The course of the Pandemic took down many sectors. The advertising industry was one of them. Though it was harsh at first the ad industry has come up rejuvenated with new mediums of advertising
According to Zenith’s latest ‘Advertising Expenditure Forecasts report, the exceptional demand for performance-led brand advertising and e-commerce advertising will boost the global advertising expenditure by11.2% in 2021.
2022 will see a growth of 6.9% and 5.6% in 2023 according to the forecast of the advertising expenditure which is robust so far. Structural shift in the world economy from bricks-and-mortar sales to e-commerce was accelerated by the COVID-19 Pandemic which led the consumers to drive more towards researching for products and complete their buying online.
Brands in turn responded by partnering with the retailers and creating new direct-to-customer operations, using performance-based advertising, on social media primarily and paid searches. Social media advertising might expand by 25% this year to reach a target of $130 billion as forecasted by Zenith, which will overtake paid searches on this scale for the first time. Paid searches will be expanding by 19% to reach $135 billion.
The traditional ratings for television shrank again after a big spike started when the lockdowns began in 2020 during the pandemic. The audiences have again migrated online, and online video viewing is growing rapidly. Advertisers now value online videos more than television advertising as a more convenient means of maintaining reach.
There is no denying that television is an effective form of brand communication in its own right. There is a strong demand, although subscription-based video-on-demand’s popularity has helped in limiting the supply of high-quality video online available to the advertisers. Online video advertising will become the fastest-growing digital media in 2021, as predicted by Zenith, and the growth rising by 26% to reach $63 billion.
“The growth of streaming services and connected TVs has fuelled the transformation of the online video landscape,” said Benoid Cacheux, Global Chief Digital Officer at Zenith. There is a further discussion for syncing TV with video for creating further opportunities. Traditional static displays have been eclipsed by Social media and online media.
This year saw a rapid recovery in adspend, which was coupled with the migration of audience traditional to digital channels, fuelling a substantial increase in media prices, particularly on television.