Ad infinitum: Advanced algorithms are attracting advertisers and additional revenue

The Online Advertising industry has strongly grown over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is moderately concentrated, with the top four players accounting for over half the industry. Google is the dominant player in the industry, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts significant advertising revenue from its online video service, more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Income from mobile ads is anticipated to be a key source of industry revenue growth
  • Concerns regarding user privacy have made data gathering more difficult for some advertisers
  • Players will face increasing competition for targeted advertising sales from social networks
  • Industry Report - Starting a New Business Chapter

    The Online Advertising industry has high barriers to entry. Industry firms require access to skilled software programmers, IT professionals and systems engineers. Demand for these skilled workers far exceeds supply. Online advertising also requires substantial computing resources for running sophisticated software algorithms to develop targeted advertisement user profiles. Operators often need to develop their own algorithms, unless an entrant chooses to license a competitor's technology.The share of internet traffic originating from smartphones and tablets has grown over the past five years. This has become a potential point of entry for new players, particularly through free mobile apps, which can have associated advertising through linked banner or video advertising. Thi...purchase to read more.

    Additional Insights for the Online Advertising Industry

    IBISWorld has determined the most important Key Success Factors for the Online Advertising are:

  • Access to the latest available and most efficient technology and techniques
  • Access to highly skilled workforce
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Internet subscribers and Demand from advertising services in the Online Advertising industry impact industry performance..

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    What's in this report

    What is the Online Advertising Industry?

    Industry companies operate online advertising services, including web banner advertisements, search engine key word ads, online video advertisements and other forms of online advertising. Firms generate revenue by selling advertising space or sponsoring search results presented to portal users.

    Industry Products
  • Search Engines
  • Directories
  • Classifieds
  • Videos
  • Industry Activities
  • Providing web banner advertising
  • Providing social media advertising
  • Providing online video advertising
  • Offering online search directory services
  • Offering online classified services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Internet subscribers
  • Demand from advertising services
  • Consumer sentiment index
  • Business confidence index

  • Current Performance
  • Big data
  • Online shopping
  • Major player dominance
  • Chart: Revenue Growth

  • Industry Outlook
  • Mobile searching
  • Data privacy
  • Diverted Profits Tax
  • Table: Online Advertising Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Online Advertising Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Real Estate Services
  • Consumer Goods Retailing
  • Finance
  • Online Shopping
  • Tourism

  • Key Selling Industries
  • Data Storage Services
  • Internet Service Providers
  • Wireless Telecommunications Carriers

  • Products & Services
  • Search Engines
  • Other
  • Classifieds
  • Directories
  • Videos
  • Chart: Online Advertising Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Retailers
  • Real estate companies
  • Financial service providers
  • Travel and tourism operators
  • Telecommunications providers
  • Automotive firms
  • Chart: Major Market Segmentation for the Online Advertising Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Online Advertising

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Online Advertising Industry

  • Industry Globalization
    Google Australia Pty Ltd, REA Group Ltd, Facebook Australia Pty Ltd,
  • Table: Google Australia Pty Ltd - financial performance
  • Table: REA Group Ltd - financial performance
  • Table: Facebook Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Online Advertising Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Online Advertising Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    5G Network
  • 5th generation cellular mobile communications network, which uses higher frequency radio waves than current 4G mobile technology to achieve faster data transferal rates.
  • Adblocker
  • A web browser extension or independent software designed to block online advertisements.
  • Search Algorithm
  • A computer algorithm used to find items with specified properties among a collection of items that are coded into a computer program.
  • Targeted Advertising
  • Advertising that uses data gathered from a consumer to determine consumer preferences and behaviours, to deliver more relevant advertisements.
  • What Our Customers Say

    Why buy this report?

    The Online Advertising market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Online Advertising:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Online Advertising market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Online Advertising, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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