21st century witnessed the arrival of cloud technology that is now used in almost every industry and activity. It has played a vital role by offering data storage and remote access that translates into user convenience. With its increased proliferation, various activities have been undergoing transformations and companies are largely relying on these upgraded activities including but not limited to email marketing and social media marketing. This prevalence of cloud initiated the concept of cloud advertising which is being used in everyday activities, be it household or commercial businesses.
Business in the Clouds - A Key Factor Accelerating Use of Cloud Advertising
With the advent of digital age, marketing has been undergoing positive transformations. With its on-going evolution, demand of users for analytics to gain sufficient clarity has been observed. Moreover, remarkable growth of the E-commerce industry has transformed traditional business models that feed on cloud advertising. Cloud-based marketing component - cloud advertising - has enabled businesses to raise their visibility quotient among consumers, in turn witnessing a significant boom in volume sales. Additionally, growth in technology has translated into availability of different gadgets for various activities. Rising mobile phone usage, especially for carrying out personal activities such as shopping has triggered use of cloud-based services. For instance, according to Google, off 10, 6 people use mobile phones to shop as it gives better clarity for brand selection. This aspect has triggered the demand of using unconventional online marketing in turn spearheading the growth of cloud advertising market.
North America to Maintain Lead; APAC Likely to be Prospective
North America has always been at the forefront when it comes to technology usage. Better infrastructure services and higher GDP per capita have resulted in increased cloud adoption by individuals and businesses, giving an edge to the cloud advertising market. Early adoption of cloud advertising coupled with increasing usage of mobile phones in developed economies of US and Canada are expected to contribute to the growth of cloud advertising market in North America.
On the other hand, developing countries in APAC are expected to showcase higher inclination towards use of cloud services. Emerging economies underlined with cheap labor cost, are and ease in regulations are being eyed upon by various companies across industries. This has given a potential opportunity for technology companies to establish presence and cloud advertising is no exception. Demand for convenience, online and e-commerce platforms are witnessing a significant boost in the region. This has accelerated demand of cloud advertising by various SMEs in Asia Pacific.
Security Concerns and Regulations Likely to Impede Growth of Cloud Advertising Market
With good potential for growth on one side, the other side of the coin has few aspects that pose challenges. For instance, cyber attacks have always been a major concern for businesses. Moreover, with new technologies, cyber attacks are on the rise and will continue to pose challenges. Cloud computing is no exception. According to the survey done by Trustwave Global Security, in 2020, cloud environment is the third most targeted for cyber attacks. This aspect continues to question data security and in turn growth of cloud advertising market.
In addition, stringent regulations around cloud advertising are likely to hamper the market growth. Several regulatory bodies have set rules for cloud advertising in a bid to ensure optimal security. For instance, bodies such as FISMA, HMG, NIST, FedRAMP and ISO have laid strict regulations that cloud advertising providers need to comply. In view of reducing concerns related to PCIDSS (Payment Card Industry Data Security Standard), HIPAA (Health Insurance Portability and Accountability Act) and protection of consumer data, cloud advertising vendors need to follow regulations, however, it becomes tedious in synchronizing data collected from various touch points in one format. Albeit at a moderate intensity, this factor is expected to have a negative impact on the growth of cloud advertising market.
With advancing technology and its demand across industries, the cloud advertising is likely to witness innovative upgrades, in turn offering a promising market for companies. Adobe, Salesforce, Oracle, IBM, Google, SAP, PEGA, InMobi, Experian and Acquia are few of the leading companies operating in the cloud advertising space.
Please Note: The above mentioned segmentation/companies/countries are likely to differ in the actual report as they are based on preliminary research.