, AI could reduce concerns among
experience. marketers about data privacy, specifically, AI’s capacity to analyze massive data
enables accurate audience segmentation while still prioritizing privacy. By
In-app advertising currently uses AI to improve targeting, boost ROI, expand
leveraging AI, in-app advertising can combine precise targeting, broad reach, and
reach, and increase engagement. Due to its capabilities, advertisers are now able
user engagement while also conforming to strict privacy laws.
to deliver advertisements to the most relevant users with more certainty.
Additionally, AI helps create personalized text content that optimizes ad
messaging for better performance. Social media apps, gaming apps, and
shopping apps have become the most widely used platforms for in-app
advertising. Because these applications offer a sizable user base and
opportunities for targeted advertising, they are ideal for businesses looking to
maximize the impact of their advertisements within the app ecosystem.
181
In-app advertising shows ads in mobile apps with different formats and
categories, and targets users’ preferences and behavior
Market definition
In-app advertising refers to the promotion of products or services within a mobile In-app advertising comprises advertising spending, users, and average revenue
application and to ad spending on displaying advertisements within an per user. The market only displays B2B spending. Figures are based on in-app
application. This includes various formats, such as banner ads, interstitial ads, advertising spending and exclude agency commissions, rebates, production costs,
video ads, and native ads, that are integrated into the mobile app's user interface and taxes. For more information on the data displayed and definition of each
and appear as part of the app's content. The ads are usually shown to target category, use the info button right next to the boxes.
users based on their preferences and online behavior.
In-app advertising consists of 21 app categories, books & reference, business,

education, entertainment, finance, food & drink, game, health & fitness, lifestyle,
medical, music, navigation, news & magazines, photo & video, productivity,
shopping, social networking, sports, travel, utilities, and weather.
182

In 2023, the In-App Advertising market will reach US$314.5 billion with a revenue
share of 46.2% in the Digital Advertising market
Key Takeaways
Ad spending in the In-App Advertising market is projected to reach US$314.50bn in
Ad spending is expected to show an annual growth rate (CAGR 2023-2027) of • Advertising that is displayed within • Advertising that is displayed within
10.10%, resulting in a projected market volume of US$462.20bn by 2027. mobile applications includes a variety mobile browsers or on mobile
of ad types, including native ads, websites.
In global comparison, most ad spending will be generated in China (US$119.10bn in interstitial ads, video ads, and banner
2023). ads.
The average ad spending per internet user in the In-App Advertising market is
183

In-App Advertising ad spending is estimated to increase at a CAGR(1) of 18.5%
from 2017 to 2028
Market Size: Global
In-App Advertising market: Advertising spending forecast in billion US$
498.16
462.23
426.31
+18.5% (1) 390.65
352.69
314.53
272.69
241.61
174.19
136.65
103.89
76.91
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

regions in 2023
+10.6% (1) +8.9% (1)
212.31 215.40
140.59
128.41
+9.3% (1)
60.00
+8.9% (1) +7.7% (1)
38.39
1.22 1.87 5.93 8.58
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

With ad spending of US$119.0 billion, China is the biggest market among
+10.8% (1)
+8.9% (1)
192.46
182.54
119.05 115.42
+9.3% (1)
+9.6% (1) +9.9% (1)
20.53
13.17 9.79
6.20 3.19 5.11
2023 2028 2023 2028 2023 2028 2023 2028 2023 2028

In-App Advertising average ad spending per internet user is estimated to
Market Size: Global
In-App Advertising market: Average ad spending per internet user forecast in US$
90
80.49
80 76.41
72.34
68.26
70 63.70
58.99
60 53.42
49.79
50
38.06
40
32.14
30 26.78
21.51
20
10
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
187

Australia & Oceania has the biggest market in In-App Advertising average ad
300
266.69
254.10
241.51
250 228.48 231.81
214.70 217.06
199.42 202.31
200 181.37 187.38
164.18 171.25
154.78
150 137.18
129.38 124.00
111.67
92.49 92.70 78.78
100 68.60 73.69
74.68 75.67 58.26 63.59
59.95 46.78 52.90
46.34 42.48 52.79 55.35 57.91
28.04 32.90 44.40 47.39 50.28
50 19.16 23.32 38.36 40.51
24.49 29.17
16.14 20.32
1.21 1.47 1.58 1.91 1.99 2.10 2.18 2.26 2.33 2.39 2.46
1.37
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
188

