Digital advertising market

Abstract

Introduction. Digital advertising has long dominated the overall structure of the adver­tising market. The main reasons for this situa­tion are the systematic increase in the number of Internet users, the development of technolo­gies, and e-commerce.

Problem. Offline advertising’s share in the total advertising spending has been steadily declining in recent years. Therefore, determi­ning the market status and key trends of digital advertising, which is a significant driver of the economy, remains relevant.

The aim of the article is to investigate the status and major trends of the digital advertising market.

Methods. General scientific research met­hods are applied, in particular, empirical (des­cription) and theoretical (analysis, synthesis, abstraction, generalization, induction, deduction, classification, etc.) to assess the current state of the advertising industry, as well as systematic to summarize the research results, formulation of conclusions.

Results. In 2021, the digital advertising segment reached $521 billion and has a growth trend of 7–16 % annually. In Ukraine, the di­gital advertising segment has grown more than 37 times over the past 10 years, while the total advertising media market has grown only five times. The growth of the digital advertising mar­ket is closely associated with the penetration of the Internet, the technology development, and e-commerce. In particular, from 40 to 80 % of buyers search online before making a purchase, which presents an opportunity for advertisers to reach a potential audience with digital adver­tising. The growth of Internet users in 2021 amounted to 4 %, while the time of Internet use during the day reaches almost 7 hours.

Conclusions. The war and the pandemic will cause the growth of stagnation in the eco­nomy and, as a result, an increase in the share of spending on digital advertising. At the same time, the growth of e-commerce will continue, but not at the same pace as in the pre-war period. The e-commerce and digital advertising sector will continue to grow from 2022 to 2027. Despite all the problems and challenges of 2022, there are enough prerequisites that all areas of digital advertising will develop and continue to grow from 2023 to 2027.