The Return of Ad Spending in a Post-Covid World

       The Covid-19 pandemic took the world by storm in 2020, holding economies hostage and changing the lives of individuals around the world. Now, with cities and states re-opening, we can consider how and why this pandemic affected the advertising and marketing industries in order to understand what the ads landscape will look like as we return to a “normal” way of life.

 

        With concerns about the Covid-19 pandemic and stay-in-place regulations spreading during early 2020, it’s  not surprising that marketing budgets took a hit worldwide. This is not to say that every company automatically stopped advertising; while some brands pulled budgets entirely, others adapted their messaging or simply reduced budgets. In December of 2020, the global marketing intelligence service WARC announced that global ad spend had dropped approximately 10.2%, or $63.4 billion that year alone. The largest of these spending cuts affected the automotive, travel and tourism, and retail industries. However, many of these budget cuts were directed at out-of-home (OOH) advertising, like billboards and signs. As a consequence, other platforms became increasingly more conducive to attracting new customers at home – most importantly, digital marketing and advertising.

 

The Consumer x Brand ‘Meeting Place’

        Large and small businesses alike were frantic to keep their companies afloat. With stay-at-home regulations persisting, many businesses adapted towards a more digital focused business approach. Dustin Porreca, an SEO manager at Elevate Demand, explains the reasoning behind this with statistics from YouTube. “Clients have seen an average 68% increase in video content consumption on YouTube since March 2020” he said. “In any marketing strategy, your goal is meeting your buyers where they’re going to be at any given time.” This communal “meeting” place for buyers and advertisers was entirely digital during the Covid-19 pandemic, and in most cases, it was via social media. TikTok is a great example of a digital meeting place, with sponsored videos and ads being played intermittently throughout user videos. In fact, TikTok saw a 75% climb in usage throughout 2020, according to Pew Research.

 

         Given all of this information, where do the advertising and marketing industries go from here? Will OOH advertising budgets ever come back? Or will digital marketing be the only answer for advertisers going forward? We can investigate in looking at 2021 trends.

 

The Role of Digital in Messaging

          Advertising and marketing spend has grown considerably since Q4 2020. On the digital front, WARC predicts that 44% of brands are going to increase spend on TikTok advertising in 2021, and 39% on Facebook. OOH, on the other hand, is only forecasted to see a 19% bump. Even with this boost, OOH advertising spend will still net out 13% lower than in 2019. With this said, it appears OOH may recover eventually, but nowhere near the rate at which digital channels are recuperating lost revenue.

 

          One huge advantage digital channels have over traditional OOH is the ability to pivot and optimize messaging quickly, with very little spend wasted. And, during the pandemic, messaging has arguably been one of the most crucial pivots brands have had to make.

 

          Take, for instance, Visible’s “Visible Acts of Kindness” campaign, or “Isolated, Not Alone” by AVON.  Both campaigns were executed during 2020, and set a standard for other businesses to put the consumers intentions and safety over their own profits. American Express’ business and trends blog notes three primary shifts in consumer behavior that occurred during the Covid-19 pandemic: consumers being more conscientious, consumers embracing brand agnosticism, and consumers utilizing online venues for their purchases. This consumer shift not only affected  marketing strategies, but also the positioning and use of the product or service offered – which, sometimes, took a backseat so that brands could act on their morals, compassion, and empathy. For instance, Visible Wireless catered to these consumer mindset shifts in their “Visible Acts of Kindness” campaign by using social media to provide aid to 1,000 families in need. AVON partnered with domestic violence awareness organizations to conduct live video sessions to connect with those in need, and even issued government letters to push for higher visibility on the severity of the issue with new stay-at-home orders.

 

The Bottom Line.

          The Covid-19 pandemic has challenged individuals and businesses alike worldwide. While advertising and marketing budgets were slashed in 2020, we can observe consumer trends this year and last to make some predictions as to where brands will be focusing ad dollars as we exit the stay-at-home orders. Digital has reigned supreme over traditional OOH advertising over this period due to its ability to reach consumers at home and pivotable messaging. While OOH is regaining some of its momentum, it doesn’t look like it’ll overtake digital anytime soon.

