change in advertising landscape

How Advertising Landscape has Changed Rapidly?

Marketing Deep Dive Published on 04 Feb 2021

The advertising landscape has changed rapidly over the past three decades. With the exponential increase in the use of digital technology, it is not surprising that digital channels account for more than half of the total ad spend.

Social media, video, e-commerce, and search has mushroomed over the past 10 years at the expense of conventional channels such as TV and print media.

There is a sharp decline in TV ad spend over recent years which is due to the increase in social media and online ad consumption.

According to Statista, global advertising spend for television has decreased from $201B in 2010 to $160B in 2020 and the same for newspapers has decreased from $97B in 2010 to $31B in 2020.

The rise in consumption of video content on YouTube and OTD platforms has shifted the attention of marketing agencies. Newspaper and magazine ad spends have also plummeted to unprecedented levels.

And then came the Corona pandemic which acted as a catalyst in the marketing industry.

Although there is a metric rise in search ad spend in recent years, there is a massive shift in the trend of online content consumption which has doubled since the start of the pandemic which is likely to fuel its growth in the coming years.

With the rise in daily smartphone users, more netizens added every day, and stay at home culture forced by the pandemic, there is a huge rise in online content consumption and social media activities.

More people are actively and attentively participating in online platforms which have increased in time spent on screen and time spent on consuming TV and digital video.

This can be seen from the Statista study where the global digital advertising spends for display ads has increased from $27B in 2010 to $152B in 2020 and expected to rise in the future.

advertising expenditure

The digital future is now

It’s clear that priorities are realigned and budgets have shifted, with digital channels now accounting for more than half of total advertising spend.

It is not only the advertisers spending money online but consumers are also expected to be spent online as a result of the 2020 pandemic. It is expected that more than $183 billion will be spent online by consumers due to the COVID pandemic.

Screen time is ad money

People are spending many of their waking hours in front of a screen. Globally, the daily average of time spent online was almost 7 hours during the pandemic, which was significantly more (almost double) from 3.2 hours at the beginning of lockdowns.

This change in lifestyle demands new marketing strategies and budgeting priorities by advertising agencies to increase interaction touchpoints with the consumers.

From the Big screen to Small

Social media and digital ad spend are also consistent with a steady rise in global smartphone ownership and usage. It is estimated by Statista that there will be 1.13 billion smartphone users in China by 2025 which will be nearly 14% of the world’s population by 2025.

Also, 81% of U.S. residents owned a smartphone in February of 2019 and it is expected that 291 million Americans (increasing to almost 90%) will be using a smartphone by 2024.

As billions of users spend hundreds of their waking hours with their small screens every year, it’s important for mobile-based ads to spend—including apps like TikTok, Snapchat, Instagram—to become even more mainstream. 



Related Post

Artificial Intelligence Marketing Artificial Intelligence in Marketing - An Uprising Trend

Brands incorporate AI in their business and marketing strate...

Published On:04 Jan 2021
Read
Video Marketing Strategy Video Marketing – A Battleground for Consumer's Attention

With growing video consumption by customers, it is important...

Published On:10 Dec 2020
Read
Brand Storytelling Brand Storytelling - How it Helps to Build a Brand?

Personal brand storytelling connects to emotional psychology...

Published On:16 Nov 2020
Read
A/B testing on social media A/B Testing On Social Media

Read this article to understand how A/B testing helps in bui...

Published On:10 Sep 2020
Read
Ecommerce website development Top E-Commerce Website Trends to Follow in 2020

Learn the amazing E-commerce website development trends of 2...

Published On:14 Oct 2020
Read
content marketing strategy Shifting Your Brand's Content Strategy During COVID-19

With covid-19 crises, learn to shift your content marketing...

Published On:25 Aug 2020
Read
facebook ban Facebook Ban: A Societal Challenge for The Social Media Giant

Read this article to know why brands have decided not to adv...

Published On:10 Aug 2020
Read
audio or video Audio or Video: Who is the King in MENA?

There are two major ways one can consume content either audi...

Published On:10 Aug 2020
Read
omnichannel adoption Covid-19 & The Rise of the Omnichannel Adoption

With rise in Covid-19, people are taking up alternatives to...

Published On:10 Aug 2020
Read
data driven marketing Data Driven Marketing - 7 Things you Should Know

Data-driven marketing helps in understanding your audience a...

Published On:01 Nov 2020
Read