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More and more companies allocate resources to digital advertising
The traditional media, such as the press, radio or television, are the most punished
The sector grows steadily, generating better digital strategies
The digital advertising sector will continue its recovery path, growing by 9 percent in 2022, according to Zenith estimates.; The latest investment forecasts predict a good environment for brands in promoting eCommerce, since it is expected that by 2023 advertising in this area will grow by 5.7 percent and in 2024 it will be 7.4 percent.
According to the analysis, despite the health crisis caused by Covid-19, international advertising investment is about to reach 705 billion dollars, to close 2021, compared to the 634 billion it obtained in 2019; however, funding could grow to $ 873 billion in 2024.
And it is that companies have injecting funds into digital more than in any other strategy, because they are the technologies, infrastructures, organizational changes and advertising within their web pages, what brands are looking for to promote e-commerce platforms and drive conversation traffic around their value propositions.
In accordance with Zenith, digital advertising was reinforced in the second half of this year, a fact that was demonstrated in figures with a high sense of estimation: 25 percent year-on-year growth in 2021, compared to the 19 percent estimated in July; 14 percent increase in ad spend by 2022, up from the previous estimate of 10 percent; and the most important, a rise of 9 percent in 2023 and 10 percent in 2024.
The new trend in ad spend
Although Zenith’s estimates foresee a digital transformation that it will not decline in investment or strategic impact, as the Covid-19 pandemic subsides in 2022 and in subsequent years, the industry will see ups and downs in various sectors.
The travel, hospitality and retail sectors, for example, will face a possible risk of regression; However, eCommerce and digital advertising will be able to boost them, thanks to the buying habits that now prefer to browse and later buy in person, or those who are buying online out of mere necessity.
In addition, Zenith anticipates that social networks will be the main channel, the axis of the industry itself, with a growth rate between 2021 and 2024 of 14.8 percent.
The hikes: 14 percent in online video; 9.8 percent annually on Paid Search, driven mainly by retailers; and OOH strategies with solid 7.4 percent annual growth as pedestrian and vehicle traffic returns to normal. In addition, radio and television will be much more punished, since it will only increase 2.2 percent and 1.4 percent respectively, as well as the written press, which will decrease 4.7 percent.
Contribution to the global economy
Advertising plays an important role in the economy, causing a rebound in the positioning of retailers, which can be effective in allowing brands to target active buyers at points of sale and, even more so, in their own eCommerce stores.
Zenith estimates say the retail sector grew from 24 percent in 2019 to 53 percent in 2020 and 47 percent in 2021, reaching a total of $ 77 billion. This equates to total ad spend in newspapers, magazines, radio, and film, or 20 percent of all ad spend in digital display and paid search.
Thus, in 2024 it is expected to reach figures in retailers of 143 billion dollars and 27 percent in display and search.
In this sense, the percentage of Gross Domestic Product (GDP) contributed by advertising at a global level also increased steadily, with an average between 0.72 and 0.75 percent, therefore, after the change in digital media consumption and eCommerce, it is estimated that the year will close with 0.77 percent and 0.8% of the contribution will be reached in 2024.
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