580.07
600
539.31
498.54
500 457.50
413.84
400 369.83
323.80 311.32
289.16 290.50
300 269.68
249.39
227.52
211.52 205.53
169.04 181.52
200 159.49 139.67 146.75
131.60 117.64 125.63 132.59
98.97 121.29 98.45 109.29 125.56
70.02 85.57 103.00 92.15 108.72 117.14
67.76 91.15 100.28
100 32.32 42.64 54.86 72.59 82.12 80.86 86.88
50.28 64.38 68.89 74.84
29.56 35.64 42.60 49.73 56.58 62.89
33.61 43.41
16.84 22.06 28.07
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
France Germany China United Kingdom United States
189

Worldwide, social networking, gaming, and shopping apps contribute to the
majority of in-app advertising spending
Share by categories: Global
In-App Advertising market: Market share by category in 2023
(1)
Education
190 Notes: (1) Others referring to Food & Drink, Lifestyle, Productivity, Weather, Business, Health & Fitness, Finance, Sports, Travel, Navigation, Medical

The number of smartphone users has significantly increased over the past few
years and is expected to reach six billion users by 2027
Deep dive: Smartphone users
Number of smartphone users worldwide in millions
6,012 6,162
5,849
+10.3% (1) 5,669
5,471
5,252
5,006
4,727
4,411
4,027
3,547
3,098
2,653
2,214
1,802
1,416
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Users of the mobile internet in 2022 spent the bulk of their time on apps but
especially on chat/messaging, social networks, and search engines
Deep dive: Time spent and usage on mobile (1/2)
Share of time spent worldwide among Android users in 2022 Percentage of users who have visited websites or used apps by types in 2022
Chat and messaging 96%
Social networks 95%
Search engines or web portals 84%
Shopping, auctions, or classifieds 58%
Map, parking, or location-based services 57%
Email 50%
Music 47%
News 42%
8% 92% Weather 42%
Entertainment 41%
Games 35%
Food, recipes, restaurants, or takeaways 33%
Taxi, ride-sharing, bike, or scooter hire 30%
Banking, investing, or insurance 29%
Sports 27%
Education 27%
Health and fitness 25%
Travel 24%
Books 23%
Apps Browsers
Lifestyle and fashion 22%
192
Sources: Data.ai; Hootsuite; GWI.com

Over the past decade, smartphone users have increased their mobile internet
consumption by over 200%
Deep dive: Time spent and usage on mobile (2/2)
Average daily time spent using the internet on mobile devices in hours Share of daily time spent using the internet on mobile between 2014 and 2023
2014 2023
+10.8% (1)
3.37 3.39 3.43 3.46
3.06 3.14
6%
14% 86%
2.31 94%
2.21
2.02
1.38
Rest of the day Using the internet on mobile

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sources: Hootsuite
In 2023, 85% of smartphone users encountered in-stream ads that appear in
between a video but allow the ad to be skipped while using apps
Deep dive: Advertising formats
In-App Advertising market: formats encountered by users in 2023
In-stream ads that appear in between a video but allow

85%
skipping the ad after a few seconds
Banner ads that appear on top or bottom

69%
of the screen
In-stream ads that appear in between a video and run for

52%
fixed duration without allowing to skip the ad
Ads that cover the whole screen, interstitial Ads and do

39%
not close until the interval ends
Content recommendation ads that

24%
appear in between feeds
Native ads that appear as a story feed or news feed and

have a format similar to the app that is being used
20%
Reward video ads that prompt you to either buy

something or watch an ad video to unlock a level or prize 19%
194 Notes: “What type of in-app advertising do you encounter mostly?“; n=660
Sources: GoodFirms
By 2028, global advertising spending on social networking apps is expected to
reach US$175.4 billion
Market Size: Social networking (global)
Social Networking In-App Advertising market: Advertising spending forecast in billion US$
175.4
164.7
+18.9% (1) 153.9
141.9
134.4
126.2
111.9
103.6
75.4
56.1
38.9
26.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Internet users are spending more time on social media, primarily via their
smartphones
Deep dive: Social media - time spent and devices
Average daily time spent worldwide on social media in hours Devices used to access Facebook
+1.8% (1)
2.25 2.25 2.28 2.31

