Shopping habits are changing due to a virus that has run rampant across the globe. Companies invest in eCommerce & social media platforms and retailer media advertising rather than traditional advertising. Like, in television commercials, where businesses market-specific products directly within these platforms.
As per a recent Zenith forecast report, global advertising expenditures will climb 9.1% in 2021 after hitting $634 billion in 2019. It’s also projected to jump 15.6% in 2021 to $705 billion.
Social media Ads Overtakes TV advertising: Zenith Report
According to Zenith Advertising, from 2020 to 2024, social media will expand at the fastest rate of 14.8% (on average). An online video followed this at a 14% rate of assumption. Zenith said in a report that they predict social media ad spend will reach US$177 billion by 2022 and overtake television TV Advertising at US$174 billion.
New research shows that starting in 2016, the platforms will rake in more ad spends than magazines or newspapers. According to the Zenith report, Forecasts reveal an impressive 20% rise in social media ad expenditure this year.
Global Adspend report
Overall, Adspend is forecasted to grow by 4.4% on average between 2018-2022 but will remain stable at 4.3% in 2020 and 4.4% in 2021.
In 2022, digital advertising will surpass 60% of overall ad spend for the first time and will keep growing from there, hitting 65.1% by 2024. This may be because digital ads are comparatively cheaper than other forms of advertising like print.
Digital advertising will continue to be the largest revenue generator for online businesses and the industry.
According to the Zenith report, social media advertising can assist companies in increasing revenues. How? By identifying consumers who seem curious about their products and services and capitalizing on that interest. First-party data lets them reach out to these individuals directly via social media channels – with automated tools optimized for achieving key business objectives. These actions give companies more control over their brand message, resulting in higher conversion rates across campaigns.