According to a recent study of DigiDay, despite the uncertainty associated with the pandemic, advertising spending are expected to increase in the course of 2022. Analysts believe that these expenses will even increase in all categories.
Economic fluctuations no longer worry brands
Even the emergence of Omicron and the possibility of new containments do not seem to worry advertisers. Now accustomed to this situation, advertisers adapt and adjust their campaigns as they go.
2022 in five “media” trends according to Kantar
In 2022, the world will still face many macroeconomic challenges with historic shortages and the Covid-19 pandemic. As real as they are, these challenges don’t necessarily determine how much businesses are willing to spend on advertising, but rather their destination.
The trend is digital advertising. In 2020, around the time of the first wave, when the pandemic brought the economy to its knees, businesses took a close look at their advertising spending. Most advertisers then decided to focus their biggest strike force on digital ads, to continue to reach their prospects and customers, despite the containment measures.
Not surprisingly, this trend is benefiting tech giants Meta, Google and Amazon. On their own, they hold 50% of the global advertising market and 80% of digital advertising (excluding China, not included in the estimates).
The evolution of advertising spending in 2022
In 2022, this trend should not weaken: 64.4% of ad spend will be on digital ads. This is an increase compared to 2020 (52.1%) and also compared to 2021 (60.5%). This phenomenon is proof that marketers are not able to shed large web platforms to communicate …
Even if they say they do not want to depend on them, it appears that it is very difficult to abandon them because of the results they produce. Spending on social networks (156 billion euros) will even exceed those of television in 2022 (153 billion euros). Marketers go where users are focusing their attention. In 2021, American adults spent 60.4% of their time on the web, Facebook and Instagram.
According to Vincent Letang, partner at IPG’s Magna, “Total advertising spend as a whole is less and less correlated with economic fluctuations, simply because of the huge organic growth factors that are boosting, in particular, digital formats”. In short, we see that economic uncertainty no longer influences decisions as much advertising investment.