Advertising Spending - Buying Online
Pandemic impact for advertisers
Overall, advertising spending has been drastically reduced.
And this is true for both large and small brands, from local supermarkets to multinationals.
Digging deeper into SEMrush data when we compare February 2020 statistics to March 2020, we see a huge shift in digital ad spending.
Advertising Spending - Average Spending February vs March
The biggest drop in ad spending is among advertisers in the $1,000 to $5,000 bracket, while the only increase is among those spending more than $1 million.
Industry breakdown: changes in advertising investment
When we look at the industry breakdown, we can spot a similar taiwan phone code pattern to the above:
The only industry that has continued and even increased its advertising spending is beauty and fitness.
This is not surprising considering that this industry is already under a high level of stress to compete with its online rivals, even in the pre-COVID-19 era.
Therefore, it seems to be the most suitable to quickly adapt to the changing environment and find growth opportunities.
In addition, many beauty and fitness companies are confidently expecting a high flow of customers in the short term once the state of emergency lockdown ends.
During this period, they have been offering discounts, selling gift vouchers and offering places on their waiting lists, which, as expected, have started to fill up as soon as the restriction measures have begun to ease.
Impact of ad inclusion
Now mainstream audiences are turning to digital news, gaming and streaming.
YouTube in Italy, for example, has seen a 49.04% increase in traffic according to SEMrush Traffic Analytics data , while Google’s total net revenue for 2020 is projected to decline by US$28.6 billion.
Note: With low consumer confidence and lower purchasing power, brands are still considering investing in online advertising.
With the decline in advertising spending, advertising costs have also mostly declined.