TMCnet News
New Study from StrategyR Highlights a $860.8 Billion Global Market for Digital Advertising and Marketing by 2026SAN FRANCISCO, May 31, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Digital Advertising and Marketing - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.
FACTS AT A GLANCE
Edition: 18; Released: May 2022 Complimentary Project Preview - This is an ongoing global program. Preview our research program before you make a purchase decision. We are offering a complimentary access to qualified executives driving strategy, business development, sales & marketing, and product management roles at featured companies. Previews provide deep insider access to business trends; competitive brands; domain expert profiles; and market data templates and much more. You may also build your own bespoke report using our MarketGlass™ Platform which offers thousands of data bytes without an obligation to purchase our report. Preview Registry ABSTRACT- Amid the COVID-19 crisis, the global market for Digital Advertising and Marketing estimated at US$530.9 Billion in the year 2022, is projected to reach a revised size of US$860.8 Billion by 2026, growing at a CAGR of 14.9% over the analysis period. Display, one of the segments analyzed in the report, is projected to grow at a 16.7% CAGR, while growth in the Search segment is readjusted to a revised 13.1% CAGR. The year 2020 has been a challenging year for global marketers as they have been struggling to keep up with the rapid changes occurring due to the COVID-19 pandemic. During the early days of pandemic, marketers across the world were impacted due to the declining ad revenues and budgets. Spending in the advertising industry is directly proportional to the global GDP growth. Due to the crisis, however, the ad spending of companies decline significantly. On an average, spending declined by 8-10% in Europe and by 15% in China. More than a quarter of media planners, buyers and brands paused their spending by the end of Q2 in 2020. With the stay-at-home restrictions due to COVID-19, cinema, out-of-home, and print advertising fell instantly; whereas in-home advertising rose. TV viewership, digital consumption, usage of streaming services, social platforms, and gaming have risen significantly. In response to this growth, advertisers prioritized digital advertisingas online environment is always favorable for direct response campaigns. Governments have assumed importance as ad buyers for promoting health messages amidst the COVID crisis. While traditional media formats have recorded substantial declines in spending levels due to the pandemic, buyers have shifted their advertising budgets away from linear TV, radio, print, and out of home (OOH) format towards digital platforms. Social media and paid search have accounted for a large share of the ad spending during this period, thus translating into significant growth for the digital advertising channels. For the year 2021, the advertising landscape for the traditional channels was affected by the resurgence of COVID-19 infections in several countries around the world. However, digital channels will continue to hold prominence for advertising companies as people remain confined to their homes in several countries affected by the pandemic, thus leading to greater consumption of digital and social media content. In Western Europe, ad spend in 2020 slumped, with digital media posting better performance than anticipated during the pandemic. The crisis caused a significant increase in digital media demand and supply. Many small organizations have been leveraging digital media to sustain their businesses in the face of lockdowns. Even in Eastern and Central Europe, ad spend in 2020 declined, but it was lesser than the anticipated rate. Investments in digital formats such as online video, social media, mobile, and desktop is expected to increase in the forthcoming years across Europe. While spend on linear or non-digital advertising is expected to revive, it however is not likely to reach the levels recorded before the pandemic. While in 2021 linear advertising budgets were supported by some televised events and revival in the economy, however digital mediums are expected to continue to be the main focus area. In China, digital ad revenue recorded gains led by rising investments in social media, e-commerce, and short video despite the decline in average media spend during the major part of the year. Digital gained importance among all marketers and will remain critical even in the forthcoming years. In 2020, performance media investments and social KOL (key opinion leaders) registered strong growth, as marketers increasingly concentrated on content to augment conversion and engagement via social commerce. Short video was a key growth driver due to the widespread use of platforms such as Bilibili, Kuaishou, and Douyin. In 2020, short video outpaced e-commerce in terms of digital ad revenue. OOH is also expected to remain strong. Marketers are likely to opt for targeted video on digital rather than conventional TV commercials. The COVID-19 pandemic resulted in people staying at home and/or working remotely from home, resulting in huge increase in online traffic. The large increases in online traffic provide opportunities for companies to keep their target audience engaged through digital marketing initiatives. While overall digital marketing spending declined due the pandemic-induced cuts in marketing and advertising budgets during the lockdown, available budgets have been allocated to digital marketing initiatives. In addition, advertisers are realizing higher returns on their investments owing to lower competition for advertising space. As a result, the pandemic is driving changes to digital marketing strategies at companies, especially at companies where digital marketing initiatives had relatively low priority. Clicks and display ads are among the most prominent forms of digital marketing initiatives. Clicks are expensive compared to display ads, as clicks ensure the customer is directed to the advertiser's website. However, clicks provide a better return on investment. The declines in digital marketing budgets across the spectrum resulted in lower costs per click. As a result, marketers are gaining more clicks for the same cost. Proactive advertisers with long-term outlook are utilizing the lower costs of clicks to improve their marketing plans and stand to gain the most when conditions improve. The continued spending on digital marketing initiatives would ensure that such advertisers have a high recall for their products or services when the conditions improve. In addition, the lower costs of digital marketing, as well as the unfavorable circumstances for other marketing and advertising formats is resulting in advertisers exploring and/or increasing their marketing spends on digital marketing. Digital events are the need of the hour owing to the pandemic crisis. With scope and capabilities for improvement, the number of digital events happening is witnessing growth. Businesses are witnessing immense scope and opportunity for interactive and engaging digital events since most of the physical events stand cancelled owing to the COVID-19 crisis. Digital events are increasingly becoming multi-dimensional owing to things such as greeter videos, breakout sessions, keynotes, panel discussions, open Q&A, Social and gamification, as well as even swag and giveaways. The Netflix model is considered a good example for developing personalized content experiences; however, experiences that are smaller and more personalized, being targeted at few specific individuals, are likely to be witnessed. Content hubs showcase featured content and related content together, all organized on-demand, along with some CTAs that enable visitors in self-selecting their options. Personalized landing pages comprise loads of organized and relevant content that focuses on a specific use case, account, or industry. All interactions could be tracked; while multiple CTAs enable visitors in selecting their options for navigating. The outbreak has encouraged businesses in exploiting digital opportunities and rethinking strategies to adapt towards the transition. Marketing agencies could focus on convincing businesses to use more of digital sphere until normalcy returns and the pandemic crisis passes away. Marketers are likely to develop promotion strategies for encouraging businesses to select new, online efforts. The efforts are likely to enable in finding new clients, and striking new deals. More MarketGlass™ Platform Our platform is free for qualified executives and is accessible from our website www.StrategyR.com or via our just released mobile application on iOS or Android About Global Industry Analysts, Inc. & StrategyR™ CONTACTS: LINKS Connect With Us on LinkedIn Follow Us on Twitter Journalists & Media
SOURCE Global Industry Analysts, Inc. 
|
View original content to download multimedia: