Projections for Digital Ad Revenue Trends in 2021

Increasing investments have been made in digital ad revenue as technology use continues to expand, further amplified by extents of in-home time spent in the current Covid-19 pandemic. Developments in the past year included greater extents of investments that have been projected to increase still further through the current year. The combination of mobile and general digital ads increased by 12% in the US across 2020, rising to approximately $140 billion, and online ad expenses are expected to increase by approximately 20% this year. While growth has been projected to be near 10-15% annually over the next few years, strategic developments and integrations addressed this year have been targeting local changes and recent observations. 

Expanding e-commerce, economic growths, social media engagements, direct response campaign use, falling television use, and the pandemic have been among the most powerful factors driving change. In the past year, larger organizations have tended to not invest as much in digital advertisments while smaller organizations have been observed spending more in the area. The increasing amount of online engagement has facilitated increased analyses of consumer behavior, and resultant recommendations for continuing to work to optimize affected and relevant processes. Social media services are expected to have an increasing involvement in digital advertising expansion. Investments in digital advertisements have been targeted in preference campaigns, and have more commonly been used in ways focusing on optimizing reach through records of software preferences.

Continuing efforts to optimize digital ad spending has included deep market assessments and compilations of organizational data. The rises in spending observed in companies in the past year have been paralleled by a total revenue loss in advertising space of one percent, and this is expected to be followed by a recovery of four percent across 2021. As a regional projection, China has been estimated as spending $75.33 billion of $105.25 billion total ad spending for digital revenue specifically. Expected to be the second largest digital advertising market worldwide, international trends compounding with this will affect the foundation of the international economy and market before 2022. 

The Western world has been projected to spend somewhat less, with their combined total estimated as being approximately $127.9 billion for the year. The UK alone has been expected to experience marginal growth supported by video sales. Canadian spending on mobile ads has been estimated at 8.0% growth for the year. Growth in US spending has been estimated at 6.4% for 2021, or $240 billion total for the year.

Spending in other areas may further affect international marketing trends. Latin America is expected to spend $9.33 billion amid a 5.0% growth. Brazil and Mexico have been leaders in Latin ad spending, and digital platforms are expected to account for approximately 39% of all media spending. Colombia, Chile, and Brazil are expected to experience more growth in digital advertisements than other regions worldwide.

Spending in digital versus other forms of advertisements internationally is expected to increase to levels dominating priority in comparison to other forms of advertisement investments, thereby impacting marketing strategies and aspects of business processes. Digital advertisements are rising up to, and past, two-thirds of total advertisement investments for the first time. Large and famous international organizations Amazon, Google, and Facebook have increased advertisement investments by 17% while increasing market share to 82%. 

The increases expected may stabilize and expand demands for resource allocations, stakeholder decisions, and prioritized channels for consumer awareness. The impacts of digital advertisements dominating market resource allocation while growing may give rise to developments in best practices and expert recommendations this year. Those affected by marketing have potential to learn of changes inspired or resulting from these developments as they continue.

References

https://www.cnbc.com/2021/04/07/digital-ad-spend-grew-12percent-in-2020-despite-hit-from-pandemic.html
https://www.newsweek.com/how-digital-advertising-will-change-2021-1565525
https://www.morningstar.com/articles/1014195/digital-ad-spending-poised-for-exceptional-growth
https://www.marketingdive.com/news/digital-ad-sales-to-top-two-thirds-of-total-spend-for-first-time-in-2021-m/597685/
https://whatsnewinpublishing.com/robust-growth-to-resume-in-2021-global-digital-ad-spending-to-bounce-back-reports-emarketer/
Filed in: Uncategorized

Philip Tadros - Founder
Philip Tadros is the Founder of Doejo an award winning Innovation Studio with over 50M dollars sold in Innovation, Consulting and Business Development services.