Contextual Advertising - Global Market Trajectory & Analytics

Global Contextual Advertising Market to Reach $335.1 Billion by 2026

Contextual advertising refers to advertising made available on a website and which is relevant to the content in the page. The ads are usually displayed through automated systems and ad content is directly related to web page content being viewed by the user. Ad selection in done based on keyword targeting. Also called in-context technology or in-text advertising, contextual advertising is a type of targeted advertising controlled with the help of linguistic elements. This advertising system works by scanning website text for keywords based on which, advertisements are sent to the webpage. The ads appear in the form of pop-up ads. An example of contextual advertising is display of ticket sellers and memorabilia dealers to users viewing sports websites. Search engines also use contextual advertisements for displaying ads on search result pages. The search engines use keywords in the queries of users for choosing the ads. A minimum amount of time is given for the display allowing the visitor to click on the ad and if the user does not click on it within that time, the ad changes automatically to the next relevant one. One of the main advantages with contextual advertising is that it is less irritating to users compared to conventional advertising. For this reason, it is able to effectively influence more people and increase ad response chances.

Amid the COVID-19 crisis, the global market for Contextual Advertising estimated at US$157.4 Billion in the year 2020, is projected to reach a revised size of US$335.1 Billion by 2026, growing at a CAGR of 13.3% over the analysis period. Activity-based Advertising, one of the segments analyzed in the report, is projected to grow at a 14.2% CAGR to reach US$195 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Location-Based Advertising segment is readjusted to a revised 12.8% CAGR for the next 7-year period. This segment currently accounts for a 40.6% share of the global Contextual Advertising market.

The U.S. Market is Estimated at $57.1 Billion in 2021, While China is Forecast to Reach $45.4 Billion by 2026

The Contextual Advertising market in the U.S. is estimated at US$57.1 Billion in the year 2021. The country currently accounts for a 32.76% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$45.4 Billion in the year 2026 trailing a CAGR of 16.3% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 11.3% and 11.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.4% CAGR while Rest of European market (as defined in the study) will reach US$52.1 Billion by the close of the analysis period.

The market is expected to witness encouraging growth supported by marketers making huge investments in developing new products; increase in social media users in many developed and developing countries; and increasing trend towards mobile advertising. Other key factors responsible for boosting growth include increased adoption of artificial intelligence and big data analytics in digital marketing; increased number and use of smartphones; as well as global personalized marketing strategies. Also, the use and integration of augmented reality and virtual reality in regards to digitally engaging customers is expected to offer immense opportunities for growth, while, also ensuring rapid market growth in the near future. Mobile devices, on the basis of deployment, are likely to account for the biggest size of the market. Mobile advertising is among the key advancements that is attracting customers towards a specific product, service, or brand. Growth in mobile advertising is expected to support the overall growth in the contextual advertising market globally in the near future.

Publishers are utilizing smart methods for using contextual data tools; thereby attaining more command on their contextual advertisement revenues as the focus sways away from third-party based and data-heavy audience targeting. Contextual advertisement targeting involves advertisements that are displayed to people on the basis of the environment wherein the content is being read. This is becoming increasingly nuanced as brand safety requires more specific technology tools in their classification of a page that goes beyond modest keywords. Publishers are building their context-based advertisement tools and integrating the same with first-party data segments. Publishers are pairing contextual data with existent first-party data identifiers that include email addresses or CRM records; developing duplicate audience segments for the purpose of unknown audience.

Select Competitors (Total 152 Featured) -

• Adobe Systems Incorporated
• Amazon.com
• Amobee, Inc.
• AOL
• Facebook
• Flurry
• Flytxt
• Google
• IAC
• Infolinks
• Media.net
• Microsoft
• SAP SE
• Twitter, Inc.
• Yahoo! Inc.