According to reports, two advertising industry reports released today show that the growth of the global advertising industry this year will exceed previous expectations because brands will rely more on search engines and social media during the epidemic. Companies such as Google and Meta Platforms (Facebook) come to reach customers.
Advertising company Zenith released an advertising expenditure forecast report today. The company’s global data director Jonathan Barnard (Jonathan Barnard) said that although the global supply chain has been interrupted in the past year and product launches have been delayed, Apple has adjusted its user privacy policy. Mobile advertising has been affected to a certain extent, but due to the continuing epidemic, the recovery of in-store shopping has been slow, causing brands to continue to advertise online.
At the same time, Brian Wieser, president of the advertising company GroupM, also said today that new companies established during the epidemic need to find customers through advertising; other companies may maintain advertising expenditures to maintain The impression in the consumer letter.
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GroupM predicts that global advertising spending in 2021 will increase by 22.5% over the previous year. Zenith expects an increase of 15.6%, both of which are higher than the previous expectations of the two companies. The two companies also predict that global advertising spending is expected to grow by approximately 9% in 2022.
GroupM said that this growth is a boon for Google, Meta and Amazon. These three companies are the main sellers of digital advertising and currently account for more than half of all advertising expenditures in markets outside of China, up from nearly 40% in 2019.
In addition, the need for merchants to directly contact consumers has also led retailers such as Walmart, Target, and Kroger to rapidly develop their advertising sales business, enabling brands to use shopper data to target more customers. Zenith data shows that this form of advertising has grown by 47% this year, reaching a total of 77 billion U.S. dollars, and is expected to expand to 143 billion U.S. dollars by 2024.