Advertisers' demand for internet marketing is enormous, which is also noticed by agencies in Poland.
Record profits of the giants
Advertisers, after the uncertainty caused by the outbreak of the pandemic, are once again investing heavily in the digital channel. Alphabet, the owner of Google and YouTube, recorded a profit of USD 11.25 billion in Q3 2020, while Facebook posted USD 7.85 billion – both are records in the companies' histories. Alphabet's advertising revenue grew by around 10%, and Facebook's by 20%. According to the IAB strategic report for 2019 and the IAB/PWC adex report, the internet has already overtaken television - now this trend will be even more noticeable. No wonder - a large part of activity has moved from offline to online, so consumers spend more time on the internet, which online advertisers benefit from.
The picture of the internet marketing market looks very optimistic, but much depends on the condition of the economy in the coming months. We are recording a very large increase in inquiries and won orders for digital marketing campaigns - looking only at these two indicators, the situation is even better than before the pandemic. The above dependencies show that advertisers, instead of long-term investments, e.g. in a new website (often treated as a new suit for negotiations), are allocating record amounts to driving sales through digital marketing - short-term strategies dominate. What's more, the results in the form of generated sales and leads for our clients indicate that their businesses are growing thanks to these activities. - says Jędrzej Zarychta, Head of KERRIS Select.
What is driving the current boom in the online advertising market?
Increased spending on digital advertising and the ongoing pandemic mean that flexibility is becoming increasingly important. According to discussions held during industry conferences, advertisers will allocate their 2021 budgets to entities that demonstrate readiness for change and quick response depending on the requirements of the situation.
Summary
The online advertising market is booming – Alphabet and Facebook are posting record profits, with advertising revenue growing by 10% and 20% respectively. The internet had already overtaken television earlier, and the pandemic has only accelerated this trend, moving consumer activity online.
Polish agencies confirm the optimism, observing growth in inquiries and orders for digital campaigns. Advertisers are betting on short-term strategies that drive sales, and flexibility in responding to the changing market situation is becoming key.
