Global ad spend will grow 11.2% in 2021, driven by exceptional demand for performance-based ecommerce advertising and online video branding, according to Zenith’s latest ad spend forecasts released today. Ad spend will total $ 669 billion this year, $ 40 billion more than what was invested before the pandemic in 2019.Ad spend growth is expected to remain strong over the medium term, with growth expected to be 6.9% by 2022 and 5.6% by 2023.

The coronavirus pandemic has accelerated structural change in the economy, from physical sales to e-commerce, leading more consumers than ever to try and shop online. Brands have responded by partnering with retailers and creating new direct-to-consumer operations, using performance-based advertising – primarily on social media and paid search – to guide consumers down the road to purchase. Zenith expects advertising on social media to expand 25% this year to reach $ 137 billion, surpassing paid search in scale for the first time. Paid search will increase by 19% to reach 135,000 million dollars.

Much of all this supposes new Argentina Email Address money for the advertising market, coming from small companies that have had to adapt quickly to e-commerce to survive the confinements, with budgets that the brands would have assigned to the retailers, previously, to ensure the physical space in their shelves, and now they are investing in display and search ads on retailers’ websites. The shift to e-commerce will slow as coronavirus restrictions are lifted and economies reopen, but it will not back down. Zenith believes that ecommerce will continue to generate progressive revenue in the advertising market, driving 13% growth in social media and 12% growth in search in 2022.

Audiences continue to migrate online and online video viewing is growing rapidly. Even as traditional TV viewership rates decline again, after a rare boom when lockdowns began in 2020. Advertisers value online video as a means of maintaining reach while TV loses, but it’s an effective way. brand communication in its own right. Demand is high, although the popularity of video on demand, funded through subscriptions, has helped limit the supply of high-quality online video available to advertisers. Zenith expects online video advertising to be the fastest growing digital channel in 2021, increasing by around 26% to $ 63 billion.

“The online video landscape continues to transform, driven by the growth of streaming services and connected television,” said Benoit Cacheux, Zenith’s Global Chief Digital Officer. “Its continued evolution requires a radical rethinking of how to build the optimal on-screen range-neutral model. Incorporating new data sources into TV planning also creates more opportunities to further synchronize TV and video planning.”

Social media and online video have eclipsed traditional static viewing, which is forecast to decline 15% this year, while online classifieds grow just 4%. Overall, Zenith expects digital advertising to grow 19% in 2021 and increase its share of total ad spend by 58%, up from 48% in 2019 and 54% in 2020.

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