Product Code: 55905
The Cloud Advertising Market is expected to register a CAGR of 16.5% during the forecast period.
Key Highlights
- Cloud-based advertising platforms enable customers to build, edit, and administer display advertising campaigns without being bound by a particular device or office chair. The primary drivers of the sector are the constantly increasing usage of smartphones, extensive internet connectivity, and expanding consumption of digital media. Nonetheless, these factors are anticipated to raise the number of internet users globally over the course of the forecast period and open up fresh potential prospects for the cloud advertising market.
- Cloud-based advertising services are becoming increasingly important in the SaaS market as big data and internet commerce evolve, allowing businesses to employ commercial cloud solutions to control prices in various ways. Also, because cloud advertising is a crucial component of online marketing, it helps companies generate higher ROI than traditional marketing options.
- Technological advancements are the most important elements driving the industry. Due to the increasing demand, the key players in the cloud advertising market focus on developing cutting-edge technology solutions to rule the sector. These platforms will improve customer experiences and engagement with advertisements by utilizing innovative technology like data science, AI, and machine learning.
- Moreover, Technological advancements concerning the internet, combined with its increasing commercial application and the rapid growth in the number of internet users worldwide, have not only shaped the evolution of cloud advertising through different forms of digital advertising but have also enhanced the advertising business models, along with the market levels and players.
- Some of the e-commerce giants, such as Amazon, have integrated cloud service into their business models, which are based on cloud marketing, utilizing the internet's tools to connect with customers. It helps create a consistent buyer experience, serves customers at each step of their journey, and tracks every customer touch point required for highly sophisticated real-time communication and coordination of marketers, content, data, processes, and reporting.
- Furthermore, the growing demand for data analytics across the marketing platform by various end-user sectors is increasing the need for a unified platform to publish and improve consumer engagement programs. This is anticipated to generate many opportunities for the vendors in the market under study to increase their clientele, propelling market expansion.
- The market will eventually experience increased demand due to the rising need for digital advertising. The need for cloud advertising is growing, leading to more customer data being collected. Effective data utilization, data security issues, and strict cloud restrictions may be significant barriers to commercial expansion.
Cloud Advertising Market Trends
Software-as-a -Service (SaaS) segment is Expected to Occupy Significant Share
- SaaS is an emerging new technology that allows businesses to access and store data online. Among the key attributes of SaaS technology are flexibility, scalability, reliability, and agility. Software as a service (SaaS) helps businesses with their IT infrastructure costs in specific ways. This is the main factor driving firms to embrace SaaS apps more frequently.
- Software-as-a-Service (SaaS) refers to an alternative way of accessing software, instead of traditional access methods (where the service provider delivers software and applications through the internet and the end-users subscribe to the software and access it via the web or vendor APIs). SaaS refers to a subscription-based model in which the software is hosted in the cloud and accessed through the internet.
- The SaaS industry is expanding due to rising demand from organizations for a single solution to resolve business issues. Businesses employ SaaS Platform software, which combines several programs, including supply chain management, e-commerce, business intelligence, and customer relationship management (CRM).
- Businesses are investing increasingly in mobile SaaS, and app-based solutions as smartphones become essential to people's lives, allowing for simple access to information whenever and wherever. People may synchronize, update, and manage documents using smartphones and app-based SaaS. SaaS for mobile devices and app-based services is predicted to become more prevalent.
- SaaS-based applications can be accessed through the internet and require proper integration with on-premise systems or other clouds. The significant benefits of SaaS include no hardware costs, no initial setup costs, a pay-for-what-the-customer use factor, scalable usage, automatic updates, cross-device compatibility, and accessibility from any location. The users neither manage nor control the cloud infrastructure, which includes networks, servers, operating systems, storage, and individual application capabilities.
- The rising popularity of cloud-based services drives the demand for SaaS solutions. Several B2B SaaS suppliers who want to expand their clientele faces challenges like poor lead generation, high customer acquisition expenses, low customer retention rates, and subpar customer lifetime value.
- For instance, in February 2023, The top SaaS purchase platform, Vendr, unveiled Explore, a dynamic catalog of the entire software industry designed to assist businesses in making quicker and more informed purchasing decisions. Explore gives procurement and finance teams a clear glimpse into over 19,000 items powered by the world's most extensive SaaS data set. This enables them to evaluate alternatives and sort and filter depending on essential aspects.
- In the SaaS model, users are not given much control over the data or the application. There are also specific security concerns with straight SaaS applications. SaaS applications and services are often combined with other cloud and on-premises models in hybrid environments. Organizations often need their SaaS applications to couple with multiple different applications and platforms in their data centers and other cloud platforms.
North America to Hold Significant Market Share
- North America is dominating the global cloud advertising market due to the high cloud adoption rate among regional end users. Most of the significant market vendors are also US-based.
