Procurement Market Intelligence Report
Online Advertising
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Online Advertising Global Overview
Definition
Summary
Online advertising includes mobile, digital video, e-mail and display advertising, such as web banners and text ads. Online advertising spaces can be purchased from individual websites, media conglomerates or ad networks.
This Report Includes:
- Social Media Ads
- Banner Ads
- Sponsored Search Results
Not in this Report:
- Digital advertising agency services
- Search engine marketing services
- Social media management services
Global Online Advertising Procurement Trends
Discover the top international trends affecting procurement in the global Online Advertising market.
Warning Trends
United States announces additional tariffs on China
- In February 2025, the United States announced 10.0% tariffs on imports from China. The tariffs took effect on February 4, 2025.
- The tariff plan applies to all merchandise imported for consumption and applies in addition to other duties and fees that are in place, with limited exceptions.
- In response, China announced a 15.0% tariff on products such as coal and natural gas, as well as a 10.0% tariff on crude oil, agricultural machinery, pickup trucks, and large cars. The tariff executive orders indicate retaliatory tariffs could lead to further escalation in rates.
- Providers in this market rely on inputs often sourced from China. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
United States postpones plans for sweeping tariffs on Canada and Mexico
- In February 2025, the United States announced 25.0% tariffs on imports from Canada and Mexico.
- Though initially set to take effect on February 4, 2025, the implementation of tariffs on Canada and Mexico has been postponed 30 days to allow for further negotiation.
- The tariff plan initially proposed by the US applies to all merchandise imported for consumption and applies in addition to other duties or fees that are in place, with limited exceptions.
- Providers in this market rely on input costs often sourced from an affected country. As such, ProcurementIQ will continue to monitor developments in this space and update analysis accordingly.
Positive Trends
The DOJ proposes Google breakup in latest tech antitrust action
- In August, Google was found guilty of operating as a monopoly and engaging in anti-competitive practices through the operation of its search engine business.
- In response to this ruling the Department of Justice (DOJ) has stated it will seek a breakup of Google’s business segments, among other similarly harsh penalties. While the actual penalty Google receives must be approved by the judge, the DOJ’s proposed penalties signal a zero-tolerance policy toward tech monopolies.
- During the last few years, the Federal government has significantly increased its enforcement actions against major technology companies in an effort to contest the high level of market share concentration in this sector.
- These actions include high-profile anti-trust lawsuits against Amazon, Apple, and Meta, in addition to the case against Google. Consequently, the results of these lawsuits could significantly affect the structure of a wide range of tech markets.
Global Online Advertising Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 Europe | 196,300 |
| #2 South America | 82,690 |
| #3 China | 64,720 |
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Geography Drilldown - US & Europe
Average Cost of Online Advertising
United States
2026 Market Pricing$0.25 to $X.XX
per clickEurope
Average Price
Prices in the Online Advertising market range from $0.25 to $X.XX, depending on Platform, Ad characteristics, Ad Industry, Premium status and Order size. For example, lower prices are associated with Pinterest ads ($1.08 to $1.62), Facebook ads ($0.81 to $1.35) and Google display ads ($0.54 to $1.08), whereas higher prices are associated with LinkedIn ads ($4.87 to $6.50), Instagram ads ($3.25 to $4.33), YouTube ads ($2.71 to $3.79) and Google Search ads ($2.17 to $3.25).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Online Advertising Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Online Advertising market, prices in the US have grown 3.0% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +0.9%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Online Advertising
Total cost of ownership is Low in the Online Advertising market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Implementation
Billed During
Support
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -1.0 in the United States. Buyer power is most positively impacted by Forecast Price Trend. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Data Processing and Hosting
- Internet Service Providers
- Software Publishers
2nd
Tier Suppliers
- IT Consulting
- Telecom Networking Equipment Manufacturers
- Computer Manufacturers
Biggest Online Advertising Suppliers in the US by Revenue
The largest Online Advertising vendors by revenue in the US are Comcast Corporation, Verizon Communications Inc. and Meta Platforms, Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Meta Platforms, Inc. | Global | MENLO PARK, CA | >10,000 | 10-15 | ||||
| Alphabet Inc. | Global | MOUNTAIN VIEW | >10,000 | 25+ | ||||
| Amazon.Com, Inc. | Global | Seattle | >10,000 | 5-10 | ||||
| Microsoft Corporation | Global | REDMOND, US | >10,000 | < 5 | ||||
| Verizon Communications Inc. | Global | NEW YORK, NY | >10,000 | < 5 | ||||
| Comcast Corporation | Global | PHILADELPHIA, PA | >10,000 | < 5 | ||||
| Walt Disney Co | Global | BURBANK, CA | >10,000 | < 5 | ||||
| Charter Communications, Inc. | National | STAMFORD, CT | >10,000 | < 5 | ||||
| Viacomcbs Inc. | NEW YORK, NY | >10,000 | < 5 | |||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Online Advertising market is 18.7% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is stagnating, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Average vendor risk is low, meaning that buyers face minimal risk of their vendor unexpectedly exiting the market for financial reasons.
