Every company needs a brand promotion to catch the eyes of the customers and the most traditional and powerful medium has always been Advertising. It began with some graffiti works on the walls and streets and then it moved to daily newspapers then into radio sets and then it got a multimedia look through televisions. So in essence, as the technology has evolved, has advertising techniques too and has gone only more innovative. But since the breakthrough of the internet in the late 1990s, there has been a radical changing the very nature of advertising and this gets reflected in the overall spending that is been done on advertising.
The online advertising market is just booming and it is booming only for one reason that investors and Businesses are feeling that it is giving them positive outputs. With the outbreak of a devastating pandemic, the demand for data has spiked like anything and more and more people are getting onto the Internet even for their basic requirements.
All the businesses have moved online, employees are working from home, kids and students are taking their lessons online, so in effect, the user base has shot up like anything and the projected spending on digital advertising is very promising.
In this blog, we will discuss the expected spending for advertising in the coming 2 years 2022 and 2023 and we will do a comparative analysis to see how the numbers look from the base year of 2021. So let’s get started.
Total digital advertising spending
Online digital advertising includes a range of options like advertising through and along with online videos, the most promising and ever-rising social media advertising, advertising through others section apart from above two, the old classified advertising but now it has gone digital and is showing some really promising results and the last but not least for sure the search engine and keywords advertising.
The total spending that was done worldwide on online advertising stood at $239423 million in the year 2021 and it is projected that this number will only increase in the coming years. We have some projections for the coming two years.
For 2022, this number is expected to shoot to $275678 million, a 15% increase over the 2021 figures and for 2023 the numbers are expected to be around $299983, an approximately 8% rise over the 2022 figure. In essence, the numbers are expected to increase by a huge margin and we put that number to be around 25% over 2021 figures.
The projected spending for the year 2023 is $299983, and we can see how it can rise from 2021 figures which were $239423 million in the year 2021.
Online Video Advertising Spending
It all started majorly with the successful and big-time response that YouTube got to manage and catch. And since then as the data prices have dipped, and the speed of the Internet has increased with the coming up of 4G enabled handsets and now 5G and talks of 6G, the arena of online video is going to on rising only. And as embedded online videos have become part of almost all the major websites, we all know what happens. With the increasing username, advertisements follow and data speaks for that. Projected advertisement spending on online video has some very exciting numbers.
In 2021, close to $62,367 million worldwide was spent on online videos and it is estimated that this number will climb to $71234 million in 2022 which is around a 14% climb year on year from 2021, and for 2023 the estimated internet advertising on online videos is $79476 million and might be around 11% rise over 2022 figure.
The numbers speak for the mammoth capability of this as we told, in effect it is estimated that the spending which was $62367 million in 2021 will shoot up to $79476 million in 2023, a whopping 27 Percentage increase!
Social Media Advertising Spending
The initial conception of social media was to bring people closer and make the world truly a global village. It has made it exactly like that and with the mushrooming of social media sites these days, led by the well-known ones like Facebook, Twitter, etc it has also turned this huge space into a booming market.
The total spending on social media advertising in 2021 stood for close to $150784 million worldwide and it is estimated that this number will climb to $177845 million in 2022 which is around an 18% climb year on year from 2021, and for 2023 the estimated internet advertising on social media is $198286 million and might be around 11% rise over 2022 figure.
So, even if we see the upswing from 2021 only, it is estimated that the spending which was $150784 million in 2021 will shoot up to $150784 million in 2023, a tremendous 31% increase.
Of the total worldwide spending on digital advertising, social media advertising is expected to continue the trend of being the highest share bagger.
Classifieds Advertising Spending
Classified advertisements are one of the first forms of advertisements we came across, those little small square and rectangle boxes in our newspapers right? With the breakthrough of the Internet, the classified advertisements market for print is pretty lopsided but it is entirely different when it comes to Online classified advertisement markets as the numbers give confidence to the Businesses and users for online space.
The total spending on online classified advertising in 2021 stood for close to $23095 million worldwide and it is estimated that this number will climb to $25039 million in 2022 which is around an 8% increase year on year from 2021, and for 2023 the estimated online classified advertising is $26143 million and it is about 4% rise over 2022 figure.
The trend seems to be similar to other forms of advertisement that we saw above but in the opposite direction.
The projected numbers for others is showing a potential decline of about 12% in 2023 from the base year of 2021, on the other hand, projected spending on online classified advertisement is showing promising results with a potential 13% rise from the 2021 base level.
Search results advertising spending
In the Internet marketing domain, search advertising implies placing online advertisements on web pages that can be listed from search engine keyword searches. There are various ways in which advertising activities can be measured and tracked and based on all these the projected internet advertising spending shows very heartening results. First, let’s just name the measuring techniques for search engine advertising and they include Cost per thousand viewers, Click-through rates, cost per action, cost per click and total minutes. Now let’s get to the numbers.
The total spending on search engine advertising in 2021 stood for close to $146789 million worldwide and it is estimated that this number will rise to $165927 million in 2022 which is around a 13% increase year on year from 2021, and for 2023 the estimated search engine and keywords advertising are $179074 million and it is about 8% rise over 2022 figure.
Of the total spending on digital advertising, search engine advertising takes the second-highest share and it is expected the trends to continue.
Other – Advertising Spending
Other sections include the other forms of advertising apart from videos and social media. The numbers expected for this section is pretty interesting as the numbers show a decline. This signifies that the total internet advertising spending although increasing overall is decreasing in other sections, so it directly points out that the major chunk of advertising spending is going into online videos and social media.
The total spending on other advertising in 2021 stood for close to $28567 million worldwide and it is estimated that this number will fall to $27490 million in 2022 which is about a 4% decline year on year from 2021, and for 2023 the estimated internet advertising on others is $25096 million and might be around 9% fall over 2022 figure. So, in effect, the spending is projected to fall in 2023 from 2021 figures by about 12%.
Spending comparison by the top 5 countries
Digital advertising spending is the highest in the United States of America where it was almost $192456 million, then it was followed by China where the overall digital spending stood at $105,358 million. The third spot was bagged by the United Kingdom where the spending was $28584 million, the fourth spot was occupied by Japan where the spending was $22865 and the fifth spot was held by Germany with the share of $13586 million in the total spending for the year 2021.
As we have seen in the data and analysis above, the market is expected to rise like anything and the coming decade is going to be digital like it was never before and especially in the next 2 years, the total spending on digital advertising is set to rise by miles.
