As technology advances and the tools in the industry diversify and expand, the importance of digital advertising and marketing for brands becomes more and more evident.
The companies behind these brands are increasingly recognizing the need to invest in digital campaigns to remain competitive in an ever-changing marketplace.
The coronavirus pandemic accelerated this need, since traditional marketing strategies were no longer effective in a context like the one experienced in 2020.
Many companies have had to shift their focus from their traditional advertising strategies to digital marketing to stay afloat during the pandemic, and then continue to adapt to changing times.
A good way to see the progress of digital advertising comes from a report from Statista It reflected that in 2021 digital advertising was going to grow 8.4 percent compared to the previous year, even with a 6.5 percent decrease in investment in traditional advertising.
This shift towards digital marketing can be seen in the success of some of the world’s biggest brands.
For example, Amazon has seen a significant increase in its investment in digital advertising in recent years. As a result: their online sales multiplied at rates of more than 30 percent (data from 2020).
Investment in digital advertising will grow in 2023, but less
The latest data regarding investment in digital advertising corresponds to the specialist consultancy Warc, which estimates that spending will be located at 523 billion dollars in 2023.
That volume of investment in advertising It represents an increase of 5.5 percent compared to 2022, a lower rate than that registered in the previous year.
The lower growth is due, in part, to the fact that the increase in 2021 was skewed by the covid pandemic, which left a low floor in 2020.
The Warc report says that in a context hit by great uncertainty about what can happen to the world economy only one in four marketers understand that their digital investments will grow by 2023.
The report corresponds to the “Future of Media”, which is part of the investigation “The Marketer’s Toolkit”.
The study analyzes the trends that are going to define the marketing and advertising industry in 2023 based on more than 1,600 global surveys carried out with professionals in the sector and interviews with top leaders in the marketing areas of agencies and multinationals.
Warc speaks of an increase of 5.5 percent for internet advertising (social networks, displaye-commerce, search, online classifieds) this year, a rate significantly lower than the 42 percent registered in 2021.
According to the study, 68 percent of professionals surveyed by Warc estimate they will increase their spending on online video advertising by 2023. The same forecast, last year, was 80 percent.
The fastest growing channel will be retail, says the study, based on the development of digital systems in giants such as Amazon, Walmart and Kroger.
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