One of the reasons that internet has expanded as swiftly as it has can be attributed to the remarkable growth of e-commerce. Consumers now prefer to shop for everything from clothes to vehicles on the internet. In order to tap into this exploding market, organizations have progressively moved more of their efforts online.
The entire business model of e-commerce giants like Amazon are based on cloud marketing; utilizing the tools of internet to connect with customers. Creating a consistent buyer experience, serving customers at each step of their journey, and tracking every customer touch point require highly sophisticated real-time communication and coordination of marketers, systems, content, data, processes, and reporting.
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Typical online advertising in terms of traditional display ads are a static or flash image and call-to-action text. By contrast, cloud advertising pulls in the social and real-time aspect of the web into banner ads. The cloud-based component in this type of advertising allows brands to program display advertisements with content management systems, APIs, video servers and makes it easier to swap out or update components like lead generation forms, polls and white papers based on what’s trending in the online world.
Cloud advertising market is segmented on the basis of cloud type, service, vertical and region. By cloud type, cloud advertising market can be segmented into private cloud, public cloud, hybrid cloud and community cloud. Cloud advertising market can be segmented according to service which includes Business Process as a Service (BPaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS) and Software as a Service (SaaS).
On the basis of vertical, cloud advertising market can be segmented into public, retail, manufacturing, healthcare, transportation & logistics, media & entertainment, energy & utility and Banking, Financial Services and Insurance (BFSI). Regionally, cloud advertising market can be segmented into North America, Latin America, Western Europe, Eastern Europe, Middle East & Africa (MEA), Asia Pacific excluding Japan (APEJ) and Japan.
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With the steadily evolving usage of cloud for online advertising, cloud advertising market is anticipated to exhibit healthy CAGR during the forecast period. North America was the dominating region in cloud advertising market in 2014 with market share of more than 25%. Asia Pacific is expected to reflect highest growth rate among regional markets and will displace North America as the leading market for cloud
The key factors fueling the growth of the global cloud advertising market are functional capability and cost effectiveness. Furthermore, additional factors which are also accountable in driving the cloud advertising market, are surge in number of small & medium enterprises across all regions and growing awareness of cloud-based advertising in emerging markets such as China and India. On the other hand, looming issues of data security and privacy have discouraged a number of perceptive potential end users to select the cloud services. This, in turn, is estimated to restrain the growth of the global cloud advertising market amidst the forecast period 2015-2025.
The key vendors in the cloud advertising market include Cisco Systems Inc., Hewlett-Packard Company, Dell Inc., Microsoft Corporation, Adobe Corporation, Oracle Corporation, IBM Corporation, Salesforce.com, Amazon Web Services, Google Inc. and others. Major players in the cloud advertising market have invested billions of dollars in their marketing cloud strategies and are expected to consistently invest to expand their market coverage across the globe. Also, strategic partnership and collaborations with other vendors of the ecosystem is another approach followed by the leading vendors to enhance market presence in the cloud advertising market.