Market Overview
The global cloud advertising market size was valued at USD 3.91 billion in 2023. It is estimated to reach USD 17.67 billion by 2032, growing at a CAGR of 18.25% during the forecast period (2024–2032). In the past few years, a rapid shift towards digitization has led to exponential growth in internet and smartphone users worldwide. This shift has led to a growth of online shopping channels, which is ultimately estimated to drive the cloud advertising market, as it is used to run advertisement campaigns online. Moreover, the integration of cloud advertising solutions with AI and ML to enhance its capabilities and efficiencies is estimated to create opportunities for the growth of this market.
Cloud advertising refers to the use of cloud computing technology to deliver, manage, and optimize advertising campaigns over the Internet. It leverages cloud infrastructure's scalability, flexibility, and cost-effectiveness to handle large volumes of data and sophisticated algorithms for targeting, personalization, and optimization. Cloud-based advertising platforms enable advertisers to reach their target audience across various digital channels, including websites, mobile apps, social media platforms, and streaming services. By utilizing cloud resources, advertisers can access real-time analytics, streamline campaign management processes, and adjust their strategies based on performance insights. Ultimately, cloud advertising empowers advertisers to create more efficient, targeted, and impactful advertising campaigns in the ever-evolving digital landscape.
Highlights
- Hybrid dominates the deployment segment
- Large size enterprises dominate the enterprise-size segment
- Campaign management dominates the application segment
- North America is the highest shareholder in the global market
Market Dynamics
Global Cloud Advertising Market Drivers:
Rapid Digitalization
Rapid digitalization is a fundamental factor fostering the cloud advertising market's expansion. Based on data from Statista, the global number of internet users stood at 5.35 billion in January 2024, accounting for 66.2% of the world population. Likewise, 5.04 billion people, or 62.3% of the global population, use social media. As smartphones and other connected devices have become increasingly prevalent and internet users worldwide have increased exponentially, digital platforms have emerged as the fundamental infrastructure for modern commerce and communication.
Moreover, the exponential growth of social media, streaming platforms, and e-commerce channels has given advertisers extensive prospects to connect with and attract their target consumers efficiently. Also, the COVID-19 pandemic has expedited the transition towards digital channels, given that consumers are progressively placing greater reliance on online platforms to access entertainment, information, and retail. The digital revolution has required a fundamental change in advertising, which now emphasizes personalized and data-driven strategies. As a result, there is an increasing demand for cloud advertising solutions that can successfully navigate and exploit this ever-changing digital environment.
Global Cloud Advertising Market Restraint:
Data Privacy Concerns
Data privacy concerns are a significant restraint in the cloud advertising market due to heightened sensitivities surrounding the collection and use of consumer data. Stricter regulations, such as GDPR and CCPA, demand transparency and accountability in data handling practices, raising compliance costs for advertisers. Moreover, frequent data breaches and misuse reports erode consumer trust, leading to reluctance to share personal information for targeted advertising. Advertisers face the challenge of balancing personalized ad delivery with respecting user privacy rights, potentially limiting the scope of data-driven advertising strategies. As a result, navigating the evolving landscape of data privacy regulations while maintaining effective advertising practices becomes a critical hurdle for the growth of cloud advertising.
Global Cloud Advertising Market Opportunities:
Integration with AI and Machine Learning
Artificial intelligence (AI) and machine learning (ML) technologies are increasingly integrated into Cloud Advertising solutions. These technologies enable advertisers to automate tasks, optimize ad placements, and improve targeting accuracy. AI-powered algorithms can analyze vast datasets to identify patterns and trends, helping advertisers optimize their campaigns for better performance and ROI. Therefore, the market players are integrating cloud advertising solutions with AI and ML.
For instance, in February 2024, Telkomsel announced a strategic partnership with Google Cloud at the Mobile World Congress 2024 (MWC). This collaboration aims to include enterprise-level generative AI (gen AI) into Telkomsel's operations and primary product offerings, catering to consumers and businesses. Telkomsel's adoption of Google's AI-powered advertising solutions, such as Performance Max, is intended to enhance staff and customer interactions, increase satisfaction, and position the organization for future business expansion. This is estimated to create opportunities for market expansion.
Regional Analysis
North America Dominates the Global Market
Based on region, the global cloud advertising market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global cloud advertising market shareholder and is expected to expand substantially during the forecast period. The cloud advertising market in North America is thriving as it is a technologically advanced and digitized region. Similarly, mobile device dominance fuels mobile advertising growth, supported by cloud-based solutions. For instance, according to Statista, The United States boasts one of the largest smartphone markets globally, with a whopping 310 million smartphone users as of 2023. The smartphone market has shown consistent expansion globally, and this trend is reflected in the United States, where the smartphone penetration rate has steadily increased in recent years, reaching approximately 92 percent by 2023.
Moreover, to gain a competitive advantage over competitors, the key regional players are introducing the most recent updates to their cloud database solutions. For instance, in July 2021, Salesforce Industries launched an advertising sales management solution for its Media Cloud platform, enabling media firms to effectively monitor the efficacy of their campaigns across various digital and offline publication channels. This feature integrates Salesforce's CRM with tailored tools that empower media companies to efficiently handle ad placements and monitor the sales and performance of advertisements across both physical and digital media platforms. The feature bundle enables the analysis and optimization of ad budget allocation, allowing ad buyers to redistribute ad purchases to the most effective channels during an advertising campaign. These factors contribute to the robust growth and evolution of cloud advertising in North America.