2.22 Use any kind of Only use laptop or Use both Only use mobile
2.08 2.14
mobile phone desktop computer computers and phones (any type)
mobile phones
98.5% 1.5% 16.7% 81.8%
Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022
Spurces: Hootsuite; GWI.com; Meta’s advertising resources

In 2022, social media users showed equal preference for Instagram and
Facebook whereas marketers continued to prioritize Facebook
Deep dive: Social media - favorite platforms
Social media platforms used by marketers worldwide in 2022 Favorite social media platforms among internet users in 2022
90%
75%
61%
52%
43%
18%
14.8% 14.5%
4% 4.3% 3.3% 1.4%
Facebook Instragram LinkedIn YouTube Twitter TikTok Snapchat Instragram Facebook TikTok Twitter Snapchat
197 Notes YouTube and LinkedIn are not available as an answer for the “Favorite” social media platforms question in GWI’s survey
Sources: Social Media Examiner; Frankwatching; Hootsuite; GWI.com

Although it was established seven years after Instagram, TikTok has surpassed
Instagram in terms of download numbers
Deep dive: Social media applications
No. of top social media apps download (lifetime as of May 2023), in million Prediction of online video advertising distribution by platform in 2027
5,663
4,518 4,332
2,486
37% 63%
Facebook TikTok Instagram Snapchat
Application established year
2004 2017 2010 2011

Others TikTok
198
Sources: Appmagic as of May 2023; omdia

At the height of the COVID-19 pandemic, TikTok experienced remarkable growth
in net advertising, surpassing 200%
Platform profiles: TikTok
TikTok overview TikTok’s net advertising revenue worldwide in billion US$
TikTok is a globally popular social media platform that was launched by ByteDance
in 2016. It enables users to create and share short videos and has gained immense
popularity worldwide. Particularly during the height of the COVID-19 pandemic, 23.6
TikTok experienced a significant surge in usage as people sought entertainment
and connection while adhering to stay-at-home measures. TikTok served as a
creative outlet for users to express themselves and showcase their talents, which +133%(1) 18.0
resonated with individuals during a time of limited physical interactions.
Post-lockdown, TikTok has maintained its strength by retaining its user base,
11.6
delving into new markets, and diversifying its content offerings. The platform has
successfully integrated social commerce and strengthened partnerships with +225%(1)
brands, content creators, and influencers. By focusing on these aspects, TikTok has
solidified its position as one of the top social media platforms and aims to 3.9
dominate the social media landscape in the future. With its continuous emphasis
1.4
on user engagement, market expansion, and strategic collaborations, TikTok is 0.3
poised for ongoing success in the evolving world of social media.
2019 2020 2021 2022 2023 2024
Sources: eMarketer
In 2022, Meta's advertising revenue decreased by 1.1% for the first time since its
initial public offering (IPO)
Platform profiles: Facebook
Facebook overview Facebook Daily Active Users in Q4
Launched in 2004, the social media platform Facebook allows users to create
profiles, connect with friends and family, and share posts. Facebook also provides
advertising and business pages for organizations to engage with users. With billions 2020 744 598 308 195 1,845
of active users worldwide, Facebook has become a leading social platform.
In 2022, Meta reported that its advertising revenue declined by 1.1%, a first time
since its initial public offering (IPO) in 2012. A likely cause for this is the user growth
rate in the U.S., Canada, and Europe. Meanwhile, for the first time Facebook’s daily 2021 806 619 309 195 1,929
active users reached 2 billion in 2022.
Meta’s advertising revenue in billion US$

114.9 113.6
84.2
69.7 2022 854 643 304 199 2,000
Asia-Pacific Rest of the World Europe U.S. & Canada

2019 2020 2021 2022
200
Sources: Company information; semrush

The Games In-App Advertising market is expected to reach US$154.3 billion by
2028
Market Size: Games (global)
Games In-App Advertising market: Advertising spending forecast in billion US$
154.3
142.4
130.4
121.3
+19.8% (1)
106.5
91.3
80.0
69.7
48.3
34.3
27.9
21.1
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

