A new survey by Mediaocean has gone on to reveal some interesting insights regarding social media as a marketing channel. And new statistics have proven that the social media channel is being called out as the world’s fastest-growing channel for the year 2022. This recognition stems from the simple fact that nearly 72% of marketers are planning on boosting their budgets in regard to the channel’s format for 2022.The survey that featured nearly 600 different advertising experts delineated how Social is being looked upon as a platform that offers a plethora of opportunities in terms of marketing. This is related to its great performance potential in terms of creativity and productivity that many simply can’t stop talking about.Around 26% of those surveyed claim that evaluations are done through methods like non-cookie-based maneuvers including mix modeling, which they claim had the greatest potential. And when combined with panels and learning through federated means- the entire mix had the capability of being the most profitable in 2022.Meanwhile, around 22% of people appeared to hold a strong feeling that enhancements made in execution as well as media planning would prove to be the most effective. The head of Mediaocean shed light through a public statement on what he felt about the results. And that’s when he started off by mentioning that while 2021 was fairly unpredictable for the marketing world, there were still a lot more hopes and aspirations attached to 2022.This year has plenty of demand that counteracts the great economic uncertainty that many may have in this regard and the research conducted by his team reflected just that. Remember, heads of the industry are being very cautious with their moves now. They are trying to equip with today’s fast-paced world and the great technological advances that come with it.Solutions without cookies seem to be the future and it’s great to see so many people who took part in the study acknowledge that while maintaining a positive attitude when moving into the next quarter. Still, however, there are plenty of areas of concern. These include a massive fall in demand in the ways through which we can measure such aspects effectively through tech platforms. This includes today’s open web world and the access present to different talent powerhouses. Let’s not forget how much stress is being laid on a lack of preparation for the future that many hope will include cookie-free technology. Read next: Smartphone Cameras Have Come A Long Way As Imaging Trends Receive Massive Upgrades
While 2018 was a challenging year for global social media advertising amid the implementation of GDPR, privacy scandals, and brand safety concerns, Forrester forecasts that social will remain the fastest-growing digital advertising channel globally over the next five years. This growth will be driven by increasing revenue per user and will be fastest in Asia Pacific and other markets outside of North America and Europe. We expect Asia Pacific’s share of global social advertising spend to increase from 30% in 2018 to 35% in 2023, mostly due to growth in China. Revenue per user is powering the overall growth in social advertising spend in terms of both depth and width: Social media players are increasing their revenue per user by launching novel advertising formats and increasing ad loads (depth), while individuals are using multiple social platforms and adding new platforms to the list of social media they use (width). The dynamics of per-user revenue growth differ depending on whether the market is developed or emerging:
Tencent’s Revenue Per Monthly Active User Lags Against Its Peers For more detail on the drivers of social revenue per user and the breakdown of global social advertising spending by region, device, format, and social network, please see our latest ForecastView report, “Forrester Analytics: Social Media Advertising Forecast, 2019 To 2023 (Global).” Related Forrester Content (For Client Purchase):
These forecasts were prepared before the emergence of the omicron variant, and, it has been found that, the travel, hospitality and bricks-and-mortar retail sectors face risks on the downside. But there is potentially an upside to e-commerce and related digital advertising. Many consumers who would prefer to browse and purchase in person are shopping online by necessity. Businesses have responded by investing more than would otherwise have been justifiable in new technology, infrastructure, organisational change – and advertising. This includes brand advertising to promote e-commerce platforms, performance advertising to direct traffic to them, and advertising within these platforms (‘retailer media advertising’) to promote specific products, where, all of them have surged.Over the last six months it has become clear that booster shots are necessary to maintain the effectiveness of vaccines, that the fully vaccinated are able to pass on infections quite readily, and that substantial pockets of the population are unwilling to be vaccinated at all. Progress towards containing Covid-19 has been slower, and consumers have been less willing to resume in-person shopping. Businesses have continued their heightened investment in digital transformation, during a period in which many expected to ease back as consumers returned to shops. Digital advertising has therefore been stronger in the second half of this year than previously expected. It is estimated that digital