New reports by the WARC – World Advertising Research Center – shows some new numbers for the state of digital advertising.
Here are the highlights worldwide.
The good news is that digital media growth continues to increase, with social media ad spending up 9 points, 8% from this time last year. Online video is up 5%, display up 2% and search is up point 9%.
Not surprisingly TV, radio, newspapers, magazines, and out of home are all down, ranging from 10% to 21%.
In a quote from the website VisualCapitalist.com, Dr. Daniel Knapp, of the Interactive Advertising Bureau Europe says, quote “Mid-term, this era will be associated with an accelerant of latent and incremental trends towards more digital consumption, commerce, and thus advertising.”
US political advertising in the US will buoy some of the spend, and the projected global value of advertising in 2020 is expected to be 563 billion dollars, representing an 8 point 1% lower prediction that earlier estimates, or a 50 billion dollar lower ad spend worldwide.
So, what does this mean for advertisers and the marketing business?
With the change in ad spending I expect to see buyouts, mergers, and partnerships at all levels. We’ve seen this already, earlier this year, with Foursquare buying Factual. Old time competitors will partner together to become stronger in the face of massive change. In April NBC Universal’s business unit Fandango bought streaming video platform Vudu from Walmart.
- Digital media continues to reign
As marketing dollars have to do more in 2020 we’re seeing an acellerated shift towards addressable media. It’s not surprising to me that social media ad spending is growing. Facebook is the easiest platform for an advertiser to access. Just login and start buying ads. I’m sure there are many small businesses that are experimenting with Facebook for the first time in 2020.
- Push to innovation
One example is our company, as we’re creating opportunities for small businesses to access some of the best tools, data, automation, and marketing outcomes. If you want to see more about how we’re doing this check out our Spot On Marketing package. The core idea is that to make business work an advertiser needs a strategy, email marketing, social media posts, creative designed to convert, and paid media. We do all of that for a very low overall monthly cost.
Another example of innovation in the marketing space is a push to self service ad buying. Companies including Adacado.com and Bannersnack.com make it easy for companies to create banner ads with the ease of creating Facebook ads, and then to buy them, albeit with higher overall media costs and very limited ad buying functionality