People aged 40 and above spend more time on mobile app games than those
under 40, and casual games are the most popular across all age categories
Deep dive: Games – time spent
Average daily time spent worldwide on mobile gaming apps from 2020 to 2021 Average daily time spend on mobile game categories on Android in minutes
in minutes
20.99 20.4
20.44
19.28 Casual (e.g. puzzle, word, card games)
18.07 25.6
17.29
16.56 16.3
Social Casino (no real money involved)
18.0
13.08 12.88
17.4
Hardcore (e,g, strategy, RPG)
16.0
14.0
Midcore (e,g, adventure, action, racing)
17.1
7.1
Hypercasual (short & frequent sessions)
7.6
Men Women
0-19 20-24 25-29 30-34 35-39 40-44 45-49 50+
202

In the past five years, casual games have had the highest number of downloads
Deep dive: Games – highest number of downloads
Top 10 ad-supported mobile gaming apps by downloads in 2017 and 2022
Type of Games 2017 2022
Casual
(e.g., puzzle, word, card games)
Candy Crush My Talking Tom 8 Ball Pool Candy Crush My Talking Tom2 8 Ball Pool Ludo King
Hypercasual
(short & frequent sessions)
Honor of Kings Clash of Clans Clash Royale Free Fire Roblox
Hardcore
(e.g., strategy, RPG)
Subway Surfers Super Mario Run Subway Surfers Stumble Guys
Midcore
(e.g., adventure, action, racing)
slither.io Piano Tiles 2 Race Master 3D Bridge Race
203
Sources: Appmagic
After launching the immensely popular and free download games Candy Crush
and Pet Rescue in 2012, King's revenue rose by 1,046%
Mobile Game Company: King
King overview King’s current mobile game apps portfolio and release timeline
King is a leading mobile game company recognized for developing popular casual
games, such as the puzzle games Candy Crush and Farm Heroes. With an Candy Crush
impressive user base of 250 million monthly active users in Q1 2022, King provides
Pet Rescue Candy Crush Soda Rebel Riders
free-to-play games with the option of in-game purchases. King operates studios in
London, Stockholm, Barcelona, Malmo, and Berlin, and was acquired in 2016 by the Pyramid Solitaire Bubble Witch2 Farm Heroes Super
Activision Blizzard group for US$5.9 billion.
King’s revenue in million US$ 2012 2013 2014 2015 2016 2018 2022
+1,046%
2,785
2,580
2,260 Farm Heroes
1,884 1,999 1,998 2,086 2,031 2,164 Candy Crush Jelly
1,586
Blossom Blast Candy Crush Friends
Bubble Witch3
58 64 164
Diamond Diaries
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
204

The popular battle royale game Free Fire, developed by Garena, reached one
billion downloads in 2022
Mobile Game Company: SEA Limited
Sea Limited overview Sea Limited’s digital entertainment(1) revenue in million US$
SEA Limited is a leading technology company based in Singapore. It operates a 4,320

3,877
range of businesses, including digital entertainment, eCommerce, and digital
financial services. One of its key subsidiaries is Garena Online Private Limited,
2,016
which was established to operate a digital entertainment business.
1,136
Free Fire was released by Garena in 2017. Free Fire has gained tremendous 365 462
popularity, particularly in the mobile gaming space, with millions of players
2017 2018 2019 2020 2021 2022
worldwide. It is a fast-paced, battle royale game involving multiple players and a
variety of game modes.
Free Fire number of application downloads in million
1,030
Garena’s list of mobile games 910
720
459
186
13
2017 2018 2019 2020 2021 2022
205
Sources: Company information; Appmagic

In 2023, spending in the Shopping In-App Advertising market reached US$29.5
billion
Market Size: Shopping (global)
Shopping In-App Advertising market spending forecast in billion US$
51.0
47.0
42.9
+16.8% (1) 38.4
33.8
29.5
24.5
20.4
14.4 15.3
11.5
9.3
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Since 2017, more than 50% of all online shoppers have been conducting their
online purchases via their smartphones
Deep dive: Online purchase users and devices
Number of active paying customers in billion Online purchase by device
5.3
5.1
4.9
4.6
4.4 43% 43% 42% 41% 40% 40% 39% 39% 38%
4.1 47% 44%
3.8
3.5
3.0
2.5
2.1
57% 57% 58% 59% 60% 60% 61% 61% 62%

