Today: November 27, 2015, 4:29 pm

Global online ad spending market: 12% CAGR growth forecast between 2012-2016
Global Online Ad Spending Market 2012-2016 - a new market research report on 2014-04-29 04:10:02
The Global Online Ad Spending market is to grow at a CAGR of 11.54 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increase in online ad spending. The Global Online Ad Spending market has also been witnessing a shift from direct response advertising to brand advertising. However, data security concerns could pose a challenge to the growth of this market.

As a result of rapid digitalization, marketers have started using the online medium for branding their product offerings rather than waiting to receive a direct response. The advertising spend on branding through online mediums has been increasing in the past few years, mainly because of the increased adoption of broadband, smartphones, and tablets. There has been increased ad spending on branding through online mediums because companies have started realizing the opportunities online mediums bring to them in the form of consumer insights, which can be used for creating superior value propositions. Also, as a result of higher consumer-brand involvement in the online medium, companies get more consumer insights. Thus, the shift to brand advertising from direct response advertising is expected to have a positive impact on the Global Online Ad Spending market.

One of the main drivers in this market is the increase in spending on online advertising. With the rising number of internet users, various companies have channelized their ad budgets toward the online medium for better targeting and positioning.

One of the key challenges in this market is the growing concerns of data security among consumers. Consumers are reluctant to share their personal information online or make online transactions because there is a risk of their personal data being shared by companies that could lead to a lack of privacy and in worse cases, fraudulent transactions. Moreover, consumers are unaware about how and when their information is being shared.

The key vendors dominating this space include AOL Inc., Facebook Inc., Google Inc., Microsoft Corp., and Yahoo! Inc.

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