Advertising is a set of techniques and practices used for communicating with the users of a product or service. Advertisements are done for the purpose of promoting goods and services, informing and influencing people who receive them.
The advertising industry is basically a global industry of public relation and marketing companies, media services and advertising agencies.
Global Advertising Industry segmentationby Advertising Types
Television Advertising (TV and film advertisement)
Online Advertising (mobile internet ads, desktop internet ads)
Outdoor Advertising (Out of home media)
Global Market Insight
In 2016, global advertising sales reached $493 billion. According to a research it is predicted that global advertising spending will surpass $560 billion in 2019, with growth of rate 4 percent compared to the previous year. Considering region wise market share, North America is the largest regional ad market, followed by the Asia Pacific and Western Europe.
Growth in advertising spending globally from 2000 to 2021
The global advertising market has seen some fairly unstable times between 2000 and 2010. The growth rate was as high as 11.3 percent and as low as -9.6 percent from 2000 to 2010. But, after 2011 it got stabilized at 5 percent. According to predictions, in 2021 ad spending will be 4.6 per cent.
As digital advertising is going to operate and control the future as internet advertising is one of few media which has shown double-digit positive growth in investments. Internet ad spend is observed to have increased by almost 12 per cent in 2018. It is seen that cinema advertising has also experienced significant growth last year.
Global Advertising Spending by Format- 2016 vs. 2019
Global advertising in 2021
Internet is observed to be the next big thing in the advertising industry. According to research, it will account nearly half of the global ad expenditures by 2021. Television, which is favourite among advertisers from the last few decades, will be overtaken by digital media. Between 2018 and 2021 forecast period, TV is expected to lose around $10 billion, while mobile internet is projected to gain $74 billion during the same period. All other ad media, except mobile internet and cinema, are projected to lose investments in future.
Insight on Indian Advertising industry
The Indian advertising industry has grown from being a small-scaled business to a complete industry. It is projected that Indian advertising industry will be the second-fastest growing advertising market in Asia after China. The share of the Indian advertising industry was estimated to be USD 10 billion with both print and TV having a share of 38-40 per cent.