Cloud advertising set to cross $395 billion by 2026

On Mar 4, 2021

Over the past several years, social media platforms have become some of the best distribution platforms for ROI in advertising revenues, because of its growing use of videos. Consumers not only like the video but demand them! Technological advancements concerning the internet, combined with its increasing commercial application and the rapid growth in the number of internet users worldwide, have not only shaped the evolution of cloud advertising through different forms of digital advertising but have also enhanced the advertising business models, along with the market levels and players.

Cloud advertising expected to cross $395 billion by 2026

Some of the e-commerce giants, such as Amazon, and all the major social media platforms, have integrated the cloud service and marketing into their business models, thereby utilizing the tools of the internet to connect with customers. It helps in creating a consistent buyer experience, serving customers at each step of their journey, and tracking every customer touch point required for highly sophisticated real-time communication and coordination of marketers, content, data, processes, and reporting. A report from Mordor Intelligence projected that the cloud advertising market , which was valued at USD 166.99 billion in 2020 is expected to reach a value of USD 397.02 billion by 2026 at a CAGR of 15.7 %, over the forecast period (2021 – 2026). Active companies in the markets this week include Kubient (NASDAQ: KBNT), Magnite (NASDAQ: MGNI), The Trade Desk (NASDAQ: TTD), PubMatic, Inc. (NASDAQ: PUBM), Viant Technology Inc. (NASDAQ: DSP).

Mordor Intelligence said that video ads, which have become extremely popular on various social media platforms… provided the best ROI. Hence, the effective spread of video through social media platforms is also driving the market growth… Currently, users widely prefer mobile devices over laptops or desktop, owing to convenience, portability, and operations that can be performed across the cloud platform, owing to which mobile platforms are expected to grow lucratively.

North America is dominating the global cloud advertising market owing to the high rate of cloud adoption among regional end users. Most of the significant market vendors are also US-based… Nearly one-fifth of the North American brands expect to increase their marketing and advertising budgets by 25% or more in the coming year, which is further estimated to increase the demand for cloud advertising solutions and services in the region. In the United States, mobile marketing is expected to be an engine for the digital marketing and advertising industry, (historically) accounting for more than 70% of all digital ad spend… Therefore, the increasing investments in mobile advertising companies in the region are also enhancing the studied market growth.”