With the prominence of continuously innovating technologies and its algorithms, growth of advertising expenditure was fuelled primarily by digital transformation, as stated by Eileen Yu on her article, it is where advertisers were investing in technology and data to enhance their relationships with consumers. Revenue shifts from traditional channels to their digital counterparts particularly on broadcast and digital out-of-home. Since, digital platforms are very convenient in reaching consumers. According to the Datareportal, that there are 3.96 billion people across the planet use social media today, equating to almost 51 percent of the total global population. No doubt that these sectors will use social media and other digital platforms to get their target consumers. Now, seeing the growth of ad spend from 2017-2020, USA still tops the global market with almost USD$20bn additional ad spend from 2017's.
Moreover, the report says that there was an upward revision, from Zenith's growth forecast of 4.1%, which it attributed to surprise upsticks in several markets like Philippines, which is now among the top 10 new ad spend contributors. China on the other hand, with 22% of ad expenditure and would be the second-largest contributor next to US with 26%. According to Zenith's projections, it added that global ad dollars would climb by USD$77bn over the next three years with 2018 projected to see a 4.6% growth by year end. Digital's impact on the growth of ad spend is surprising and promising to the market sectors.
These growth in ad spending has an auspicious outcome to the industries' revenue with also the help of their strong online ad sales. Like in China, with a reported 43% climb in revenue and accounted for 65% of Tencent's total revenue.
A company can't stand longer without advertisements of their products and services, it's morelike a nutrient for the company to live and grow, which is why through the continuous development and success in technology enhancement, these companies probably find their great opportunity to connect and communicate effectively with their target mass audiences and consumers, shifting themselves from spending too much on ads posted in traditional platforms. Considering the number of social media users globally with up to 3.96 billion as of July 2020 and still rapidly increasing (Global Social Media Overview, n.d.).
The reasons why companies are shifting from traditional platforms and reassuring themselves to digital marketing — a marketing strategy which veers away from what we are used to, such as print ads, large billboards ads, TV commercials, and radio advertisements because of their obvious advantages. Primarily is the cost-effectiveness of these digital media sites. In the article, Digital Marketing in the Philippines, that the cost of advertising through digital media is a lot cheaper compared to traditional tri-media advertising.
Wherein a billboard leased in EDSA can cost P300,000 to P500,000 per month. A 30-second TV commercial can cost P500,000 to P800,000 in fact, about 4 to 20 billion pesos was spent by some big companies yearly on tv ads alone and a small image ad in a local newspaper would cost about P20,000 to P50,000. Whereas, for P500 the producers can reach as high as 120,000 consumers, a very large amount of money will be saved or can still make a lot of advertisements online.
It also added that digital marketing may be very cheap yet effective, with a well planned content, it can gain good engagement and reach all your target market. Target audience is their priority, to reach higher audiences and consumers as possible as they can, so with digital media marketing the producer can also engage with their consumers by getting their age group, gender, job title, location, interest, device, etc., (Digital Marketing in the Philippines, n.d.).
In another report, The Digital Marketing in the Philippines 2019, there were two factors triggering the popularity of advertisements on social media. The development of ad blockers, it prevents display ads from disturbing the consumers' browsing experience. Another is the Filipinos' acceptance and trust of brands online with 59% of Filipinos are connected according to Kantar's Study. (The Marketing Samurai, 2019).
Therefore, to sum up, the vitality of a company to continuously thriving always came from how effective was their advertisements on the products and services to their target costumers that products are made to serve people’s needs and digital marketing lets consumers know about these products and since it is where they'll be able to show off their products. Moreover, the success of companies have an specific impact to an specific country that will also be reflected to the global economy or the country"s economic status. The higher the profit they will have, the better the economy a country will also have.
This is good article. Advertising is the key factor among the things that uplift the business in any country.