Global marketing spending has “regained lost ground” since September and in March reached its highest growth in 15 months, according to an analysis of spending on seven leading technology platforms.
Ad spend in March 2020 – the month the World Health Organization said Covid-19 was a pandemic, the stock market crashed and the UK was frozen – was down 9% year over year and 1% month over month. March usually grows to the numbers of February after a break after the holidays.
However, March 2021 rose 31% year-on-year and grew 19% year-on-year, 2019.
Advertising platform Mediaocean, which analyzed the ad spend of more than 300 advertisers totaling more than $ 3 billion on Amazon, Facebook, Instagram, LinkedIn, Pinterest, Snap and Twitter, said the numbers showed “pent-up energy” from businesses who have regained confidence.
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The turmoil of 2020 was down 22% and 7%, respectively, in April and May from a year earlier.
Although many businesses are opening up for the summer, spending declined 18% and 17%, respectively, in June and July as hundreds of brands boycotted advertising on Facebook to post hateful content on their platforms after protests against Black Lives Matter fight.
The negative trend finally began to reverse in August when the UK government’s Eat Out to Help Out program and Covid-19 restrictions were eased in many countries around the world.
Aaron Goldman, Mediaocean’s chief marketing officer, said, “We have had an incredibly tumultuous year for businesses where marketers had to balance financial caution with innovating new ways to reach consumers while responding to the unpredictable and risky media cycle.
“We highlighted the opportunity to rethink media buying and take an omnichannel approach to communicating with customers. It’s good to see that the industry agreed and lost ground again in the second half of the year. ”
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The golden retail district before Christmas saw 20% more spending on platforms than in 2019.
Mediaocean, which calculated the trends using the closed ecosystem optimization solution it acquired from 4C last summer, said that, along with a strong start to the year leading up to the pandemic hit, meant 2020 ended 6% higher than 2019 .
Goldman said the growth to date in 2021 – including 9% and 10% in January and February, and the jump of a third in March – was partly due to renewed business confidence, but also due to advertisers becoming more focused on closed ecosystems.
“It’s important to remember that opening up marketing budgets is not a return to a pre-pandemic normal,” he said.
“Of course, last year consumers were heavily dependent on digital and social commerce. Smart businesses will invest to make sure they have the data to track these behavioral changes, are agile enough to adapt to them, and ultimately make sure they sell where buyers buy. ”
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