Cloud Advertising Market: Current Analysis and Forecast (2024-2032)

Cloud advertising means advertising that is run through cloud marketing platforms to allow digital ad campaigns to be run across different networks. AI, machine learning, data analytics are best used combined for real-time targeting and performance optimization. This has made it possible for the businesses to convey advertisements in a more efficient way, and at the same time, they can be personalized. Indeed, various kinds of cloud services are effective tools for today's advertising due to their flexibility, availability, and affordability.

The Cloud Advertising Market is expected to grow with a significant CAGR of 19.5% during the forecast period (2024-2032). The adoption of cloud advertising is mainly due to the demand for more efficient marketing strategies that are based on data and provide better targeting along with higher ROI. The practical application of artificial intelligence and machine learning has provided the knowledge to analyze huge amounts of data for effective advertising campaigns management in real-time. Further, with the focus on mobile ads and adopting the omnichannel advertising strategy along with programmatic buying, which has forced the businesses to shift to the cloud environment for ad management.

For instance, on January 9, 2024, GroupM, WPP's media investment group, announced a collaboration between GroupM Nexus, the industry-leading performance marketing organization and Amazon Ads, to co-develop and launch the Amazon Marketing Cloud Maturity Framework. Available to GroupM clients, the custom offering will rigorously assess marketers' maturity level with Amazon Marketing Cloud to align their business needs with the most suitable Amazon Marketing Cloud solutions.

Based on the component, the market is segmented into platforms and services. The platforms held a significant share of the market in 2023 because cloud advertising platforms help in increasing business growth because they offer data-driven, automated advertising solutions that are also easily scalable. The need for the successful implementation of omnichannel advertising leads to the use of platforms in digital, mobile, and social networks. For instance, on October 15, 2024, Amazon Ads announced a series of innovations across the Amazon Demand-side Platform (Amazon DSP) that drive precise full-funnel audience reach with streamlined campaign planning and optimization. Amazon Ads has a unique, deep understanding of the path customers take from awareness to conversion and is delivering capabilities that all brands can easily use to create and strengthen relationships with their customers, regardless of the size of their business, their products, or which services they sell.

Based on deployment, the market is segmented into public, private, hybrid. On-premise held a significant share of the market in 2023. The hybrid-advertising models also incorporate both the public cloud solutions and the private cloud solutions for versatility, security and capacity. This fosters growth as it enables businesses to achieve cost optimization while adhering to standard compliance with databases, which is crucial for business organizations falling under the sectors of manufacturing, banking, financial, or any industrial organization. The integration of more elements within hybrid models would facilitate live ad delivery in multiple ecosystems save for personal information.

Based on the organization size, the market is segmented into large enterprises and small and medium enterprises. Small and medium enterprise is expected to grow with a significant CAGR during the forecast period (2024-2032). They contribute to cloud advertising to capture larger markets by enhancing their digital advertising budgets. They use efficient AI-based clouds for proper advertising, automation, and fast analysis of results achieved with the help of advertising. Cloud technologies enable SME to better manage the advertising budget, strengthen the relationship with customers, and increase conversion rates through all possible platforms. Smarter business professionals use cloud for advertising with integrating CRM as well as e-commerce in order to make their marketing effective for a large return on investment. For instance, on January 21, 2025, Audiencerate, an innovative technology company, leader in the development of advanced solutions for digital marketing (MarTech) and online advertising (AdTech) announced that it has signed a partnership agreement with V-Valley, a company of the Esprinet Group focused on the distribution of Advanced Solutions. Thanks to its partnership with Microsoft, Audiencerate is at the forefront of integrating artificial intelligence and cloud computing to optimize marketing and advertising strategies. This strategic agreement between V-Valley and Audiencerate aims to support SMEs in the process of digitalization and innovation, facilitating access to advanced technologies and contributing to their digital transformation by providing the necessary tools to compete in an increasingly data-driven market.

Based on end user, the market is segmented into retail and consumer goods, media and entertainment, IT and telecom, BFSI, healthcare, manufacturing, travel and hospitality, and others. BFSI (Banking, Financial Services, and Insurance) held a considerable share of the market in 2023. This is because the industry requires a high level of customized and consumer analytics in advertisements in order to enhance client attraction. It also gives the financial institutions the ability to target specific segments with secure cloud advertisements that are compliant with any regulatory requirement. Currently, Wipro and IBM among others provides services, which focus on the aspect of cloud to ensure compliance is met besides working on ad spends. The BFSI industry uses advertising with the help of cloud by implementing AI in personalization, fraud detection, and omni-channel advertising approaches. This improves the level of customer confidence, interaction and sales lead effectiveness. For instance, on January 20, 2025, Bharti Airtel, one of India's largest telecom services providers and Bajaj Finance, the country's largest private-sector Non-Banking Financial Company (NBFC), announced a strategic partnership to create one of India's largest digital platforms for financial services and transform last mile delivery. The one-of-a-kind partnership brings together Airtel's highly engaged customer base of 375 million, 12 lakh+ strong distribution network, and Bajaj Finance's diversified suite of 27 product lines, and distribution heft of 5,000+ branches and 70,000 field agents.

For a better understanding of the market adoption of Cloud Advertising, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia-Pacific is expected to grow with a significant CAGR during the forecast period (2024-2032) owing to the development of the cloud advertising such as digital transformation, mobile marketing, and the emergence of e-commerce. The analysis of the different consumers in the region reveals that Internet usage is on the rise and makes the adoption of cloud advertising solutions suitable. The organizations in this region incorporate the use of artificial intelligence and machine learning to make more sustainable and efficient investment decisions in advertising and subsequently offer tailor-made advertisement crusades at commercialize. The opening up of middle class and the continuous growth of usage of devices such as mobile phones also help to drive the need for advertising through the cloud. With this adoption, the brands are in a position to grow at the digital level and ensure they get the most out of their endeavors. For instance, in October 2022, India's automotive manufacturer Mahindra & Mahindra provided a personalized omnichannel experience to customers by automating their journey with the company using Salesforce. Mahindra also uses Marketing Cloud Advertising to create targeted ads at scale on digital platforms. And with Marketing Cloud Intelligence, they can efficiently surface marketing insights on campaign performance.

Some of the major players operating in the market include Adobe, SAP SE, Salesforce, Inc., Google, IBM, Amazon, Microsoft, The Nielsen Company (US), LLC., Mediaocean, Wipro.