Market share concentration is high, reducing buyers’ leverage to negotiate lower prices.
The minimal need for physical goods to provide online advertising means that supply chain risk in this market is low. This factor reduces the possibility of sudden price swings due to supply chain disruptions.
The moderate pace of regulatory change in this market means that suppliers may pass some compliance costs on to buyers as they adjust to the shifting regulatory environment.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Meta Platforms, Inc.
Meta Platforms, Inc. is a public company operating globally in the information sector. The company's offerings include website analytics software and online advertising. Founded in 2004, the company is currently headquartered in MENLO PARK, California, United States of America with an estimated 75842 employees.... Subscribe to learn more
Alphabet Inc.
Alphabet Inc. is an Internet technology company offering various products, services, and solutions spanning computing, search, cloud, and online advertising technologies. It organizes its business into three segments: the Google Services Segment, which includes ads, Android, Chrome, hardware (including Fitbit,... Subscribe to learn more
Amazon.Com, Inc.
Amazon.com, Inc. is a global e-commerce company that offers a range of consumer products and services through online and physical stores. It resells merchandise and content and offers products from third-party sellers. It also manufactures and sells electronic devices and develops and distributes media content.... Subscribe to learn more
Charter Communications, Inc.
Charter Communications, Inc. /MO/ is a broadband connectivity company and cable operator serving customers across the US under the Spectrum brand. It offers a full range of subscription-based connectivity services, including fixed and mobile Internet, video, and voice services to residential and business Subscribe to learn more
Comcast Corporation
Comcast Corporation is a public company operating globally in the information and accommodation and food services sectors. The company's offerings include air cards, pbx phone systems, online advertising, internet services, network voice services. Founded in 1963, the company is currently headquartered in... Subscribe to learn more
Fox Corporation
Fox Corporation is a news, sports, and entertainment company. Its iconic brands include FOX News Media, FOX Sports, FOX Entertainment, and FOX Television Stations. It organizes its business into three business segments: Cable Network Programming segment, which consists of the production and licensing of news... Subscribe to learn more
IAC Inc.
IAC Inc. is an Internet holding company that develops and acquires established and early-stage businesses. It operates through its subsidiaries: Angi Inc., a home service digital marketplace connecting professionals with consumers across more than 500 different categories, from repairing and remodeling homes... Subscribe to learn more
Match Group, Inc.
Match Group, Inc. is a global provider of online dating platforms. Its portfolio of brands includes Tinder®, Hinge®, Match®, Meetic®, OkCupid®, Pairs™, Plenty Of Fish®, Azar®, and BLK®, as well as other brands designed to increase its users’ likelihood of finding a meaningful connection. Its mobile applications... Subscribe to learn more
Microsoft Corporation
Microsoft Corporation is a technology company offering digital technology and artificial intelligence (AI) to businesses and individuals worldwide. It develops cloud-based solutions that deliver customers with software, services, platforms, and content and provides solution support and consulting services.... Subscribe to learn more
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Procurement Management KPIs for the Online Advertising Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Interest Rate (Likes, Reactions, Favorites) and Link Clicks. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance & Security Standards and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Interest Rate (Likes, Reactions, Favorites) |
|
Engagement Rate Number of likes, reactions, favorites |
If buyers purchase online advertising from social media platforms in the form of promoted posts, tracking engagement on these posts can give insight on how effective these advertisements are. In particular, buyers can use engagement rate, the number of likes, reactions, favorites as a percentage of impressions, to gauge how much users are engaging with the promoted post. |
| Link Clicks |
|
Number of click-throughs Click-through rate |
To ensure that an ad is being displayed to the right audience and is presented effectively on the vendor’s website(s) buyers should track how often impressions result in click-throughs. Currently, the global average click-through rate for all online ads is 0.06% though the expected click-through rate for an ad varies dramatically based on the type of online advertisement and what is being advertised. Buyers can use data from their own previous campaigns, publically available data from sources such as Smart Insights, or data provided by their chosen supplier to create more accurate click-through rate benchmarks for their campaigns. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Service Performance
What different types of online advertising do you sell?
How much control will I have over the placement of my advertisement?
Experience and Expertise
What websites does your company own?
What are the demographics of your websites' audiences?
Reliability
Is your company at risk of bankruptcy?
How does your company drive sales when the economy is growing?
The ultimate prep for procurement negotations
View all 33 negotiation questions for this category when you subscribe.
Online Advertising RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should state the purpose of their organization, including the industry in which they operate.
Buyers should state the purpose of their advertising efforts, including their target markets.
Statement Of Need
Buyers should include the type of online advertisements that they are planning to post (e.g. banner, video).
Buyers should specify whether they prefer premium or nonpremium ad space; if the former, buyers should specify their preferred type of websites and the characteristics of their target audience.
Project Budget
Buyers should inquire into the standard pricing schemes.
Buyers should request any available ROI analysis on higher-priced options.
The RFP process made easy
Find out how you can access RFP templates for 800+ procurement categories to start writing better, more consistent RFPs.
We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
