Economic uncertainties slow down online advertising

online advertising

Global online advertising investment is set to explode and exceed $ 250 billion for the first time this year. The situation is a bit different. Here, the forecast had to be corrected downwards.

Looking innovative companies rely on web apps and headless CMS the global revenue from online advertising, the prospects are good: the global investment is forecast to rise this year by 4.7 percent.

This shows a forecast of the media agency. She even had to correct her statement from December 2018 for the current report: at that time only 4.0 percent had been predicted.

“Online advertising will take this year for the first time the brandHow brands manage to be present beyond the website and app of 250 billion US dollars exceed”

“The speed of growth is surprising, the reason being that small businesses and digital challengers have established encouraging brands to improve their performance stronger performance in fashion e-commerce through AI-based personalization.”

Online Advertising

The growth drivers

This also suggests rapid growth for the next few years: an average of ten percent growth per year by 2021. This would bring digital advertising to $ 329 billion by 2021, which would account for 49 percent of all global optimize content for global markets advertising spending.

Growth is driven primarily by online video and social media, which are expected to grow by 19 percent and 14 percent annually by 2021, while SEA and Classifieds will grow at a slower rate of 7 percent a year.

Forecast

The most significant contribution to global advertising growth is currently being made by the USA, which is expanding the market by $ 32 billion between 2018 and 2021. China comes second with $ 16 billion, followed by India with $ 5 billion. Contributes little here. In this country, the situation is a bit different.

The forecast had to be revised down by 0.7 percentage points in the quarter. The experts are now expecting a one-percent growing online advertising market in 2019.

Background are economic uncertainties such as trade conflicts and Brexit, which can have a negative impact on the cost structure of companies, so they act more cautious.

Online Advertising

Where does global online advertising growth come from?

A large part of the online advertising growth – and thus the entire advertising market is currently coming from small businesses such as local shops, restaurants and hobby shops.

Platforms such as Google and Facebook have opened the advertising market to many of these small businesses for the first time, offering self-service tools for creating advertising and managing campaigns.

This allows the localization of the target audience approach needed to reach a limited potential customer base. Online advertising for small businesses increases from an extremely low base to a share of the advertising market that better reflects their true contribution to the economy:

in most countries, small businesses contribute half or more to GDP and an even larger share of employment at. These companies do not use mass media to gain wide publicity. Their customer base is often so limited that it would not make sense.

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