- Government agencies are redefining their industries in order to provide better citizen services. In order to hasten the adoption of the cloud, the U.S. government implemented the CloudFirst policy, according to the U.S. Federal Cloud Computing Strategy. This policy encourages the administration of services, innovation, and the implementation of cutting-edge technologies. This also states that the agency's fundamental competencies and mission will take priority over the technology itself.
- Governments are also benefiting from more business flexibility because of cloud usage, despite their back-end silo systems. Early cloud adopters include the U.S. Army, Air Force, Navy, DOJ, USDA, Department of Education, and more. These organizations created the trend and led the way for others to follow.
- Furthermore, the Retail Cloud Market indicates that North America is dominant as a result of the quick adoption of cloud-based solutions in the retail industry in industrialized nations like Canada and the U.S. The increase in mobile and new technology investments is also anticipated to help the regional industry maintain its dominance in the ensuing years.
- The e-commerce sector in the United States is now driven by Amazon, which will accelerate the adoption rate of cloud solutions in the region over the projected period. According to the U.S. Census, e-commerce sales were anticipated at USD 1,034.1 billion in 2022, up 7.7% (0.4%) from 2021. From 2021 to 2022, total retail sales climbed by 8.1% (0.9%). 14.6 percent of all sales in 2022 were made through e-commerce.
- All e-commerce enterprises in the region can benefit significantly from cloud computing. The entire "online transaction" business is changing because of e-commerce. The benefits and use of cloud computing in the eCommerce sector are expanding rapidly. The need for organizations to scale their operations quickly and easily, as well as the requirement for them to be able to store and access data from any location, are fueling this expansion.
- As a result, Companies in the region increasingly use the cloud to store and analyze their data, and the trend seems to continue. Businesses can cut their I.T. expenses further while reaping the benefits of utilizing cloud resources by introducing new technologies like serverless architecture and containers.
Cloud Advertising Industry Overview
The prominent players across the market have high level of market penetration into the cloud premises, bearing higher sustainable competitive advantage through innovation. All the remaining cloud advertising companies are competing to capture considerable market share, leading to high competitive rivalry. The companies operating in the market are also acquiring companies working on Cloud Advertising technologies to strengthen their product capabilities.
- September 2022 - Vochato, the industry's top supplier of sophisticated messaging software, recently unveiled a new integration with Salesforce Marketing Cloud that will enable marketers to text customers using Salesforce's Journey Builder marketing automation tool. The Avochato Salesforce Marketing Cloud integration closes the client lifecycle loop, making it one of the few organizations that can streamline SMS communications across all major Salesforce Clouds. Additionally, the business offers Slack, Okta, Zapier, and Microsoft Azure connectors.
- September 2022 - Plannuh, a top-tier marketing performance management cloud solution, has been acquired by Planful Inc., the inventor of financial performance management cloud software and Marketing Performance Management SaaS Vendor. Planful now offers smooth cooperation between the marketing and finance departments as well as other business users due to the acquisition of Plannuh. These capabilities provide cutting-edge CFOs and CMOs with the resources they need to encourage more business growth across the enterprise.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
TABLE OF CONTENTS
1 INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
- 4.1 Market Overview
- 4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Intensity of Competitive Rivalry
- 4.2.5 Threat of Substitutes
- 4.3 Impact of COVID-19 on the Market
5 MARKET DYNAMICS
- 5.1 Market Drivers
- 5.1.1 Growing Trend for the Adoption of Cloud Services
- 5.1.2 Growing Emphasis on Targeted Marketing and Competitive Intelligence
- 5.2 Market Challenges
- 5.2.1 Vulnerability Toward Data Security
6 MARKET SEGMENTATION
- 6.1 By Type
- 6.1.1 Public Cloud
- 6.1.2 Private Cloud
- 6.1.3 Hybrid Cloud
- 6.2 By Service
- 6.2.1 Infrastructure as a Service (IaaS)
- 6.2.2 Software as a Service (SaaS)
- 6.2.3 Platform as a Service (PaaS)
- 6.3 By End User
- 6.3.1 Retail
- 6.3.2 Media and Entertainment
- 6.3.3 IT and Telecom
- 6.3.4 BFSI
- 6.3.5 Government
- 6.3.6 Other End Users
- 6.4 By Geography
- 6.4.1 North America
- 6.4.2 Europe
- 6.4.3 Asia-Pacific
- 6.4.4 Latin America
- 6.4.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
- 7.1 Company Profiles
- 7.1.1 Adobe Inc.
- 7.1.2 Google LLC (Alphabet Inc.)
- 7.1.3 Sprinklr Inc.
- 7.1.4 Oracle Corp.
- 7.1.5 IBM Corp.
- 7.1.6 Microsoft Corp.
- 7.1.7 Salesforce.com Inc.
- 7.1.8 Amazon Web Services Inc.
- 7.1.9 InMobi Pte. Ltd
- 7.1.10 SAP SE
8 INVESTMENT ANALYSIS
9 MARKET OPPORTUNITIES AND FUTURE TRENDS