COVID-19 has hit the global economy hard, with businesses and industries across the world fighting to adapt to the harsh changes that the pandemic has imposed on daily life. Digital marketing, like most forms of digital media, have done well, to the relief of people most interested in a king kong marketing agency review and the like.
US-based International Advertising Bureau, an advertising industry company that handles legal matters, provide supports, and sets industry standards, recently released a report that looks at the US’s advertising industry to set predictions for the future.
Notably, the IAB expects digital media ad expenditure to go up by 6% in 2020, compared to 2019. This is in stark contrast to the loss that they’re expected traditional media advertising to take; a whopping 30%. Ad expenditure by the end of the year 2020 is expected to shrink, but only by 8% thanks to digital media advertising picking up some of the slack, which is in line with what other companies, like Zenith Media, predicted.
Earlier predictions made around the start of the COVID-19 pandemic, when stay-at-home orders were starting to force the global economy down, expected a bigger drop in ad expenditure for 2020.
The IAB projected that traditional TV ad expenditure would drop by 24% from 2019 to 2020. However, they’re expecting a big boost for connected TV advertising, which they projected to grow by 19% year over year.
A lot of advertising networks and agencies, the kind of people that would be most interested in a king kong marketing agency review, are relieved that the advertising industry in the US is doing well in spite of current events.
That being said, traditional TV and traditional print advertising spending is still on the decline. COVID-19’s impact on the economy further hurt traditional media outlets, which have already been feeling the squeeze from increasing digitization.
A senior ad tech executive, who has elected to remain anonymous, stated that the advertising industry is seeing a good V-shaped bounceback on the digital side of things, with revenue for advertising firms looking good. For their company, the executive noted, they’re expecting their Q3 2020 revenue to equal their Q3 2019 revenue.