The global search advertising market size was valued at USD 164.12 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2021 to 2028. The increasing internet penetration rate and the rising number of smartphone users across the globe are the factors accelerating the growth. Search advertising has become a great tool for companies to increase their brand awareness across the globe. Moreover, consumers are relying on the search to make their purchase decisions. This may accelerate the growth of the market. In addition, search engine advertising has a higher conversion rate of advertisement as compared to other advertising channels across devices has expected to drive the growth of the market.
Search engine advertising is gaining popularity in the marketing world owing to the most advanced innovations, cost-effective strategies, and eco-friendly environment. This factor is anticipated to drive the adoption of search engine advertising. Technological developments and advancements in big data analytics, Machine learning (ML), and Artificial Intelligence (AI) have allowed the identification of potential customers and delivery of customized advertising content, which in turn will accelerate the market growth over the forecast period.
The increasing spending on programmatic digital advertising has expected to accelerate the market growth over the forecast period. Moreover, rapid urbanization and growing disposable income across the developing economies are boosting growth. The escalating number of internet users coupled with affordable data plans in developing economies is driving the growth of the market. Additionally, the increasing youth population in emerging countries like India and China owing to the higher acceptability of online channels as compared to offline channels is boosting the market growth.
Advancements in search engines like voice search to increase the effective search for users are expected to accelerate the market growth over the forecast period. However, strict government regulations regarding data security and privacy, such as General Data Protection Regulation (GDPR) in Europe will continue to hinder the growth of the market. This has a significant impact on the collection, storage, and usage of customer data for delivering modified advertising content as per the customer.
The mobile segment contributed to the largest market share of around 65% in 2020 and is expected to register the fastest CAGR of over 9.0% from 2021 to 2028. The rising penetration rate of reasonable smartphones and the growing trend among the consumer to gain access to content according to their convenience are supporting the growth of the segment. Moreover, the rising availability of affordable mobile data plans and 4G network technology are the factors anticipated to fuel the growth of the market.
The desktop segment is expected to register the second-fastest CAGR of 7.5% from 2021 to 2028. Changing lifestyle and preferences among the consumer is a major reason for the shifting from traditional platforms like newspapers to digital platforms which in turn has accelerated the market growth. Additionally, the general trend among the users to access the desktops and laptops for educational and business purposes as well as professional usages, due to better viewing experience are encouraging the advertisers to adopt desktop channels for adverting purposes.
The retail segment contributed a share of over 20% in the global search advertising market in 2020. The rising spending on paid search by various industries for promoting their products and brand awareness is accelerating the market growth. Moreover, the increasing popularity of search advertising for retail products marketing due to the high conversion rate of the ads is supporting the industry demand. Furthermore, increasing online shopping by the consumers has led the retail industry to spend more on search advertising, this accelerates the market growth.
The consumer goods segment is expected to register the fastest CAGR of 10.5% from 2021 to 2028. The rising adoption of search advertising to build awareness about a particular product across the globe is propelling the growth of the market. In recent years, consumer goods companies are actively increasing advertising spending is a major driving force of the digital advertising industry. This factor is anticipated to contribute to the overall growth of the market for search advertising over the forecast period.
North America made the largest contribution to the global market of over 35% in 2020 due to the increasingly mobile and internet penetration rate. Rapidly increasing investments associated with digital advertisements especially in search advertising are expected to drive the growth of the regional market. Moreover, the U.S. has a strong foothold of digital advertising companies like Google Inc.; Microsoft Corporation; and Amazon. This is accelerating the growth of the regional market over the last few years.
Asia Pacific is the fastest-growing region and is expected to witness a CAGR of 9.2% from 2021 to 2028. This can be accredited to the increased spending on search advertising in emerging countries like China, India, and Japan owing to the huge consumer base. Moreover, increasing popularity and acceptance of the online channel among the youth has projected to boost the market growth over the forecast period. Furthermore, the massive penetration of smartphones and affordable data plans in Asian countries is further expected to accelerate the growth.
The market is characterized by the presence of various established market players of search advertising across the globe. Some of them are Google, Amazon, Microsoft, and Yahoo along with numerous small and medium players. Companies are focusing on launching new functions to meet consumers’ expectations by offering a trending digital advertisement format. For instance, in July 2020, Google has launched new features to aid advertisers to make their products stand out in web search results and on other platforms. The vendors are expanding their reach across the globe with an innovative business model. Such initiatives are expected to boost product adoption. Some of the key players operating in the global search advertising market are:
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Report Attribute |
Details |
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Market size value in 2021 |
USD 178.15 billion |
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Revenue forecast in 2028 |
USD 318.10 billion |
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Growth Rate |
CAGR of 8.6% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD billion/million and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Platform, industry vertical, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Germany; U.K.; France; China; India; Japan; Brazil; South Africa |
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Key companies profiled |
Google; Amazon; Microsoft; Yahoo; Verizon Media; Yelp; IAC; Baidu; Ask |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Million Insights has segmented the global search advertising market report based on platform, industry vertical, and region:
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