The global advertising market has recovered, in the second quarter, more quickly than expected from the severe drop caused by the Coronavirus pandemic and, now, it is expected to decline by around 7.5%, reaching, as a whole, $ 587 billion in 2020, according to Zenith’s latest ad spend forecast, released Monday. This is a considerable improvement on Zenith’s forecast, given that last July the forecast was for a 9.1% drop.Zenith expects global ad spend to grow 5.6% in 2021, reaching $ 620 billion. This growth is due to the favorable comparison with 2020-lower-, as well as the delay of the Summer Olympics and the UEFA Euro football championship. Despite this increase, investment will remain below the 634,000 million dollars invested in 2019. In 2022, advertising investment will grow by 5.2% to reach 652,000 million dollars, surpassing 2019 by 18,000 million dollars. . Even so, it will be about $ 70 billion less than the advertising investment would have reached if it had remained in its pre-pandemic line.These forecasts assume that the global economy will begin a sustained recovery as COVID-19 vaccines are introduced in 2021, and are subject to great uncertainty about how fast this recovery will be.Digital transformation is rapidly migrating investment to digital advertisingZenith expects global digital ad spend to grow 1.4% in 2020 and will also increase its share of total ad spend to 52%, up from 48% in 2019. The pandemic has forced brands to accelerate their transformation digital, as ecommerce has proven to be a vital tool for maintaining relationships with existing customers, mitigating lost store sales, and even finding new customers. Euromonitor International forecasts that ecommerce sales will increase 25% this year, while in-store sales will fall 5%.
Brands have increased their investment in digital media to promote and drive traffic to their own ecommerce platforms and retailers, their distribution partners. Search and social media, with an increase of 8% and 14% respectively, Ecommerce growth is not expected to reverse once the world begins to recover from the coronavirus pandemic. Now that brands have proven the value of digital transformation under pressure, they are likely to continue with enthusiasm, devoting even more of their budgets to digital advertising. Zenith predicts that digital advertising will account for 58% of global ad spend in 2023.Connected TV advertising is offsetting the rise in SVODConsumers’ viewing habits have been evolving for years, but in 2020 we saw real change as online video platforms benefited from a long-term boost in perception and demand.
Forced to spend much more Portugal Email List time at home, consumers flocked to existing SVOD platforms like Netflix, which added 25 million new subscribers in the first half of the year, and new ones like Disney +, which achieved its growth target of five. years in just nine months.It is important to note for advertisers, who are excluded from SVOD platforms, that the demand for Ad-funded Video On Demand (AVOD) has been even higher,especially on connected televisions. Between January and April 2020, the reach of SVOD services on connected television in the US increased by 5%, but the reach of AVOD services increased by 9%, reaching 58.5 million households, or 48 % of total 1.AVOD combines the premium viewing environment of television with the segmentation capabilities of digital advertising based on data.
It offers high levels of ad recall and a strong reach among young audiences that is hard to find on traditional television. As it continues to grow over the next few years, it will offset audience loss to SVOD and help drive 8.4% average annual growth in online video ad spend between 2020 and 2023.”Now that it offers massive reach in key markets, the time is right for brands to invest in connected TV,” said Christian Lee, Zenith Global Managing Director. “Brands must use connected television for both branding and performance, taking advantage of its high ad recall and full segmentation and traceability capabilities to generate brand recognition and sales conversion at the same time.”
E l average retailer is diverting trade advertising budgets towards The rise of eCommerce this year has fueled rapid growth in demand for retailer media – display or search ads that appear on retailer platforms and direct users to products available for purchase on the spot. This is a well established channel in China but it is relatively new elsewhere. By promoting products at the point of purchase, it acts more like a storefront than traditional above-the-line advertising and is commonly paid by brands from commercial budgets set aside to negotiate with retailers, rather than budgets. of marketing. So you can grow without cannibalizing your existing ad spend. Amazon is the leading provider of media retailer outside of China and its revenue grew more than