Asia-Pacific region is estimated to grow at the fastest pace owing to faster adoption of digitization in this region. Furthermore, several organizations in this region are integrating cloud advertising solutions into their platform, owing to its advantages. For instance, in July 2020, a storytelling ad platform for small screens, mCanvas, announced that it is now integrated with Adobe's demand-side platform – Adobe Advertising Cloud, the end-to-end, independent platform for managing advertising from planning, buying, and measurement to optimization.
Moreover, in 2018, mCanvas launched the first ad platform in India to run non-standard IAB ads programmatically on the mobile web. With that, mCanvas brought its engaging and immersive sensory-rich ads to the programmatic world. Today, it offers a premium and exclusive inventory of 120 top content publishers via leading DSPs. Adobe Advertising Cloud will enable advertisers to access mCanvas' custom ad formats integrating phone features and sensors for better storytelling. This is expected to boost the regional market expansion.
Segmental Analysis
The global cloud advertising market is segmented by component, channel, deployment, enterprise size, application, and industry vertical.
Based on components, the global cloud advertising market is divided into platforms and services.
A cloud advertising platform is a digital advertising solution that leverages cloud computing technology to facilitate creating, managing, and optimizing online advertising campaigns. These platforms often provide tools for campaign planning, ad creation, audience segmentation, real-time analytics, and performance tracking. By centralizing data and operations in the cloud, advertisers can streamline their advertising efforts, improve targeting precision, optimize campaign performance, and ultimately enhance their return on investment (ROI) in digital advertising.
Based on channel, the global cloud advertising market is bifurcated into email marketing, in-app, company website, social media marketing, and others.
Email marketing is a digital strategy that sends commercial messages to a targeted audience via email. It builds relationships, promotes products or services, and drives engagement or sales. Cloud advertising enhances email marketing by offering scalable infrastructure and advanced analytics. It enables marketers to segment their audience effectively, personalize messages, and automate campaigns for better engagement. Moreover, cloud-based email marketing solutions offer enhanced security measures, ensuring data privacy and compliance with regulations like GDPR.
Based on deployment, the global cloud advertising market is bifurcated into public, private, and hybrid.
The hybrid deployment is estimated to own the highest market share. Hybrid deployment for cloud advertisement involves integrating both on-premises and cloud-based infrastructure to optimize advertising campaigns. This approach allows advertisers to leverage the scalability and flexibility of the cloud while retaining control over sensitive data and legacy systems on-premises. By utilizing hybrid deployment, advertisers can efficiently manage resources, dynamically scale infrastructure based on demand, and enhance data security and compliance.
This setup enables seamless integration of various advertising tools, analytics platforms, and customer data across both environments, facilitating better insights and targeted advertising strategies. Thus, hybrid deployment empowers advertisers to maximize efficiency, agility, and performance in their advertising endeavors while mitigating risks associated with full cloud migration.
Based on enterprise size, the global cloud advertising market is segmented into small and medium-sized enterprises (SMEs) and large size enterprises.
The large-size enterprise segment accounted for the largest market share. Large enterprises leverage cloud advertising to streamline marketing efforts, utilizing platforms like Google Ads, Facebook Ads, and Amazon Advertising. This approach offers scalability, flexibility, and real-time analytics, enabling targeted campaigns to reach specific audiences. Cloud-based advertising also facilitates collaborative work among global teams, enhances ad performance through data-driven insights, and optimizes budgets effectively. By harnessing the power of the cloud, large enterprises can enhance brand visibility, engage with customers more effectively, and ultimately drive revenue growth in a dynamic digital landscape.
Based on application, the cloud advertising market is bifurcated into campaign management, experience management, analytics and insights, customer management, and real-time engagement.
The campaign management segment held the largest market share. Cloud advertising revolutionizes campaign management by leveraging remote servers for storage, processing, and analysis. It offers unparalleled scalability, allowing advertisers to adjust resources flexibly based on campaign demands. Through cloud solutions, advertisers can efficiently manage campaigns across various channels, access real-time performance metrics, and optimize strategies dynamically. Moreover, collaborative tools streamline communication and coordination among team members, enhancing efficiency. Cloud advertising enhances campaign flexibility, responsiveness, and cost-effectiveness, marking a paradigm shift in modern marketing strategies.
Based on industry verticals, the global cloud advertising market is bifurcated into IT and telecommunications, BFSI, healthcare, manufacturing, automotive, travel and hospitality, retail and consumer goods, media and entertainment, and others.
The BFSI segment accounted for the largest market share. The BFSI industry increasingly leverages cloud advertising to reach and engage its target audience. Cloud advertising allows BFSI companies to deploy targeted campaigns across various platforms, such as search engines, social media, and websites, effectively reaching potential customers with personalized messages based on their demographics, behaviors, and interests. This approach enhances customer acquisition, fosters brand awareness, and drives conversions by optimizing ad spend and ensuring relevant content delivery. Moreover, cloud advertising offers scalability, flexibility, and real-time performance tracking, enabling BFSI firms to adapt quickly to market changes and refine their marketing strategies for better ROI.
