According to a study by the IAB (Interactive Advertising Bureau), a US online advertising association, digital advertising revenue continued to grow in 2021, exceeding $189 billion. However, the full IAB report noted that while online advertising growth was significant in 2021, it did not surpass the growth of video content advertising, which increased by 50% year-over-year. What will the trend of online marketing be? What interesting developments can we expect? Let’s explore together.
PPC Remains the Number One Advertising Format
As expected, PPC (Pay Per Click) advertising remains the top performer in terms of revenue, accounting for 41.4% of all online advertising revenue in 2021. Mobile device advertising reached $54.7 billion (up from $39.7 billion in 2020), while desktop advertising was valued at $23.5 billion (up from $19.3 billion in 2020).
Social Media Advertising Shows Continued Positive Trend
Social media advertising, despite experiencing a slowdown due to the early impact of the COVID-19 pandemic, saw revenue from social media platforms (Meta, Twitter, Snapchat, TikTok) reach $57.7 billion in 2021, up from $41.4 billion in 2020.
An interesting observation is why various situations occurring in the world today, such as economic recession, epidemics, do not seem to affect online advertising as much. The IAB commented that more than 80% of brands use significant funds to advertise with influencers or content creators to increase ad reach, resulting in massive revenue exceeding targets. In addition, there are also some interesting statistics from the IAB report:
- Excellent year-over-year growth in each quarter (expected to continue rising in 2022)
- Online advertising revenue in the fourth quarter of 2021 set a new record of $55 billion, up nearly $10 billion from the same period in 2020
Prospects for the Advertising Industry in 2022
At the beginning of the COVID-19 pandemic, there was an atmosphere of “uncertainty” among brands and marketers worldwide, with a big question of whether online advertising would continue to grow. Fortunately, COVID-19 did not take everything away, as evidenced by all the evidence mentioned above. Online advertising continues to grow strongly and consistently. However, the IAB predicts that even though online advertising growth can continue across all channels, the growth and development of platforms ready to support various media for advertising, and global investors have enough trust in technology.
However, problems such as the ongoing COVID-19 pandemic, changes in data collection from third-party to first-party, and the economic recession facing the United States, or even the Ukraine-Russia situation, may affect online advertising this year to some extent. Therefore, marketers planning online marketing strategies must be prepared to deal with problems that may come unexpectedly.
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