It is not a secret. Advertising budgets this year will go digital. The pandemic and the resulting conditions will end up benefiting digital channels where social networks such as Twitter, Facebook, Instagram or even TikTok will be especially favored.
In principle, it is necessary to understand the way in which advertising budgets are expected to move.
The figures speak of a market that visibly hit. According to the conclusions provided by WARC in its Global Advertising Trends: State of The Industry 2020/21 study, it would take years for the advertising market to recover the numbers it had before the health crisis.
On a specific basis, it is estimated that growth in this indicator will reach 2022; For the end of this year and with the progress that can be obtained at the end of the year, it is expected that the sector will barely reach the numbers registered towards the end of 2019.
During the following year, the forecast indicates that an advance of 6.7 percent will be registered, a percentage that will barely be enough to recover 59 percent of what was lost this year.
Thus, 2020 is expected to close with a 10.2 percent drop in advertising revenue, which translates to $ 63.4 billion in the overall value of the global advertising market.
Although digital will grow in investment about 7 percent and display advertising will do the same by 14 percent, during the first six months of the year, the reality is that it is not exempt from falls.
With these prelude figures, social networks will be one of the winning players, if we consider that since their birth and adoption in the advertising world they have promised great reach and visibility for investments that, compared to traditional media, are tangibly lower, when least in the short term.
At this point that seems inevitable, what is really interesting is to recognize how this budget will be distributed among the available networks.
Thus, a recent Hootsuite study becomes relevant, which indicates that among all the available social media platforms, Instagram will rise as the top winner in the distribution of the advertising budget.
In this way, Instagram will see a 61 percent growth in the budget that brands will allocate to their advertising solutions.
Behind the social network of stories, Facebook will be located, with a growth of 46 percent, YouTube with 45 percent and LinkedIn with 44 percent. Added to the list are Twitter with a growth of 26 percent and WhatsApp with 17 percent.
The reason for the dominance that Instagram will have is none other than the confidence of the marketing leaders around this platform.
And is that although 78 percent of marketers say that Facebook is the most effective social network to meet objectives, 70 percent give this qualification to Instagram.
It is true, Instagram belongs to Facebook but it operates as an independent network with its own growth and that has obviously remained in the shadow of the scandals that have stuck to its reputation.
Although TikTok was listed as the great promise, it is true that brands will increase just 14 percent more on this social network.
This platform is still a promise. A study by Kantar indicates that users who interact with Hashtag Challenges buy the brands with which they connect.
According to the study, these TikTok campaigns are capable of generating above-average earnings in various indicators:
Brand awareness: 5.1 percent more than average
Message association: 3.4 percent compared to the average 2.8 percent,
Brand acceptance: 4.6 percent compared to 1.8 percent
Purchase intent: 3.2 percent versus the average 1.8 percent
With these figures, there is no doubt that TikTok’s efforts to increasingly add brands to its ranks are not in vain and have great potential for success.
However, we are talking about a relatively young social network that, although it has positioned itself as one of the most popular, still has a lot to do to position itself in front of advertisers.