How covid-19 impacted Social media ad spend forecast globally

Marketing tactics have transformed along with the change in customers’ content sources. With the emergence of the internet, radio advertising gave rise to TV advertising, which gradually steered briskly towards the digital space.

Digital marketing encourages small or giant businesses to engage with their audience online and taps their audience globally or locally. Although Television is one of the major advertising platforms for many enterprises, social media marketing is recently gaining momentum and soon surpassing TV advertising budgets.
(information source: https://www.hollywoodreporter.com/business/business-news/advertising-market-recovery-covid-social-media-overtake-tv-1235055453/)

Keeping the social media bandwagon running, this year the hiring market for this industry looks positive for new budding social media enthusiasts as well as for veteran experts.

Pre Covid-19

Before the COVID-19 pandemic outbreak, Internet Marketers forecasted that social media or search ad spending would rise by 14.4% in 2020. In fact, they recommended that there would be a steady rise in search ad spending till 2024.
(information source: https://influencermarketinghub.com/coronavirus-marketing-ad-spend-report/)

During Covid-19

During the covid-19 outbreak, there was a global slowdown impacting online shopping and retail shopping massively. Hence, the ad spends were not even close to the predicted amounts. The sector that got hit the most was the travel industry, forcing many small as well as giant travel agencies to shut their doors. Due to work-from-home and lockdown rules, people were unable to venture outdoors and hence many organizations had to take a digital leap overnight to sustain their business.

Online search and shopping became a norm and hence industry experts predicted a 5.9% growth in online ad spending in order to reach each and every household. Sooner they realized that the pandemic will become a new way of living and now the new forecast for search could exceed their pre-pandemic expectations for 2022 to 2024. They now expect online advertisers to spend $99.22 billion on search in 2024, which is a massive hike compared to the earlier prediction of $91.32 billion.
(information source: https://influencermarketinghub.com/coronavirus-marketing-ad-spend-report/)

Post Covid-19

Global ad spend across Facebook and Instagram has been soaring in the wake of the pandemic. According to Emplifi’s State of Social Media and CX Q3 2021, a report study indicates that combined spending on these platforms grew by 43% year-on-year during Q3 2021, matching the peak seen in 2020’s golden quarter.

Additionally, the analysis also brings to the limelight that if this trend continues, marketers will likely spend record amounts during the fourth quarter of this year, a three-month period that historically sees the highest investment in social advertising.
(information source: https://econsultancy.com/stats-roundup-how-social-media-marketing-has-changed-after-covid-19/)

Most MNC’s due to the pandemic saved on operational expenses and hence leveraged this opportunity to fuel their online advertising budgets. This opened up global doors for many and displayed the magnificent charms of online marketing and business growth. 

Talking about MSMEs in India, they comprise of around 95% of the economy today. During the covid-19 crisis, these small enterprises lacked technical confidence allowing the best digital marketing agencies in India to serve these businesses during critical times.

IN A NUTSHELL:

Although developments in social media, market upheavals, over-hype, and a drop in ad spending, digital marketing, and advertising will soar higher and higher with time and competition. Digital marketing is an essential component of global marketing, involving innovation and robust processes to maintain your brand value and services around the clock.

With our personalized digital advertising solutions for small as well as large enterprises, iDigitize Infotech LLP helps you get recognized and drives business growth.