ADVERTISING may be on the road to steady recovery, globally, after the pandemic-induced turbulence it went through in the Year 2020. The previous year was, undoubtedly, a challenging one for the entire digital advertising space, with even the biggest players, such as Google, not immune to the dwindling revenue experiences of players in the sector, as a result of the public health crisis.
For instance, a recently-released report by Finaria.it, revealed a rise in the revenue of the largest segment of the digital ads industry, the global search advertising, by 6.7% year-over-year to $152.6bn in 2020. The increasing trend, the report says, is set to continue in 2021, with the entire market reaching $171.6bn value, $19bn more than a year ago.
The report also predicted a jump in the mobile search Ad Revenues by 16% YoY to $86B
“Thousands of companies, especially the big ones, have been hit hard by supply chain disruptions and customer challenges caused by the pandemic.
“To cope, many of them stopped their digital ad campaigns and reduced search advertising bids in the first half of 2020. As a result, cost per acquisition (CPA) and cost per click (CPC) were down across verticals and markets,” the report added.
The shutdown in the travel industry, was also identified as a major factor , since the industry spent most of its advertising budget on search ads before the COVID-19 pandemic.
According to the report, in 2019 alone, brands and media buyers spent $142.9bn on search advertising worldwide, more than social media, video, and banner ads combined.
“In 2020, this figure jumped by almost $10bn, despite the sharp fall in ad spending in the first two quarters of the year.
“Statistics show the global search advertising revenues are expected to jump by 12.4% in 2021. The increasing trend is set to continue in the next few years, with search ad revenues reaching $211.4bn by 2025.
“Mobile search ad revenues are forecast to jump by 16% and hit $86bn this year. By 2025, this segment of the search advertising market is expected to hit a $120.2bn value,” the report stated.
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