Statistics have shown that advertising is rapidly changing, and marketers must understand these trends and how they affect the profitability of a company, or they will be left out.
With traditional ad methods being overtaken by digital ad spending and the world experiencing a global market shift due to the COVID 19 pandemic, businesses are beginning to create their brands to reach more digital audience, and sometimes, less traditional options.
Other than the shift from traditional advertising to digital advertising, digital advertising itself is experiencing massive creativity by companies and entrepreneurs who have grown from displaying banner ads in the early 2000s to mobile in-app advertising, videos, and social media ads.
In this guide, I will be exploring 7 stats that show how advertising is changing and how you can position your business to remain profitable in this new era of the digital trend.
1. Money spent on digital ad is set to overtake traditional advertising in 2020
Traditional ads used to be the trend, but that was a long time ago. Traditional ads may never end—as companies will always explore different ways to get their brands heard; however, digital ad has been recording incredible growth since the early 2000s, and it is expected to surpass traditional ad in 2020.
What does this mean for your brand? It depends on your brand and your target audience. While more people will be spending money on digital ads, your business may be targeted to an audience who can be accessed easily through traditional ads.
How do I structure my brand in light of the aforementioned information? One of the best business strategies is to study the best brand within your industry and niche.
Who are they talking to? What advert channels are they optimizing? Who are they trying to communicate to? When you understand the direction of your competition, you can strategically get to the audience before your competition.
2. Traditional ad spend in the United Kingdom had 48% in the Second Quarter.
The United Kingdom recorded a drop in spending on traditional advertising between March 23rd 2020 and June 30th, 2020. Mostly, the decline was caused by the coronavirus pandemic that hit the world in January 2020.
While things are expected to pick up as the pandemic slowly fades, there is a high chance that things may never be as it used to and the world will record a boost in spending on digital ads than traditional ads throughout the 2020s.
3. Mobile advertising to be worth $408.58 billion by 2026
Mobile advertising is growing extensively, and while traditional advertising may have suffered a drop during the pandemic, mobile ads have remained stable. According to Business Insights, global mobile advertising market is expected to reach $408.58 billion in 2026.
What does this mean for my business or brands? Many people are getting comfortable performing tasks on their phones. While social media is the primary mobile attraction, industries like finance, debt, agriculture, shipping, and more give more reasons to make people stay longer on their phones.
4. Social Media Overtook Print as the third-largest advertising channel in 2019.
Zenith Media, in a study revealed that social media would overtake print media as the third-largest ads channel in the world in 2019. At the end of the year, Print media recorded a 6% fall in ads spending while social media ads spending rose to 13% of the total global ad spending.
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5. Growth in Podcasts
Podcasts are not left alone in the digital trend. Although the growth of podcasts as ads medium may not be as explosive as social media, the growth is steady, and marketers are beginning to realize that they can reach an even wider audience if podcasts is added to their ad strategy.
6. In-app advertising to grow by 278% between 2020 and 2027
Google PlayStore gave many app builders a free platform to exhibit their apps for download. The company made things even more profitable for app makers by allowing in-app advertising and purchases.
Today, a forecast by Global Industry Analysts, Inc says that the global in-app market is estimated to grow to about 278% in the next seven years.
7. Digital Ads Spend on Local U.S. Radio Witnessed Growth form $286 billion to about a trillion dollars.
Digital ad spending accounts for 10% of advertising revenue on local U.S. radio. In 2010, digital ads spent only over two hundred million dollars on local U.S. radio; however, the spend increased to over a trillion-dollar in 2019.
Times are changing, and more companies are willing to spend a lot more money on digital ads. With these changes in trends, you may ask: ‘How do I survive in a market that seems to be ever-changing?’
Understand the trend and what it means for your business. Understand the market and how a change in trend may affect your business.