Ad spending is red-hot right now. Economies are shifting into higher gear, travel and leisure are coming back, and consumers are emerging from their pandemic lockdowns.
Although the global outlook is still uncertain, experts are talking about a post-pandemic economic boom. Not wanting to wait, companies hoping to ride the wave of the economic recovery are already pouring their resources into digital marketing, driving total advertising revenue to an exponential increase. Since the start of the pandemic, advertising revenue rose by 46% on Facebook, while YouTube revealed an even stronger growth of 49%.
The damage that Covid-19 has done to the industry can be seen in the amount of influencer content containing the #ad tag (and similar tags). Despite the downturn, social media users’ interactions with known influencers have increased by 7% regardless of the frequency of sponsored posts on their feeds. Because of this resilience and because it is easier to engage with new and long-standing customers, digital ads, social media and influencer marketing are have proven to be a very valuable platforms for businesses during the pandemic. In particular, Instagram holds the top spot this year among favorite platforms for influencer marketing while TikTok’s recent surge in popularity dropped Facebook to third place.
Digital advertising, influencer marketing and other digital initiatives are hot topics, which also comes with a surge in competition: most brands are already taking advantage of these tools and benefitting from the results, which makes it fundamental to prioritize personalized experiences to engage with audiences. With social media platforms increasingly becoming “shoppable” and e-commerce-oriented, companies cannot ignore the use of digital advertising to achieve results. That said, the importance of offline media cannot be ignored. Luxury goods brands for example, still spend most of their advertising dollars on offline media and rightly so.
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