53% 56%
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Mobile Desktop
207

Amazon's advertising revenue has constituted a larger proportion of its total
revenue over the years, increasing from 4.5% in 2019 to 7.3% in 2022
Company profiles: Amazon
Amazon’s advertising and non-advertising revenue, in billion US$ Traffic share for amazon.com by device in May 2023
514
470 7.3%
Demand Side: 6.6%
Advertiser
386
5.1%
60.2%
281
4.5%
92.7% 39.8%
93.4%
94.9%
95.5%
Mobile Desktop
2019 2020 2021 2022
Advertising Non-advertising
208
Sources: Company information; semrush

In 2021, the combined number of mobile monthly active users on Alibaba
marketplaces in China exceeded 900 million
Company profiles: Alibaba Group
Alibaba Group overview Mobile monthly active users on Alibaba Group’s China Marketplaces in
millions
Alibaba Group is a multinational conglomerate based in China and was founded by
Jack Ma in 1999. It operates in the eCommerce, technology, and entertainment
sectors. Alibaba Group's eCommerce ecosystem in China includes key players such
925
as Taobao, Tmall, and Freshippo. Alibaba’s China marketplaces successfully capture
846
Chinese users with over 900 million mobile monthly active users.
721
Alibaba Group’s China Marketplaces
617
507
410
(Taobao Deals) (Idle Fish)

(Taocaicai)
2016 2017 2018 2019 2020 2021
209

AI is applied across a wide range of fields in mobile advertising to increase reach,
boost engagement, and detect fraud
Deep dive: Current use of AI in Mobile Advertising
Popular applications of AI in mobile advertising
In-depth reporting in real time: Detect fraud advertising: Improve SEO(1) and ad bidding: Advanced customer targeting:
AI technologies make it possible to AI uses advanced algorithms to pinpoint AI improves the efficiency of mobile ad AI utilizes advanced algorithms to
conduct real-time analyses of data from irregular behaviors and suspicious bidding and SEO(1) performance. With AI analyze big data and determine user
previous campaigns, customer profiles, patterns in real time. By using AI to algorithms, marketers can adjust and preferences, behaviors, and interests.
and behavior. This makes it easier and distinguish between typical and unusual optimize their ad investment strategies By identifying patterns and trends, AI
faster for advertisers to make decisions interactions, mobile ads are able to based on real-time data analysis. algorithms make it possible for
based on data and improve their ads. AI detect and reduce fraud, which in turn marketers to identify and reach their
AI can also boost SEO by analyzing a
can also be used for predictive analytics, contributes to improvements in ad target audiences. Using AI helps to
website's data, keywords, and content,
which uses past trends and results to investments, campaign performance, deliver personalized content, optimize
and suggest improvements that lead to
anticipate what will happen in the and user engagement. ad placements, and enhance ad
higher search engine rankings.
future. With this technology, advertisers engagement.
can quickly adjust their strategies based
on current events.
210 Notes: (1) Search Engine Optimization

AI-powered tools help marketers to generate effective content against the rising
tide of data privacy regulations
Deep dive: Potential trends in AI-enhanced mobile advertising
Evolution of AI in mobile advertising
Real-time content generation: Real-time generation of visual ads: Facial and emotional recognition: Data privacy & consumer targeting:
In the future, real-time in-app AI is believed to be able to produce not Facial and emotional recognition Despite the increase of data privacy
advertising content generation will only text-based in-app advertising but technology will help to analyze facial regulations, marketers will still be able
significantly be influenced by AI. AI has also visual content such as images and expressions, emotions, and to reach targeted audiences with the
the ability to produce personalized ads videos. A massive amount of data, demographics. This will make it possible help of AI-powered technologies and
that connect with the target audience by including pictures and videos, can be for apps to show more personalization machine learning. AI can use contextual
analyzing user behavior, preferences, analyzed by algorithms to learn about and relevant ads. Real-time and non-personalized data to balance
and engagement data, together with visual trends, tastes, and user behavior. personalization based on emotional the conflicting needs of personalized
A/B tests of different versions of content Through this analysis, AI can generate states can make ads more interesting, advertising and data privacy, which will
to determine which one is more visually appealing and relevant ad and tracking emotional responses can help build trust in the ever-changing
effective. content that incorporates videos and help advertisers understand how well world of privacy laws.
images to match the tastes and their ads are performing.
preferences of the target audience.
211
CHAPTER 3
Appendix
Market Insights – market data,

