Definition of Contextual Advertising Market 

Contextual advertising is a computer-assisted process that matches a promotional message with relevant digital content. Moreover, its algorithms select advertisements based on keywords and other metadata included in the content. In context targeting, linguistic components used in the content of a website are used to govern the media used for advertising. Moreover, it is an automated process under which promotional message is matched to relevant digital content. Based on the context of what a user is viewing, automated systems choose and serve the ads themselves.

Global Contextual Advertising Market: Key Insights

Global Contextual Advertising Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global contextual advertising market is estimated to garner a revenue of USD 700.0 Billion by the end of 2035 by growing at a CAGR of ~18% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 210.0 Billion in the year 2023. The growth of the market can be attributed to the increasing spending on marketing by the brands. Furthermore, advertising helps to build an image of brands in the customer's mind that contributes to the rise in the sale of products and services.  For instance, more than USD 284 Billion has been invested in promotional activities in the year 2021 in the United States  

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Contextual advertising is a computer-assisted process that matches a promotional message with relevant digital content. Moreover, its algorithms select advertisements based on keywords and other metadata included in the content. The major types of contextual advertising are divided based on deployment in desktops, digital billboards, mobile devices, and others. Furthermore, an increasingly social media trend among people is anticipated to boost the growth of the global contextual advertising market. Nearly 60 percent of people across the globe use social media at the beginning of the year 2022.

Global Contextual Advertising Market: Growth Drivers and Challenges

Growth Drivers

• Increasing Internet Penetration in Developing Countries– There has been a growing number of people using the internet in developing countries owing to the gradual increase in the quality of life. Therefore, it is anticipated to drive the growth of the global contextual advertising market. According to the World Bank, the total percentage of the population in low and middle-income countries using the internet grew from 33 percent in 2015 to 54 percent in 54 percent.

• High Adoption of Online Sales- People have opted for online shopping owing to the comfort and high preference provided to them. Therefore, it is projected to increase the growth of the global contextual advertising market. More than 35 percent of all businesses across the globe are making online sales.

• Surging Smartphone Users– There has been an increasing trend of providing information related to the brand among consumers owing to the surging smartphone users. Hence, it is expected to rise the growth of the global contextual advertising market. The global smartphone users have been more than 6 Billion in the year 2021.

• Rising Consumer Awareness with the Onset of COVID-19– Nearly 80 percent of consumers has shifted their preferences based on social responsibility, environmental impact, and inclusiveness.

Challenges

• High Cost of the Contextual Advertising

Contextual advertising is one kind of selling cost that contributes to the demand for an organization’s products. Moreover, there is a direct relationship between the selling cost and the sale of the products and services. Hence, the high cost of contextual advertising can hamper the growth of the global contextual advertising market.

• Limited Access to Information Related to the Consumers

• Lack of Skilled Employees for Contextual Advertising

The global contextual advertising market is segmented and analyzed for demand and supply by type into location, and activity-based advertising. Out of these, the activity-based advertising segment is anticipated to hold the largest share over the forecast period owing to the rising number of social media users followed by an increase in the number of internet users. Moreover, activity-based advertising gives importance to the activity of the audience, so that valuable content is provided to the audience in real-time. More than 400 million of the general population joined social media in 2021-2022.

Global Contextual Advertising Market Regional Synopsis

The North American region market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035 on the back of an increase in the number of social media users, a rising mobile advertising trend among people, and a surging number of smartphones. Moreover, organizations are ready to spend more on advertising to grow their businesses on a larger scale. In the year 2020, mobile advertising spending has increased by more than 19 percent accounting for approximately 195 Million in the United States.

Market Segmentation

Our in-depth analysis of the global contextual advertising market includes the following segments:

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Key Companies Dominating the Global Contextual Advertising Market

Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global contextual advertising market that are included in our report are SAP SE, Amobee, Inc., Flurry, Twitter, Inc., Alphabet Inc., Amazon.com, Inc., Microsoft Corporation, MEDIA.NET, IAC, Flytxt, Infolinks, and others.

Global Contextual Advertising Market: Latest Developments

• June 2022: Amobee, Inc., announced the relaunch of DataMine, its leading campaign intelligence engine. The campaign storytelling is integrated with media data sets and event-level audiences allowing advertisers to make real-time adjustments based on data-driven and actionable insights.

• March 2021: Infolinks, announced its partnership with the Global Disinformation Index to deal with the complexity and subjectivity of rising disinformation.

Geography Analysis:

The report further discusses the market opportunity, compound annual growth rate (CAGR) growth rate, competition, new technology innovations, market players analysis, government guidelines, export and import (EXIM) analysis, historical revenues, future forecasts etc. in the following regions and/or countries:

• North America (U.S. & Canada) Market Size, Y-O-Y Growth, Market Players Analysis & Opportunity Outlook
• Latin America (Brazil, Mexico, Argentina, Rest of Latin America) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Europe (U.K., Germany, France, Italy, Spain, Hungary, Belgium, Netherlands & Luxembourg, NORDIC(Finland, Sweden, Norway, Denmark), Ireland, Switzerland, Austria, Poland, Turkey, Russia, Rest of Europe), Poland, Turkey, Russia, Rest of Europe) Market Size, Y-O-Y Growth Market Players Analys  & Opportunity Outlook
• Asia-Pacific (China, India, Japan, South Korea, Singapore, Indonesia, Malaysia, Australia, New Zealand, Rest of Asia-Pacific) Market Size, Y-O-Y Growth & Market Players Analysis & Opportunity Outlook
• Middle East and Africa  (Israel, GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa, Rest of Middle East and Africa) Market Size, Y-O-Y Growth Market Players Analysis & Opportunity Outlook

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