Market Insights Advertising & Media Advertising

Search Advertising

NAFTA

Ad spending in the Search Advertising market in NAFTA is forecasted to reach US$142.20bn in 2024.
The sector is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 8.69%, leading to a projected market size of US$215.70bn by 2029.
In a global context, the United States will account for the highest ad spending (US$132.70bn in 2024).
Within the Search Advertising market, 65.46% of total ad spending is expected to come from mobile in 2029.
The average ad spending per internet user in the Search Advertising market is projected to be US$307.80 in 2024.
In the NAFTA region, Search Advertising is experiencing a shift towards mobile-first strategies to cater to the tech-savvy American consumers.

Key regions: France, China, Germany, United States, United Kingdom

Market

Region

Region comparison

Currency

Analyst Opinion

The Search Advertising market in NAFTA is experiencing significant growth and development.

Customer preferences: Customers in NAFTA countries have shown a strong preference for online search advertising. This is due to the increasing reliance on the internet for information and the convenience of online shopping. Consumers are increasingly turning to search engines to find products and services, making search advertising an effective way for businesses to reach their target audience. Additionally, the rise of mobile devices has further fueled the demand for search advertising, as consumers are constantly connected and using their smartphones to search for products and services on the go.

Trends in the market: One of the key trends in the Search Advertising market in NAFTA is the increasing adoption of programmatic advertising. Programmatic advertising allows businesses to automate the buying and selling of ad inventory, making the process more efficient and cost-effective. This trend is driven by the desire for targeted advertising, as programmatic advertising enables businesses to reach their desired audience with precision. As a result, programmatic advertising is becoming more popular in NAFTA countries, with businesses leveraging data and technology to optimize their search advertising campaigns. Another trend in the Search Advertising market in NAFTA is the growing importance of voice search. With the increasing prevalence of smart speakers and virtual assistants, consumers are now using voice commands to search for information. This has led to a shift in search behavior, with businesses needing to optimize their search advertising campaigns for voice search. This trend is expected to continue as voice technology becomes more advanced and widely adopted.

Local special circumstances: Each NAFTA country has its own unique market dynamics and local special circumstances that impact the Search Advertising market. For example, in the United States, the market is highly competitive and saturated, with businesses investing heavily in search advertising to stay ahead of their competitors. In Canada, the market is smaller and more focused, with businesses targeting specific geographic regions and demographic segments. In Mexico, the market is still developing, with businesses gradually embracing search advertising as internet penetration increases.

Underlying macroeconomic factors: The Search Advertising market in NAFTA is also influenced by underlying macroeconomic factors. For example, economic growth and stability play a significant role in driving advertising spending. When the economy is strong, businesses are more willing to invest in search advertising to promote their products and services. Additionally, changes in consumer behavior, such as the increasing use of mobile devices and the rise of voice search, also impact the Search Advertising market. As technology continues to evolve and consumer preferences shift, businesses in NAFTA countries will need to adapt their search advertising strategies to stay relevant and competitive.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.