Zenith expects telecom ad spend to grow an average 4.5% annually through 2023, thus recovering from the 8.7% drop in 2020, according to Zenith’s Business Intelligence – Telecommunications report released today. Telcos’ ad spend in the 12 key markets included in the report * will increase from $ 17.8 billion, in 2020, to $ 18.7 billion, in 2021, and will subsequently return to the pre-pandemic level, that is, to $ 19.5 billion in 2022.Smartphone sales will start to rebound this year, once consumers feel more confident about their future. Consumers are increasingly willing to finance and buy terminals, regardless of their network providers, giving manufacturers and retailers a greater incentive to advertise terminals themselves. Meanwhile, telcos will seek to recoup their investment with 5G licenses and infrastructure through new services and higher cost data packages.

All of these trends will help drive healthy growth in telecommunications Georgia Email List advertising activity over the next three years. Zenith expects telecom ad spend to grow 4.7% in 2021, 4.4% in 2022 and 4.3% in 2023.Digital platforms help telcos demonstrate their relevance to the most demanding consumersVoice and data services are standardized and, operationally speaking, nearly identical for consumers who expect them to run smoothly and only pay attention to them when they fail. High-impact advertising in mass-audience media, such as television and radio, allows telecommunications companies to differentiate themselves from others through branding and makes them more relevant to customers.consumers promoting their identification with topics of interest such as leisure, sports and music.

Therefore, telcos will invest substantially more in television and radio advertising than the market average: in 2020 they invested 42% of their budgets in television and radio, while the market average invested 30%.However, as audiences migrate online, telcos are refocusing on communicating their brand purpose to massive digital audiences. Advertisers in the telecommunications sector spend less in digital media than the average (49% of their budgets went to digital channels in 2020, compared with 56% of average advertisers in general), but digital advertising is also the only medium in which telcos are increasing their advertising spend. Zenith expects telecommunications companies to increase their digital ad spend by an average of 5% annually between 2019 and 2023. By 2023, digital advertising will account for 54% of all advertising activity in the telecommunications industry.”COVID-19 has shown how dependent we are on good, fast and reliable internet connections. Telecommunications companies have been the forgotten heroes of the pandemic, completely changing our lives online and keeping us connected with leisure, work and trade, “said Ben Lukawski, Global Zenith Chief Strategy Officer.

“Their challenge is to go from being forgotten to being recognized and appreciated for their efforts. The spread of 5G and the reality of our new virtual lives give telecommunications companies the opportunity to become the center of attention.”Telcos are reducing their ad spend on traditional television and radio as their reach dwindles, but not as rapidly as advertisers in most other categories. Zenith expects telecommunications companies to reduce their TV ad spend by an average of 2% per year between 2019 and 2023, compared to a 3.5% decline per year for all categories. They will also decrease their radio ad spend by around 2.8% per year, compared to 4.1% per year for the market as a whole.I ndia and Russia will lead growth in advertising investment in telecommunicationsZenith expects India to be the fastest growing advertising market for telcos between 2020 and 2023 by some distance, with annual growth of 11%. According to eMarketer, only 31% of the population currently owns a smartphone, but thanks to the launch of low-cost phones, such as the JioPhone, this percentage is growing rapidly.

Russia is another market with a relatively low share (57%) but smartphone purchases are growing rapidly and ad spend in the telecommunications sector is expected to grow here as well, at over 8% per annum.Most of the other markets covered in this report are expected to grow between 3% and 6% annually through 2023. The exception will be France, not because of an inherent weakness in demand but, unlike most markets, the French telecommunications companies have already increased their investment in 2020 – by 6% – in response to the additional demand for data. Therefore, the comparison with 2023 will be considerably more difficult.In Spain the recovery will be somewhat slower than at the global level, since, despite forecasting increases of the order of 11% in 2021 or 6% in 2022, the decrease in 2020 was significant. It will be the digital medium that will push investments the most, it

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