The Covid-19 crisis is hitting advertising on traditional media (est. -20,7% worldwide by GroupM/WPP) much harder than pure digital advertising (-2,4%), mirroring the massive shift towards e-commerce. The FT records that ‘three years’ worth of digital acceleration’ took place in just the last three months. Digital advertising is now estimated to account for over half the $530bn global advertisement spending this year. In their search for cheaper and more effective and targeted promotion, small businesses in particular are responsible for pushing digital advertising just above the 50% spending threshold. With big companies still postponing their marketing efforts, the far majority (maybe even over two thirds) of Facebook and Google advertising is local. Although the old media may regain some ground after the crisis, the steep learning curve so many small business owners are now going through will change their behavior permanently and force others to follow. Moreover, as the growing share of local business enhances their (passive and active) digital interaction with customers, competition with much bigger companies and their brands will increase for sure. Recall that it is only just more than a decade ago that Google’s turnover overtook that of the Yellow Pages worldwide.
Read more on Financial Times: Digital ad market set to eclipse traditional media for the first time
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