ID: MRFR/ICT/6086-CR | February 2020 | Region: Global | 111 pages
Global Online Classified Market size is predicted to touch USD 463,033.3 Million at a 20.2% CAGR between 2018- 2023, reveals the latest Market Research Future’s (MRFR) online classified market forecast report. The strong growth of the market can be accredited to the increasing adoption of mobile devices and increasing advertisement through mobile devices.
The COVID-19 outbreak has influenced people’s daily lives in ways more than expected. Lockdown and social distancing have become common trends across the world, there has been an exponential increase in remote work, retail operations have been shut, and ad budgets for search and online classifieds have taken a hit. This pandemic has disrupted people’s work-life and daily routines equally.
This crisis had a major impact on different industries, and online classified is no exception. Business owners with this outbreak are assessing all their marketing efforts while wondering if this time is the most opportune to run online classified ads. With the majority of the end-users today operating online through digital gadgets along with the uncertainty of this pandemic to end, most organizations are all set to shift their advertising investments on a digital or online platform. At this challenging time, organizations are on the lookout for affordable alternatives to traditional marketing methods to lure customers. Online classified ads offer all these benefits to organizations that they are searching for at the time of the coronavirus quarantine.
The online classified space has seen an exponential growth in online content consumption, particularly on gaming, OTT, and social media, and has largely increased online viewership along with the demand for advertising being subdued for the on-going situation, apart from selected categories such as health and hygiene, and essentials. Online advertisers across industries have differently responded to this situation, and ads for health and hygiene products and essentials continue across media, the majority of the non-essential categories have limited communications to online advertisers for classifications under planned purchases have become dark. Some organizations are doubling brand building by bringing into the limelight their efforts to combat this situation.
The rise in social media traffic is offering unique opportunities for engaging with online audiences, along with high brand awareness. Following the on-going COVID-19 pandemic spreading uncontrollably, the government across the world is leaving no stone unturned to contain the same by closing borders, schools, and public spaces, which has transformed all marketers and businesses in updating their marketing strategies online.
Affordability of Online Classified to Bolster Market Growth
Increasing penetration of smartphones & the internet and rising penetration of media and electronic devices have converted classified into online or digital. People these days get what they look for easily and quickly online. An online classified is an affordable and easy means for individuals and small businesses to get connected with prospective customers. With regards to growth prospects or future-oriented business, there cannot be anything more affordable and better compared to online classified platforms.
Other factors boosting the online classified market share include the booming retail e-commerce industry, rise in smartphone users, growing internet penetration, increasing global youth population, increase in broadband service providers, cost-efficient and convenient, broader platform over traditional advertising medium using the print media and television, and a huge degree of addiction to smart devices like smartphones, laptops, tablets, and others.
Increase in Mobile Advertisement to Create Robust Opportunities
An increase in mobile advertisement through mobile devices and the growing adoption of social platforms may create robust opportunities for market players in the forthcoming years.
Rise in Fraudulent Activities to Restrain Market Growth
An increase in fraudulent activities in different sectors may restrict market growth. A growing number of fraudulent activities are taking place in dating websites, matrimony websites, automotive, real-estate, and recruitment sectors. Such websites are repeatedly observing cyber breaches, gateway vulnerabilities, and payment frauds, which result in system manipulation eventually.
Random Redirections to Challenge Players
Random redirections and pop-ups on the web, which agitate viewers, may challenge market players in the forthcoming years by alleviating efficiency. Besides, technological barriers and a lack of customer loyalty may also have a negative impact on market growth.
The global online classified market has been segmented based on type, business model, and revenue source.
By revenue source, the online classified market is segmented into banner classified, search engine marketing (SEM), social media classified, mobile classified, and website classified.
By business model, the online classified market is segmented into vertical model and horizontal model.
By type, the online classified market is segmented into health classified, service classified, and product classified.
North America to Command Largest Share in the Market
By region, the global online classified market covers opportunities and recent trends across Europe, North America, the Asia Pacific (APAC), Middle East and Africa, and South America. Of these, North America is predicted to command the largest share in the market over the forecast period. An increasing number of internet users, quick adoption of innovative technologies for improving efficiency and performing daily activities, the budding industry of online analysts, social media managers, and videographers, presence of a large number of e-commerce companies, and huge investments to adopt new technologies like artificial intelligence and big data amid others for online classified ads are adding to the global online classified market growth in the region. The utmost market share is held by the United States as it is the hub of activities that is centered on online channeling.
Europe to Have Second-Largest Share in the Market
In Europe, the global online classified market is predicted to have the second-largest share over the forecast period. The surging number of internet users, quick adoption of innovative technologies to augment efficiency and day and day tasks, huge technological dependency, the huge growth of online marketing media platforms, countries like Norway and France witnessing rising popularity for horizontal classified model, increasing use of classified platforms by consumers to search second-hand merchandise across different categories, and Germany and the UK witnessing rising popularity for online classified ads with vertical business models are adding to the global online classified market growth in the region.
Asia Pacific to Have Fastest Growth in the Market
In the Asia Pacific region, the global online classified market is predicted to grow at the fastest pace over the forecast period. Huge investments in digital advertising, coupled with the rising number of businesses, are adding to the global online classified market growth in the region.
The global online classified market is fragmented with regards to competition, due to the presence of a couple of key industry players. In order to stay at the forefront and boost their profits, these companies have adopted different strategies such as partnerships, collaborations, and mergers and acquisitions.
Frequently Asked Questions (FAQ) :
North America was leading the online classified market in 2017, whereas Asia-Pacific is expected to be the fastest growing market in the online classified market with the highest CAGR.
Asia-Pacific is expected to be the fastest growing region in the market from 2018 to 2023 due to the increasing number of businesses and large investment in digital advertising.
Online classified advertisements or online classified ads, is a channel of online advertisement which is largely used across industry verticals to provide information and promote their products and/or services.
According to a report by the Australian Competition and Consumer Commission (ACCC) 2017, published in May 2018, the country witnessed 2,729 reported cases through classified scams which accounted USD 1,088.6 million and 3,763 cases of scams on dating sites accounting for USD 20,530.5 million of monetary losses.
The key players of global online classified market are Microsoft Corporation (US), Facebook (US), Claseek Pte. Ltd. (Singapore), Mitula Group (Spain), Mudah.my (US), Craigslist (US), Jualo (Malaysia), Syoknya (Malaysia), Singapore Press Holdings Ltd. Co. (Singapore), and Masig (Singapore).