forecasts, and qualitative insights
Gain a better understanding of markets across 190+ geographical entities – on a global,
regional, country, and/or state level. Access our data via web interface, download (XLS, PDF,
PPT), or reports. Benefit from our 48-hour customer service guarantee.
• 10 sectors: advertising & media, consumers, countries, digital sector,

finance, health, industrial sector, mobility, and technology
• 1,000+ markets, e.g., FinTech, Food, or Robotics
• KPIs, e.g., revenue, market shares, prices, and volume
• Features: Compare countries & regions, change currencies, select
visualizations, and/or customize downloads
• Use cases: sales planning, investment decision support, resource
allocation, and portfolio management
10 190+ 1,000+ 400+

Find out more on: sectors geographical markets reports
Go to Market Insights https://www.statista.com/outlook/
entities
213
Author
Sebastian Lindlahr
Team Lead Advertising & Media Insights • SMI Market Insights
s.lindlahr@statista.com
Sebastian Lindlahr graduated in Hamburg with a focus on international business

management. He gained a comprehensive understanding of market structures
working as a market strategist and business developer. At Statista, he is the team
lead for Advertising and Media Insights.
214 www.statista.com

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INDUSTRIES & MARKETS

This report is part of

• 10 sectors: advertising & media, consumers, countries, digital sector,

10 190+ 1,000+ 400+

Market Insights – market data,

10 190+ 1,000+ 400+

6 Notes: (1) CAGR: Compound Annual Growth Rate

Sources: Statista Market Insights 2023

Digital Advertising uses the internet to deliver marketing messages to internet

Sources: Statista Market Insights 2023

Sources: Statista Market Insights 2023

Digital Advertising market: Advertising spending forecast in billion US$

9 Notes: (1) CAGR: Compound Annual Growth Rate

Sources: Statista Market Insights 2023

Digital Advertising market: Advertising spending forecast in billion US$

4.00 5.80 14.20 17.90

10 Notes: (1) CAGR: Compound Annual Growth Rate

Sources: Statista Market Insights 2023

Digital Advertising market: Advertising spending forecast in billion US$

China United States United Kingdom Germany France

11 Notes: (1) CAGR: Compound Annual Growth Rate

Sources: Statista Market Insights 2023

Sources: Statista Market Insights 2023

Sources: Statista Market Insights 2023

France China Germany United Kingdom United States

Sources: Statista Market Insights 2023

Digital Advertising market: Mobile and desktop distribution

33% 32% 31% 30%

67% 68% 69% 70%

Sources: Statista Market Insights 2023

Digital Advertising market: Mobile and desktop distribution

28% 30% 25%

72% 70% 75%

Sources: Statista Market Insights 2023

Digital Advertising market: Mobile and desktop distribution

Sources: Statista Market Insights 2023

Digital Advertising market: Programmatic ad revenue distribution

Sources: Statista Market Insights 2023

Digital Advertising market: Programmatic ad revenue distribution

19% 18% 19% 18% 21% 22% 17% 18%

81% 82% 81% 82% 79% 78% 83% 82%

Sources: Statista Market Insights 2023

Digital Advertising market: Programmatic ad revenue distribution

18% 18% 17% 15% 18% 17% 17%

82% 82% 83% 85% 82% 83% 83%

Sources: Statista Market Insights 2023

Sources: Statista Market Insights 2023

Social Media 62% Digital Video

Sources: Statista Market Insights 2023; Company information

Worldwide Digital Advertising market shares

Sources: Statista Market Insights 2023: Company information

1 15.4 109,382 Public Advertising

Sources: Statista Market Insights 2023

25 Notes: (1) Apple released iOS 14.5 on Monday, 26 April 2021

Examples of platform types in different industries with private garden potential

Platform type Platform advantages Potential competitors

Technology Selected data on user activity across various tech platforms

Telco Scaled data on user location and data consumption

AT&T Comcast Verizon T-Mobile

Marketplaces Scaled user data with location and consumption behavior

What is native advertising?

Native advertising means the seamless matching of advertisements to the form

Sources: Statista Market Insights 2023

What is programmatic advertising?