Smart Advertising Market
Smart Advertising Market: Information by Component (Hardware, Software, and Services) And End-Users (Corporate, Government, Education, Food And Beverage, Others)-Forecast till 2026
Market Overview
Smart Advertising Market Size Will significantly Grow At CAGR of 19.4% By Forecast Period
Smart advertising, also known as smart ads, smart commercials, or digital commercials, is a new way of advertising with the use of the latest digital technologies. Today, every company requires promotion and advertisement of its product lines. With the help of smart advertising, companies can target audiences based on multiple attributes, such as location, age, interests, and other factors, thereby enhancing the level of engagement with their customers. Smart advertising is projected to gain popularity in a short span of time and positively impact industry verticals such as consumer goods and electronics, gaming, automotive, and entertainment, among others.
Market Snapshot
Market Dynamics
Product Life Cycle
Smart advertising is in its growth stage, and new methods and technologies are expected to be launched in the coming years. For instance, in July 2019, CIVIQ Smartscapes announced that it will provide smart kiosks for the Massachusetts Convention Center Authority's (MCCA) Boston Convention and Exhibition Center (BCEC) in South Boston. It aims at bringing smart technologies to new markets, including stadiums, convention centers, and other public spaces. With increasing expansion activities and the growing popularity of digital advertising technology across masses, the smart advertising market is expected to grow at an exponential rate in the coming years. Currently, the market is in the growth stage and is expected to mature after 5-10 years due to the launch of new alternative advertisement techniques. A large number of market players are projected to enter the market by 2025, thus increasing the competition level. However, at present, the players are competing based on high technological costs involved in the development of the product.
Figure: Product Life Cycle of Smart Advertising — Growth Stage
DROs
The smart advertising market is expected to grow at a significant pace over the forecast period on account of the following:
- Increased adoption of hyper-targeted advertising model (for delivering personalized content to targeted consumer segments)
- Standardization of digital display networks
- Shift towards programmatic media buying and Real-Time Bidding (RTB) model
The above-mentioned factors are expected to propel the development of ad networks, ad exchanges, Demand-Side Platform (DSP), and Supply-Side Platform (SSP), to enhance efficiency and enable greater automation in the smart advertising market.
However, stringent government regulations regarding data privacy and protection might hamper the growth of the smart advertising market in the coming years. For instance, the General Data Protection Regulation (GDPR) in Europe is expected to impact storage, collection, and usage of customer data for delivering personalized advertisement content.
Segmental Analysis
Trend — Digital Mall Advertising (Exterion Media (UK) Limited)
- Has 20 screens across 5 regional malls
- Deals with more than 400,000 shoppers each week
- Advertising in digital malls can be handpicked for a customized approach or can also be accessed by network pack
- A Platform to Engage – offers a 70-inch digital screen
- Offers Flexibility – with the use of multi-file creatives to broadcast different creative treatments by time, location, day, and loop change.
By End-Users Analysis
The end-users of smart advertising are the following:
- Corporate
- Government
- Education
- Food and Beverage
- Others
In 2018, smart advertising was mainly used by corporate officials and is expected to emerge as the fastest-growing segment in the coming years. The increasing number of creative and innovative advertising campaigns is a key driving factor for the smart advertising market. The global presence of a few large scale enterprises is also projected to impact the revenue generated by the smart advertising market. The corporate segment is followed by education, government, food and beverage, and others.
Figure: End-Users of Smart Advertising
Regional Analysis
In 2018, North America dominated the smart advertising market and is projected to lead the share in the coming years as well. Forces driving market growth in North America are the following:
- Presence of several leading DOOH media companies
- High advertising expenditure by companies
- Availability of high-speed wireless internet infrastructure
Adding to the above-mentioned factors, the early adoption of emerging technologies for customer engagement and business growth is also driving the smart advertising market in North America.
Asia-Pacific is expected to grow at the highest CAGR during the forecast period, 2019-2026, on account of the following:
- Initiatives are taken by multinational companies for establishing a strong presence in high-potential and emerging economies, such as India and China
- Rising investment on the rollout of high-speed internet infrastructure
- Growing smart city initiatives
- Presence of major electronic component manufacturers
Asia-Pacific is followed by LAMEA, Europe, and North America.
Top Key Players of Smart Advertising Market
Key players operating in the market include
- Changing Environments Inc
- Lamar Advertising Company
- Exterion Media (UK) Limited
- JCDecaux Group
- Intersection
- OUTFRONT Media Inc
- CIVIQ Smartscapes
- Clear Channel Outdoor Holdings, Inc
- IKE Smart City
- Captivate
Market players are focusing on the development of innovative solutions so as to improve the adoption of smart advertising and DOOH by corporates worldwide. For instance, in 2018, JCDecaux Group launched ‘Viewed Impressions for Out Of Home’ (VIOOH), which allows clients to personalize advertising content for specific locations based on time, day, geolocation, promotions, and events using CMS (i.e., Content Management System). VIOOH is basically a global platform, with the help of which programmatic trading of DOOH advertising can be done.
The other focus areas of market players are:
- Analyze smart advertising campaigns and check effectiveness through research and development
- Enhance digital display network so as to offer smart advertising services
Companies are following organic and inorganic strategies for maintaining their competitiveness in the market. For instance, JCDecaux acquired APN Outdoor, an OOH media company in Australia, for expanding its operations in the Australian market. Similarly, Clear Channel Outdoor Holdings Inc., a specialized outdoor advertising company, aims at making digital advertisements popular at airports and on the streets. It has around 14,000 digital displays in 30 countries. Similarly, Exterion Media (U.K.) Limited has a strong presence in European countries, including the Netherlands, Spain, the U.K., France, and Ireland.
Report Scope
| Report Metric | Details |
|---|---|
| CAGR | 19.4% |
| Forecast Period | 2023-2031 |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends |
| Segments Covered |
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| Geographies Covered |
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Recent Developments
- OUTFRONT Media displays first-ever out-of-home campaign on June 7, 2019, with ‘poo~pourri’ out-of-home advertising campaign
- On December 21, 2018, Lamar Advertising Company acquired Fairway Outdoor Advertising’s billboard operations for the price of USD 418.5 million in five U.S. markets from GTCR, LLC
- On August 4, 2017, Lamar Advertising acquired the assets of Steen Outdoor Advertising, for expanding the market position in Philadelphia and the nearby areas
- Exterion Media announced a partnership with Pulse Smart Hub and Euro Payphone on June 28, 2019, for expanding digital advertising screens network across Belfast City
- Innovid Acquired Herolens on September 18, 2019, for providing a better experience to the customers by providing ad-tech mergers
Smart Advertising Market Segmentation
By Component
- Hardware
- Software
- Services
By Product
- Interactive Kiosk
- Digital Billboard
- Digital Poster
- Others
By End-Users
- Corporate
- Government
- Education
- Food and Beverage
- Others
USD 995
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Report Benefits
- Develop business strategies by understanding the trends shaping and driving the Market.
- Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
- Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
- Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
- Track sales in the global and country-specific Market.
- Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
