It turns out that the internet is a far more cost-effective advertising area than television. Based on research by the media house Zenith, it was estimated how much more advertisers will invest in online promotion.
Marketers around the world will spend as much as USD 40 billion more on online advertising compared with advertising published on television. These were the conclusions of an analysis conducted by one of the media houses. According to Zenith, online advertising budgets will account for 40 percent of total spending on paid promotion.
Considering the speed at which technology is developing and people's growing level of trust in mobile devices with internet access, such research results should not be shocking to anyone.
What impact do social media have on advertising?
Spending on online advertising
The growth of online advertising is currently mainly due to social media and display formats. The largest share is held by Facebook, Instagram, and YouTube.
Zenith calculated that global social media advertising budgets will increase this year by as much as 21 percent to USD 58 billion. Costs related to online video advertising will increase by 19 percent, resulting in as much as USD 32 billion. Of course, advertisers most readily direct their ads to search engines such as Google, among others. Marketers will most likely spend as much as USD 95 billion on this advertising format this year.
Analysts at Zenith indicate that 60 percent of online advertising budgets are allocated to promotion on mobile devices. Compared with the previous year, investment growth is currently as much as 25 percent higher. At the same time, it is also worth noting that spending on promotion on desktop devices fell by 4 percent.
The media house Zenith, according to its preliminary calculations, says that advertising spending in 2018 will increase by 5 percent globally, meaning it will amount to USD 579 billion.
Concepts from the article
Advertising spending — AdSpend — the advertising market. The total value of media buying in a given period, broken down by channel: television, internet, out-of-home, radio, press, cinema.
Why it matters: A point of reference for your own budget and the basis for discussing your share of the advertising market in your category.
When it is used: In annual planning, competitor analysis, and budget discussions with the board.
What happens if you omit it: Without market data, "we increased the budget by 10%" means nothing — if competitors increased theirs by 30%, your share of voice fell.
Social Media — Social media. Platforms that enable users to create, publish, comment on, and share content and build communities. For a brand, they are an organic, advertising, customer service, and analytics channel.
Why it matters: It combines reach, dialogue, and sales in one place: the brand speaks, listens, and responds where audiences spend their time. It is also a customer service channel and the first front in a crisis.
When it is used: Continuously: organic content, paid campaigns, handling inquiries, opinion monitoring, and creator collaborations.
What happens if you omit it: Absence from social media hands the narrative to others: people will talk about the brand anyway — just without its voice.
Summary
Online advertising will definitely overtake television — the difference in global spending is set to reach USD 40 billion in favor of the internet. The main growth drivers are social media, display formats, and online video, with clear dominance by Facebook, Instagram, and YouTube. Zenith analysts forecast that this year USD 58 billion will go to social media advertising, while search engines will absorb as much as USD 95 billion. Importantly, 60 percent of online budgets fuel mobile advertising, while spending on desktop devices is falling. In 2018, the global advertising market is expected to reach USD 579 billion, growing by 5 percent. For marketers, this means one thing: mobile and social are the space where the battle for consumer attention is decided.
