The shift towards digital advertising has accelerated during the lockdown as companies seek cheaper alternatives to traditional marketing methods.
In a historic change, digital advertising on platforms like Facebook and Google is set to eclipse ad spending on traditional media by the end of this year. Not counting online ads sold by old media outlets such as news publishers or broadcasters, digital marketing is predicted to account for more than half the $530bn global advertising industry in 2020, according to GroupM, the media buying agency owned by WPP.
Ad spending on traditional media such as newspaper, television and outdoor advertising will fall by a massive 20.7% this year, whereas digital marketing is seeing an all time high
Although a first, this is a trend that began in the millennium with the advent of the internet. Since then, the web has transformed the ad market at an ever-increasing pace and scale, but it’s been the economic shock of the coronavirus pandemic that’s really accelerated the shift.
According to GroupM’s estimates, ad spending on traditional media such as newspaper, television and outdoor advertising will fall by a massive 20.7% this year, whereas digital marketing is seeing an all time high thanks to huge increases in people being online and a rise in online shopping during lockdown.
An important group driving this change is small businesses. Since lockdown began, companies have been looking for cost-saving online advertising methods that are more targeted towards purchases than promoting brands. Digital commerce is a huge industry, and it’s provided fresh opportunities for SMEs during this time, allowing them to sell directly and capture consumer data in a time of changing buyer behaviour.
With the rising cost of advertising expenses and changing consumer trends, digital marketing measurement and strategy is becoming a must for businesses.