Cloud advertising market size estimates: $6.7 billion by 2026

cloud advertising market

The cloud advertising market size is expected to grow at a compound annual growth rate (CAGR) of 19.6% during the forecast period, to reach USD 6.7 billion by 2026, from 2. 7 billion USD in 2021.

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Cloud-based advertising services that assist with various stages of an advertisement, from selecting an advertisement to determining the price when the advertisement is about to reach the end user, can be referred to as cloud advertising. Cloud Advertising facilitates cloud-based advertising for different regions during different stages of online advertising. It provides different tools and services relating to different segments, such as business-to-business and business-to-consumer. The cloud advertising market offers integrated solutions and services for digital advertising. Growing awareness and adoption of the cloud and the rapid increase in the number of internet users are fueling the demand for cloud advertising.

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The cloud advertising market is booming and cloud advertising solutions are being adopted by various end users for many applications. These solutions are seeing massive adoption trends among large enterprises and SMBs. The cloud advertising market has been segmented, based on organization size, into large enterprises and SMBs. The organization size section has been segmented based on the total number of employees in an organization. Large enterprises and SMBs are adopting cloud-based data warehouse solutions across the globe, owing to the growth of big data across industries.

The cloud advertising market is highly competitive due to the presence of numerous market players, including a majority of leading and mid-tier companies. The growing need to manage the customer journey and autonomously optimize marketing campaigns has played a major role in the adoption of advertising and cloud services in verticals, such as retail and e-commerce, IT and telecommunications, travel and hospitality, education and BFSI. Additionally, the growing adoption of cloud advertising by SMBs has led to a growth in demand for content management, customer data management, and analytics. The cloud advertising market has been segmented into platforms and services. The services segment has been sub-segmented into professional services and managed services. The professional services segment has been subdivided into consulting, systems integration and deployment, and support and maintenance.

In recent years, cloud advertising has found a potential place in various industrial applications, such as dynamic ad insertion, targeted marketing, and accelerating decision time from data to decision. Cloud advertising has various applications such as campaign management, customer management, real-time engagement, analytics and insights, and experience management. Applications for cloud advertising solutions are expected to grow as companies plan to leverage data, gain competitive advantage, and improve operational excellence. The campaign management application is expected to hold the largest market share in 2021, while the real-time engagement market is expected to grow at the highest rate during the forecast period.

The market is expected to be driven by the growing adoption of cloud services

With the onset of the COVID-19 pandemic, lockdowns were imposed in different parts of the world and people were forced to stay at home. This led to an increase in demand for cloud services as people worked from home. This scenario also acted as a catalyst for the growth of cloud advertising as the industry faced new changes in terms of digital advertising. Digital advertising has grown in popularity in recent years, with the demand for digital media constantly increasing. This increase in digital media consumption has created new opportunities for end users to generate more revenue through cloud advertising. This advancement in the digital advertising space creates new opportunities for cloud advertising.

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Better return on investment (RoI) and cost optimization

Cloud advertising providers offer products and services that can help SMBs and large enterprises target the most appropriate audience based on their tastes and preferences. By targeting the most appropriate audience, end users can improve their return on investment compared to traditional advertising and can optimize their costs within the same budget. Targeting the exact audience searching for their products and services can also help SMBs increase their revenue as there would be better chances of conversion. Cloud advertising products and services are gaining popularity among SMBs as they help generate more revenue with better ROI. This is further expected to boost the demand for cloud advertising.

North America will dominate the global cloud advertising market in 2021

North America is expected to hold the largest market size as cloud marketing technology has already penetrated the region. It constitutes developed economies: the United States and Canada. Early adoption of digital marketing, presence of prominent players, and globalization of cloud services in North America are expected to drive the cloud advertising market. Businesses in the region are investing heavily in digital marketing initiatives and improving customer experience. In North America, the percentage of social media users, smartphone users and ad spend is exceptionally high compared to other regions. Mobile device penetration in the United States is over 90%, followed by Canada. It provides marketers with a strong channel to target potential customers. Verticals, including consumer goods and retail, and media and entertainment, should invest in cloud marketing technology. Growing demand for personalized content and experience would further drive adoption in North America.

Growing adoption of big data related technologies and adoption of private cloud is believed to have historically driven the overall growth of the cloud advertising market in this region. Factors such as emergence of AI and ML technology, rapid adoption of cloud-based solutions and increasing number of business applications are further fueling the growth of cloud advertising market in America North. The United States and Canada are the major countries contributing to the growth of the cloud advertising market in North America. The United States has seen rapid adoption of scanning technologies and high levels of consumer usage compared to other developed regions.

Key players

The cloud advertising market is dominated by companies such as Adobe (US), Oracle (US), Salesforce (US), Google (US), IBM (US) , SAP (Germany), Acquia (US), Demandbase (US), Experian (US), Kubient (US), FICO (US), HubSpot (US), Imagine Communications (US), InMobi (India), Marin Software (US), Sitecore (US), MediaMath (US), Nielsen (US), PEGA (US) and Sailthru (US) -United). These vendors have a large customer base and strong geographic footprint along with organized distribution channels, which helps them increase their revenue.


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Marilyn J. Hernandez