 

This article was informed with information from our in-house analyst, Tim Carpenter

 

 

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Privacy Policy for UK & EU

Privacy Policy for UK & EU (Website)

Effective Date: 12/05/2023

This Privacy Policy governs the manner in which RTMUK Ltd. collects, uses, maintains, and discloses information collected from users (hereinafter referred to as “User” or “Users”) of the realtimeagency.com website (hereinafter referred to as “Website”). This Privacy Policy applies to the Website and all products and services offered by RTMUK Ltd.

  1. Personal Data Collection

1.1. Data Controller: RTMUK Ltd. is the data controller responsible for the collection, processing, and storage of personal data.

1.2. Types of Personal Data: We may collect personal identification information from Users in various ways, including but not limited to when Users visit our Website, register on the Website, subscribe to our newsletter, fill out a form, or interact with other activities, services, features, or resources we make available on our Website. The personal data we collect may include, but is not limited to, the following:

  • Name
  • Email address
  • Mailing address
  • Phone number
  • IP address
  • Browser information
  • Other information voluntarily provided by the User

1.3. Purpose of Data Collection: We collect and process personal data for the following purposes:

  • To personalize user experience
  • To improve customer service
  • To send periodic emails (e.g., newsletters, updates)
  • To process transactions or respond to inquiries
  • To comply with legal obligations

1.4. Legal Basis for Processing: We rely on the following legal bases for processing personal data:

  • The processing is necessary for the performance of a contract with the User.
  • The processing is necessary for compliance with a legal obligation to which we are subject.
  • The processing is based on the User’s consent.
  • The processing is necessary for the legitimate interests pursued by us or a third party.

    2. Data Retention and Security

2.1. Data Retention: We will retain personal data for as long as necessary to fulfill the purposes for which it was collected, unless a longer retention period is required or permitted by law.

2.2. Data Security: We implement appropriate data collection, storage, and processing practices, as well as security measures, to protect against unauthorized access, alteration, disclosure, or destruction of personal data and other information stored on our Website.

3. Data Disclosure and Sharing

3.1. Third-Party Service Providers: We may engage trusted third-party service providers to assist us in operating our Website or conducting our business activities. These third parties may have access to personal data solely for performing specific tasks on our behalf and are obligated not to disclose or use it for any other purpose.

3.2. Legal Compliance: We may disclose personal data to comply with applicable laws, regulations, legal processes, or enforceable governmental requests.

4.User Rights

4.1. Right to Access: Users have the right to request access to their personal data processed by us.

4.2. Right to Rectification: Users have the right to request the correction of inaccurate or incomplete personal data.

4.3. Right to Erasure: Users have the right to request the deletion of personal data under certain circumstances.

4.4. Right to Object: Users have the right to object to the processing of personal data in certain situations.

4.5. Right to Restriction of Processing: Users have the right to request the restriction of processing of personal data in certain circumstances.

4.6. Right to Data Portability: Users have the right to receive the personal data concerning them, which they have provided to us, in a structured, commonly used, and machine-readable format.

5. Cookies and Tracking Technologies

5.1. Cookies: Our Website may use cookies and similar tracking technologies to enhance User experience and provide personalized services. Cookies are small text files stored on the User’s device that enable us to recognize their browser and capture certain information. Users may choose to set their web browser to refuse cookies or to alert them when cookies are being sent. However, note that some parts of the Website may not function properly if cookies are disabled.

5.2. Tracking Technologies: In addition to cookies, we may use other tracking technologies such as web beacons, tags, and scripts to collect and track information about Users’ interactions with the Website. These technologies may be used for analytics, targeted advertising, and measuring the effectiveness of our marketing campaigns.

6. Third-Party Websites

6.1. External Links: The Website may contain links to external websites that are not operated by us. We have no control over the content and practices of these websites and are not responsible for their privacy policies or practices. Users should exercise caution and review the privacy policies applicable to those external websites.