advertising will grow by 25 per cent year-on-year in 2021, compared to the 19 per cent estimated in the previous forecast, published in July.The report forecasts 14 per cent growth in global digital ad spend in 2022, up from the previous forecast of 10 per cent, followed by 9 per cent growth in 2023 and 10 per cent in 2024.This structural change in the economy means that advertising is playing a greater role in driving sales growth through ecommerce. It has sparked a surge in retailer media advertising: display or search advertising that appear on e-commerce platforms.It is estimated that retailer media advertising surged from 24 per cent growth in 2019 to 53 per cent in 2020, and then 47 per cent in 2021, when it totaled USD77billion. This is equivalent to the sums spent on newspaper, magazine, radio, and cinema advertising combined. This accounts for 20 per cent of all expenditure on digital display and paid search advertising. By 2024, retailer media ad spend is expected to reach USD143 billion, and 27 per cent of display and search.The share of global GDP (gross domestic product) contributed by advertising had been rising steadily before the pandemic, from 0.72 per cent in 2014 to 0.75 per cent in 2019. After the step-change in digital media consumption and ecommerce last year, it is forecast to reach 0.77 per cent in 2021 and 0.80 per cent by 2024. This will be the biggest rise in advertising’s share of GDP since the late 1990s.The Central & Eastern Europe (C&E Europe) and the Middle East & North Africa (MENA) markets are expected to show fastest growth between 2021 and 2024 to come from with average annual growth rates of 12.2 per cent and 10 per cent respectively. C&E European advertising is being fueled by the rise in productivity and disposable incomes as its economies develop towards maturity, encouraging more brands and product categories to enter the market. MENA, meanwhile, is benefiting from high oil prices as demand for energy has outpaced production. The slowest growth is expected from the mature markets of Western Europe, where growth is forecast at a healthy 5.3 per cent a year.It has been expected that the biggest contribution to the growth in ad dollars will come from the US, where ad spend is forecasted to expand by USD80 billion between 2021 and 2024. That represents 48 per cent of the entire growth in global ad spend over this period. The next-largest growth will come from China (UDS15.8 billion, or 9 per cent of the total), the UK (USD6.0 billion, or 4 per cent) and Japan (USD5.4 billion, or 3 per cent). These are the world’s four largest ad markets and make up in scale what they may lack in speed.It has been predicted that social media will be the fastest-growing channel between 2021 and 2024, with an average annual growth rate of 14.8 per cent, closely followed by online video at 14 per cent. Paid search will grow by 9.8 per cent a year, primarily driven by retailer media, and out-of-home will enjoy solid 7.4 per cent annual growth as foot and vehicle traffic return to normal. Radio and television will grow marginally, by 2.2 per cent and 1.4 per cent respectively, while print declines by 4.7 per cent. It has been forecasted that the cost of television advertising will rise by 11 per cent in 2022, compared to 4 per cent for out-of-home, 3 per cent for digital display, 2 per cent for radio, and zero for print. Brands will have to confront their dependence on a medium that consistently delivers smaller audiences for higher prices. Multiple platforms deliver content through multiple devices to multiple screens, while ads may be passed through a chain of demand-side platforms, exchanges, ad networks and content delivery networks before reaching the consumer. But, by investing in data and planning technology, and building partnerships with providers, brands can use online video to increase their reach and reduce their costs. It has been forecasted that online video adspend will increase from USD62 billion in 2021 to USD91 billion in 2024, when it exceeds 50 per cent of this size of television for the first time. Television ad spend will rise from USD171 billion to USD178 billion over the same period.According to eMarketer, adult social media users in the US are spending 60.4 per cent of their time with Facebook and Instagram this year, down from 74.8 per cent in 2017. That’s the result of the rise of TikTok, which grew from nothing to 15.1 per cent of social media usage over this period. The platforms are also embracing commerce and developing new advanced interactions between brands and consumers. Brands can use self-serve tools to create augmented reality experiences and then distribute them through targeted advertising, which can powerfully lift awareness and intent to purchase. Jai Lala, chief executive officer, Zenith India, said, “Digital Transformation in India continues to be a priority with 1 in 2 corporates having digital transformation at their core. The pandemic has further accelerated digital growth amongst consumers with increased consumption across platforms in the area of entertainment, purchase, social, education and finance, amongst others. All these factors have led to a steady increase in ad spend making digital the fastest growing medium.” The research, carried out in collaboration with data science company Signify Group, found that the abuse included sexist, racist, transphobic, and homophobic content, as well as unfounded doping accusations... |