Global Advertising Market is Expected to Witness Steady Growth till 2025 | Hexa Research

Advertising Market is driven by a surge in marketing channels such as TV, radio, billboards, Internet, newspapers, mobile phones, and social networking sites. Asia Pacific has been a rather lucrative market.

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The global Advertising Market has been on a consistent rise over the recent past, driven by a surge in marketing channels such as TV, radio, billboards, Internet, newspapers, mobile phones, and social networking sites. The primary use of advertising is to make customers aware of the presence of a specific product or service in the market.

Advertising can be on a domestic as well as global scale. A number of leading companies have been promoting their products and services on an international level, the benefits of which can be reaped on a domestic scale. Tourism is the perfect example of this technique. For instance, the Malaysia tourism ministry advertises in the Indian market to attract tourists and visitors.

Every industry benefits from promoting and marketing their offerings, be it telecom, automotive, manufacturing, agriculture, insurance, retail, tourism and hospitality, or real estate. These activities can help them launch new products and service; they can also help bring in new customers and retain existing ones. It also helps create a specific image of the company and its brand.

Advertising costs money and companies as well as countries are willing to spend in order to make the most of the several advantages it offers. The top spenders in the global industry are U.S., China, Japan, Germany, and U.K. Companies are also big spenders when it comes to marketing and promotions, not just to create a positive image but to expand their customer base.

Television is perhaps the most efficient and impactful medium of advertising, even though it is reportedly one of the most expensive channels. Radio is also prominent medium of promoting one’s products and services. Online advertising is the most recent forms of marketing, which is soon becoming one of the most popular channels as well. Social media marketing is an excellent example of online advertising.

Spending on digital adverts is anticipated to rise at a strong pace over the coming years, further boosting the global market. Industry-wise, banking and financial services are the most prominent end users of this form of marketing, with e-commerce, telecommunications, and travel following suit. Rising expenditure on social media, in addition to adverts on mobile phones via SMSs and in-app ads, has also given this medium a significant boost. Ads on mobile are considered to be creative, to the point, and clear. They are also known to garner better monetization.

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Mobile advertisements have significantly contributed to the overall market in recent years, primarily thanks to a sudden growth spurt in the mobile ad market in China. At the pace this segment has been growing, it is expected to surpass television as the most used and most impactful medium over the next three years. With Internet users switching from desktops to mobile devices, online advertisements are witnessing a similar switch.

However, it has also been noted that companies relying solely or mostly on marketing through mobile channels could be restricting their customer base as well as their share in the industry. Research has shown that traditional modes of promoting products and services, such as television ads, are still more effective when it comes to recall. While mobile ads can surely aid brands in achieving short-term performance, they are currently less effective in generating long-term awareness among potential customers. Hence, brands should invest in a balanced technique that optimally utilizes the advantages of traditional as well as new methods of marketing.

Asia Pacific has been a rather lucrative market, driven mainly by China, which is known to be second-largest ad market in the world. India, one of the fastest growing ad markets in Asia, is also a major contributor to APAC’s success in this industry. Some of the most advertised industries in this region are automobile, fast moving consumer goods (FMCG), and e-commerce. In countries like India, even though traditional media such as television and print are still quite popular, spending on digital advertising has been on a consistent rise.

There are certain risks every company faces while marketing its product or services. Overspending on advertising can indirectly hike the price of the product. Confusing, inappropriate, vague, or false advertisements can have an adverse impact on existing or potential customers. Companies, therefore, spend a lot of time and money on researching and understanding consumer needs, preferences, and behavior patterns when it comes to choosing the most appropriate medium for marketing. Creativity also plays a key role in this industry.

Some of the major players in the advertising market are Ogilvy & Mather, IDEO, Fuel Online, Leo Burnett, JWT, BBDO, Wieden + Kennedy, Forza Migliozzi, McCann, and Razorfish.

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