Global Ad Spending

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New reports by the WARC – World Advertising Research Center – shows some new numbers for the state of global ad spending.

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 global a 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?

Consolidation

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

Video Transcript: Global Ad Spending

Hello and welcome to episode number 50 of The Great Reset. My name is Robert Brill. I'm the CEO of BrillMedia.co.

We're an advertising firm and we help companies grow and scale with addressable business outcomes using paid media, digital data, programmatic, even some digital out of home. So we're here five days a week talking about marketing and advertising for business owners, senior marketing executives and entrepreneurs. If you want long-form stories of how businesses grow and scale, we post here and on podcasting for Apple and Google Play for the LA Business Podcast.

So today we're talking about new report and new data from the WARC, the World Advertising Research Center, which shows some new numbers for the state of digital advertising and here are the highlights. The good news is that digital media continues to increase with social media ad spending up 9.8% from this time last year. Online videos are 5%, display advertising is up 2% and search is up 0.9%.

Let's take a note here. Display advertising is the use of banners and native advertising the way they break this out. Not surprisingly, TV, radio, newspapers, magazines and out of home are all down ranging from 10 to 21%.

That is definitely not good. In a quote from the website, visualcapitalist.com, Dr. Daniel Knapp of the Interactive Advertising Bureau Europe says, midterm, this era will be associated with an accelerant of latent and incremental trends towards digital consumption, commerce and thus advertising.

So not all is lost. U.S. Political advertising in the U.S.

Will buoy some of the spend and the projected global value of advertising in 2020 is expected to be $563 billion, which is an 8.1% lower prediction than earlier estimates, which represents $50 billion loss in advertising spend worldwide or less advertising spend. So tomorrow we'll talk about U.S. Ad spending data from eMarketer.

Let's talk about the implications now of advertising and marketing business based on these new numbers. Number one, consolidation. 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 out Factual, both really fantastic data and location companies. Old time competitors will partner together and become stronger in the face of massive and unprecedented change. Don't we hate that word unprecedented?

Everyone's using it. In April, NBC Universal's business unit Fandango bought streaming video platform Voodoo from Walmart, another example of opportunities in the marketplace. Number two, digital media continues to reign.

As marketing dollars have to do more with less in 2020, we're seeing an accelerated shift towards addressable media. It's not surprising to me that social media ad spending is growing. I mean, Facebook is the easiest platform for an advertiser to access.

Literally, my mother can go and start buying ads on Facebook. Just log in and start buying ads. I'm sure there are many small businesses that are experimenting with Facebook for the first time in 2020.

And finally, number three, push to innovation. So when I say innovation, I think about new products, new services, or new ways of doing business. 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 that really weren't accessible to small businesses. If lead generation is the goal, begin with our $497 marketing diagnostic. We interview you about your marketing, economics, and clients and map the strategy that makes your firm the inevitable choice. The core idea of how we're innovating is to make functionality work that is really only accessible to the largest business and make them available to small businesses.

So it's really about all the things that a small business or a marketer or an advertiser needs to make a business work. Strategy, email, marketing, social media posts, creative, designed to convert, and fundamentally paid media. We do all of that at a very, very low monthly cost that small businesses can afford, that can still make an impact, and that can be a viable business solution for our organization.

Another example of innovation in the marketplace is a push to self-service, development, creative, ad buying. So companies including autocaddo.com and BannerSnack make it really easy for companies to create banner ads with the ease of creating Facebook ads and then to buy them. Even though from our experience, the costs are higher and the ad buying has relatively limited functionality.

So the core idea here is there's a lot of, I'm still confident that there's a lot of opportunity in the marketplace, but ad spending is down and we're going to continue to monitor the ad spending situation for the rest of the year. All right, that's it for today. Come back tomorrow for more news, marketing, data, and insight on marketing advertising.

Talk to you soon.