7. Children’s Privacy

7.1. Age Limitations: The Website is not intended for use by children under the age of 16. We do not knowingly collect personal data from children without obtaining parental consent. If you believe that we may have collected personal data from a child without parental consent, please contact us, and we will promptly take steps to remove such information from our records.

8. Changes to this Privacy Policy

8.1. Policy Updates: We reserve the right to update or modify this Privacy Policy at any time without prior notice. Users are encouraged to check this page periodically for any changes. The revised policy will be effective immediately upon posting on this page.

9. Contact Us

9.1. If you have any questions or concerns regarding this Privacy Policy or our data practices, please contact us at [email protected]

Privacy Policy For US

Privacy Policy for the United States (Website)

Effective Date: 12/05/2023

This Privacy Policy governs the manner in which RTMUK Ltd. collects, uses, maintains, and discloses information collected from users (hereinafter referred to as “User” or “Users”) of the realtimeagency.com website (hereinafter referred to as “Website”). This Privacy Policy applies to the Website and all products and services offered by RTMUK Ltd..

  1. Personal Information Collection

1.1. Types of Personal Information: We may collect personal identification information from Users in various ways, including but not limited to when Users visit our Website, register on the Website, subscribe to our newsletter, fill out a form, or interact with other activities, services, features, or resources we make available on our Website. The personal information we collect may include, but is not limited to, the following:

  • Name

  • Email address

  • Mailing address

  • Phone number

  • IP address

  • Browser information

  • Other information voluntarily provided by the User

1.2. Purpose of Personal Information Collection: We collect and process personal information for the following purposes:

  • To personalize user experience

  • To improve customer service

  • To send periodic emails (e.g., newsletters, updates)

  • To process transactions or respond to inquiries

  • To comply with legal obligations

1.3. Collection of Non-Personal Information: We may also collect non-personal information about Users when they interact with our Website. This information is not personally identifiable and may include technical information about the User’s device, such as the type of browser used, operating system, and the referring website.

  1. Information Sharing and Disclosure

2.1. Third-Party Service Providers: We may engage trusted third-party service providers to assist us in operating our Website or conducting our business activities. These third parties may have access to personal information solely for performing specific tasks on our behalf and are obligated not to disclose or use it for any other purpose.

2.2. Legal Compliance: We may disclose personal information to comply with applicable laws, regulations, legal processes, or enforceable governmental requests.

  1. California Consumer Privacy Act (CCPA)

3.1. Rights of California Residents: If you are a California resident, you have specific rights regarding your personal information under the CCPA. These rights include:

  • The right to know what personal information is collected, used, disclosed, or sold

  • The right to request deletion of personal information

  • The right to opt-out of the sale of personal information

  • The right to non-discrimination for exercising CCPA rights

3.2. Exercising Your CCPA Rights: To exercise your CCPA rights or obtain more information about our data practices, please contact us using the information provided in the “Contact Us” section below.

  1. Children’s Online Privacy Protection Act (COPPA)

4.1. Children’s Personal Information: We do not knowingly collect personal information from children under the age of 13 without obtaining verifiable parental consent. If you believe that we may have collected personal information from a child under 13 without parental consent, please contact us, and we will promptly take steps to remove such information from our records.

  1. Data Security

5.1. Data Security Measures: We implement appropriate data collection, storage, and processing practices, as well as security measures, to protect against unauthorized access, alteration, disclosure, or destruction of personal information and other data stored on our Website.

  1. Changes to this Privacy Policy

6.1. Policy Updates: We reserve the right to update or modify this Privacy Policy at any time without prior notice. Users are encouraged to check this page periodically for any changes. The revised policy will be effective immediately upon
posting on this page.

  1. Contact Us

7.1. If you have any questions or concerns regarding this Privacy Policy or our data practices, please contact us at [email protected].

Please note that the provided Privacy Policy templates serve as a starting point and should be reviewed and customized to accurately reflect your business practices, applicable laws, and any specific requirements. It is crucial to consult legal professionals to ensure compliance with US privacy laws, including the California Consumer Privacy Act (CCPA) and the Children’s Online Privacy Protection Act (COPPA).