Most important points:
- The global online job market will grow 16% by 2022 to $36.1 billion. Impressively, the market has grown at a compound annual growth rate of 15% since SIA began sizing the industry in 2015, growing at 164% over the 8-year period.
- The lion’s share of the online job ads market share consists of three segments: job aggregators, social media job boards, and job boards. Together, the three account for 93% of the total market.
- Growth rates varied significantly by business model in 2022. Of the three primary segments, surprisingly, the traditional job board model outperformed the market with 23% year-over-year growth.
- The 50 largest companies together accounted for 80% of the world market.
- A tight labor market and rising inflation have contributed to skyrocketing costs for performance-based plans in recent years. In the US, cost-per-click (CPC) peaked last December, but a cooling economy in 2023 has led to moderating pricing trends, with the reversal being more pronounced in cost-per-application (CPA). Conversion rate trends, the ratio between the number of applicants and click volume, can help explain the divergence in trajectories.
- Big Tech can continue to disrupt the competitive balance of online job opportunities, as Microsoft did when it hit the $26.2 billion market in 2016. Alphabet, Google’s parent company, recently made waves in March this year when it tested sponsored job postings within its Google for Jobs service.
- Directly correlated with hiring trends, online job advertising can be highly cyclical. The current global economic slowdown is translating into stalled or shrinking hiring budgets in a growing number of regions, industry sectors and occupational categories. This has resulted in a spate of recent layoffs from online job boards.
- An engaging mobile experience has grown in strategic importance. By 2022, more than two-thirds of clicks and applications will come from a mobile device. Vendors with a well-designed mobile strategy can gain a competitive advantage. Further, mobile-native carriers, those who initially launched as a mobile app, may not have the same technical debt as those with a web browser-based start looking to catch up with an app.
- As artificial intelligence quickly becomes mainstream, use cases are rapidly expanding in the talent acquisition technology ecosystem.
- “Wage transparency” laws require employers to post or provide a salary range on request for open positions, whether advertised to candidates or existing employees. The rise of remote work means that many recruiting organizations that are not based in areas with pay transparency laws, It is important that job boards are required to comply with various pay transparency laws.
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Online Job Advertising Market Update_20230512 – You do not have permission to view this item.
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