IMF Business School · Masters in Marketing and Digital Communication Become a professional with the best school to study digital marketing in person or online IMF Business School · Masters in Marketing and Digital Communication Become a professional with the best school to study digital marketing in person or online 2020 is a year of lost advertising budgets. Macau Email Lists Large sporting events that tend to increase advertising investment, such as the Olympic Games, were canceled to prevent the spread of the coronavirus. The decline in ad spend was not just limited to what lost sporting events could create, it went much further. The advance of the health crisis led consumers to spend less and save more and companies to take much more austere and conservative positions on how and where (and how much) to invest advertising money.
Some companies directly chose to pause their ad spend. Although the situation is being quite general and the problems are for all companies, it is true that not all of this context is affecting them equally. For some companies the reality is somewhat less negative than it is for companies in other sectors. In fact, digital advertising has not been as affected by the situation as other advertising formats and the fall in investment by the end of the year will not be as dramatic as that recorded in traditional media. Online advertising will close even out of the red.
And, within digital advertising, the distribution is also different. For some companies, this year has even been positive. Just think of Amazon, for example, which has seen sales grow overwhelmingly but also how advertising revenue grew . Not only did the direct sales registered by the site increase, with consumers locked up at home and betting more and more on electronic commerce, but also the investment in advertising that brands make on the web. 2021, growth in digital advertising Something similar is expected for the immediate future.
Now that the end of the year is approaching and projections are being made on how much money the advertising industry will move, it seems quite clear that the internet majors will have a positive year in 2021. That’s the latest estimate from analysts at Morgan Stanley, who have released a positive future outlook for online advertising majors. Their projections are that investment in digital advertising could grow by 20% in 2021. In this growth, the large internet companies will be the ones leading the trend. Morgan Stanley analysts point to Facebook, Google and – surprisingly – Pinterest leading the growth trend.
Why this growth Why will this happen? It all has to do with the pattern they envision in economic recovery for the online advertising industry. Data from recent quarters from Facebook, Google, Amazon, Twitter or Amazon have shown that investment in online advertising is recovering, but also that some of the trends that had taken hold these months have already taken hold in a more permanent way. . That is, they will stay here for as long as the crisis lasts. Therefore, this will impact the growth data and the figures that the large companies in the sector will achieve. Morgan Stanley analysts believe that the recovery in the digital advertising market will be in vee. When talking about how to get out of the crisis caused by the coronavirus on an economic level, experts used to mention several possible patterns. One of them was the vee, with a graph in the shape of this letter. After an abrupt fall in investment, it reaches the bottom and recovers again in a bullish way. That’s what Morgan Stanley predicts will happen with investment in digital advertising. The return in the vee will be underpinned by advertising linked to e-commerce and because brands are now doing brand advertising again.
To this must be added that, since consumers are locked up at home and spend more time at home, advertisers are more willing than ever to move their advertising investments to the digital channel. What drives the greats The companies that will lead growth will do so consistently. Facebook is expected to grow by 27% in 2021, which could be even higher because the estimate did not take into account either the Instagram Reels or the Shops option of the social network. Google will benefit if the tourism market (key in its search advertising) recovers and if YouTube offers strong and stable things to brands. And finally, Pinterest will make more money thanks to its new advertising tools and, importantly, the fact that consumers will have to spend their Christmases at home.