Digital advertising and marketing record growth as pandemic eases
By Ibidunni Banjoko
The large increases in online traffic provide opportunities for companies to keep their target audience engaged through digital marketing initiatives. While overall digital market spending declined due to the Covid-19 pandemic-induced cuts in marketing and advertising budgets during the lockdown, available budgets are being directed at digital marketing initiatives.
Amid the Covid-19 crisis, the global market for digital advertising and marketing estimated at US$350 billion in the year 2020 is projected to reach a revised size of US$786.2 billion by 2026, growing at a CAGR of 13.9% over the analysis period. Display, one of the segments analyzed in the report, is projected to grow at a 15.5% CAGR to reach US$521.5 billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Search segment is readjusted to a revised 12.2% CAGR for the next 7-year period. This segment currently accounts for a 40.9% share of the global digital advertising and marketing.
Speaking to MARKETING EDGE on the latest development in digital marketing, Chibuike Goodnews the Co-founder of Dochase Adx Limited said: “The Covid-19 shifted the center of businesses from physical office to online. Consumers went indoors and used internet platforms as centres to connect to family and loved ones.
“Businesses had to adapt with quick digital transformation in operations, customer service and commerce. This turned attention to digital, not just as an option but a meeting point between businesses and consumers. This huge shift became leverage for digital marketing as the new solution for businesses.
“For 2021, all digital marketing platforms witnessed a huge growth. We saw more share of the budget than ever; more demand and interest even from traditional players for digital advertising solutions.
“There are also challenges in the KPI as businesses now demand more performance and accountability from their marketing spend. This comes from the fact that digital is measurable. Technology in marketing has also gone deep to provide visibility to advertisers around the effective cost of each user. So advertisers who want to optimize costs have started looking for the cheapest digital solution.
“Regardless, digital marketing has grown rapidly in 2021. Platforms like Dochase saw 3 times growth in 2021.”
Mr. Goodnews argued that the attention on digital will continue into 2022. “Globally, programmatic share has grown up to 60% in some countries, but it’s still growing in Nigeria. An important fact to also note is that 2022 is a year to the election in Nigeria, so a lot of budget will still flow to digital.”
Also commenting on the rapid growth in digital marketing, Muyiwa Aleshinloye, Group Head, Digital at Insight Redefini, said the arrival of Covid-19 pandemic has created more opportunities to digital which has turned digital marketing into the solution for necessities.
According to him, businesses entered the year 2021 with cautious optimism after coming through what was a year like no other. “2020 was a year no one could have predicted – a lot of businesses struggled, some were put out of business, while some flourished – thanks to high demand and low operational costs.
“I like to describe Covid -19 as the chief digital transformation officer since it was largely responsible for the rapid digital adoption experienced over the past 18 months. VoD, logistics, telecoms, ecommerce, FinTech industries experienced massive growth, particularly during the lockdown.”
The digital marketing expert, continued: “Despite the poor economic outlook – inflation, unemployment rate, cost of food etc. investment in digital advertising, like MarTech and other digital solutions will increase going into 2022, as more businesses record positive ROI. The future is digital and the future is now.
“The consumer has evolved, smart businesses will adapt by creating systems, products and services to meet the needs of this new digital-first consumer.”
Also speaking, Johnson Anorh, founder, Oaklands and Johnson, affirmed that the pandemic totally fast-tracked the world, adding that those who were fit, joined the race and they did quality businesses, grew their portfolio and smiled to the Bank in 2021.
“Others who were too slow to notice the change that was happening all around are taking key learnings and trying to evolve, while some completely died or are on the verge. You need to see bespoke apps being developed by digital marketing agencies. They are not waiting for a client’s brief; they are going ahead to proffer solutions to perceived needs. They are visiting other traditional and digital agencies and marketing their solutions. As life becomes more and more democratized we will find solutions that will have more mass appeal emerge from agencies,” Mr. Anorh averred.
RECOMMENDED ARTICLES
Comment
No comments found.