According to the Report Linker, the global advertising market tends to have excellent growth in this new year 2022 and continues to grow over $80 000 million until 2025. This growth will have an impact on the global economy and the way companies do advertising. Keep reading to find out more!
COVID-19 has fostered digital transformation
The pandemic has significantly changed shopping habits. Many people who would prefer to shop in stores are more likely to do it online. Companies have responded by investing more than usual in new technology, infrastructure, and organizational changes.
In addition to this, there has been greater investment in branding activities for e-commerce platforms, performance advertising to drive traffic to them, and also advertising within these platforms to promote certain products.
The advertising industry contributes more to the global economy
The digital transformation of the economy means that advertising is playing a more important role in the growth of e-commerce. In particular, this has led to an increase in digital retailer media advertising: Display or Search Ads, which are delivered on e-commerce platforms.
Social media expected to grow the most in 2022
Social media is becoming increasingly competitive. According to eMarketer, adult social media users are currently still spending 60.4% of their time on Facebook and Instagram this year, up from 74.8% in 2017.
The reason for this is the rise of TikTok. The platform's usage has grown from zero to 15.1% during this time. Social media is developing new ideas for advanced interaction between brands and consumers, which again generates additional growth potential for advertising investments.
In 2022, total digital advertising spending will for the first time reach more than 60% of the global advertising market (61.5%). By 2024, this share will even reach 65.1% (source: Zenith report).