Advertising Industry: Search
Search advertising is a method of placing online advertisements on web pages that show results from search engine queries. Through the same search-engine advertising services, ads can also be placed on Web pages with other published content.
Search advertisements are targeted to match key search terms (called keywords) entered on search engines. This targeting ability has contributed to the attractiveness of search advertising for advertisers. Consumers will often use a search engine to identify and compare purchasing options immediately before making a purchasing decision. The opportunity to present consumers with advertisements tailored to their immediate buying interests encourages consumers to click on search ads instead of unpaid search results, which are often less relevant. [1]
Long term growth factors [2]
- Advances in technology such as big data analytics, Maching Learnings and AI will boost the growth of search advertising by enabling the targeting of specific customers and personalized ad content.
- Search engine advertising has a higher conversion rate of advertisement as compared to other advertising channels, making it an attractive option for businesses seeking more efficient campaigns.
- Increasing internet penetration rate will increase the potential audience for search advertising campaigns
- The growing popularity of smartphones and consumer preference for on-demand content will be driving the market growth, as well as the availability of more affordable mobile data plans and 4G networks
- The trend of consumers shifting towards online shopping and digital research is making search advertising more effective in reaching potential customers
Growth Forecast
The projected market volume for ad spending is expected to reach US$435.20bn by 2027, with an annual growth rate of 10.05% (CAGR 2023-2027)[3]
| Year | Total in US Billion | Growth Rate[3] |
| 2018 | 134.1 | 26.2 |
| 2019 | 150.9 | 12.5 |
| 2020 | 164.5 | 9 |
| 2021 | 225.3 | 37 |
| 2022 | 260 | 15.4 |
| 2023 | 296.7 | 14.1 |
| 2024 | 331.9 | 11.9 |
| 2025 | 366.5 | 10.4 |
| 2026 | 400.9 | 9.4 |
| 2027 | 435.2 | 8.6 |
Spending by country
The United States is expected to generate the most ad spending globally, 45% of the total spending amount in 2023.
| in billion USD (US$) | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027[3] |
| United States | 41.42 | 52.68 | 61.92 | 71.15 | 97.17 | 116.5 | 133.5 | 151.1 | 168.8 | 186.5 | 204.1 |
| China | 22.35 | 29.86 | 32.68 | 33.65 | 47.39 | 52.97 | 60.21 | 66.32 | 72.25 | 78.11 | 84 |
| United Kingdom | 7.97 | 9.21 | 9.63 | 10.45 | 14.41 | 16.26 | 18.64 | 20.96 | 23.17 | 25.43 | 27.74 |
| Japan | 4.45 | 5.39 | 6.44 | 6.75 | 8.35 | 9.11 | 10.4 | 11.58 | 12.93 | 14.26 | 15.52 |
| Germany | 3.61 | 4.46 | 4.63 | 4.93 | 6.62 | 7.3 | 8.31 | 9.32 | 10.34 | 11.33 | 12.31 |
| Canada | 2.44 | 3.08 | 3.53 | 3.97 | 5.84 | 6.73 | 7.68 | 8.45 | 8.99 | 9.38 | 9.77 |
| France | 2.19 | 2.93 | 3.35 | 3.61 | 4.98 | 5.99 | 6.78 | 7.5 | 8.09 | 8.79 | 9.48 |
| Australia | 2.4 | 2.86 | 3.08 | 3.4 | 4.58 | 5.06 | 5.57 | 5.93 | 6.15 | 6.45 | 6.74 |
| South Korea | 1.66 | 2.31 | 2.49 | 2.62 | 3.43 | 3.92 | 4.52 | 5.03 | 5.44 | 5.74 | 6.04 |
| Brazil | 1.72 | 1.83 | 2.02 | 1.66 | 2.27 | 3 | 3.41 | 3.75 | 4.02 | 4.3 | 4.62 |
| Company | 2022 Share[3] |
|---|---|
| Amazon | 14 |
| Baidu | 15 |
| Bing | 6 |
| DuckDuckGo | 1 |
| 58 | |
| Haosou 360 | 1 |
| Other | 1 |
| Sogou | 1 |
| Yahoo | 2 |
| Yandex | 1 |