In “Economic uncertainty comes for the advertising industry,” Insider Intelligence’s Daniel Konstantinovic lays out how the economic woes of the world are reaching the ad industry. “Tech giants, ad agencies and brands are all preparing for an industrywide downturn – but how severe it will be is unclear.”
It’s another wake-up call for advertisers and marketers to embrace or double down on the accountability and performance-oriented nature of digital advertising. Those who do can expect new efficiencies to help offset some of the dark clouds on the economic horizon. In fact, beyond advertising, marketing and media, the benefits of digital transformation will help a wide spectrum of companies across a variety of industries operate more efficiently and insulate themselves against the recession that may lie ahead.
Worries related to consumer spending are fueling concerns within the advertising industry, according to the article. It cites how household consumer spending had its first month-over-month decline this year in May, how one in five marketers have cut their spending and how the looming recession may affect different sectors in different ways. Automakers have reduced spending as of late, but airlines and others in the travel sector are countering this trend by launching campaigns and spending again, for example. On the Big Tech front, Meta, Snap and others face new challenges, and the ripple effect is causing advertisers to flee and other social media giants to feel the impact. Lots of insights and perspectives make the brief article a worthwhile read.
Despite all the doom and gloom, eMarketer and Insider Intelligence still forecast solid growth in total media ad spending for this year and continued growth thereafter. “Despite the sour economic vibe, we still expect total media ad spending to stick close to its current growth trajectory of 13.2% year over year.” Those growth projections slow in the four years to follow, but they still project growth.
Digital experts drive efficiencies
Although digital media behemoths might fear the worst, the promise of digital holds answers for marketers and a wide variety of organizations. Advertising intelligence technology companies help advertisers make smart investments and drive solid returns; so don’t expect the likes of Skai, Kantar or Adthena to falter as advertisers need to spend smarter and technologies like these can help them do it. Digital-minded agencies are also positioned for success as they hold the keys to smarter campaign management and help marketers embrace digital capabilities in TV, audio, search and a wide range of other very accountable media channels. Tampa Florida’s Chacka Marketing, for example, champions the use of Connected TV and embraces the many under-utilized but game-changing capabilities available to advertisers, including loyalty benefits in Google Shopping and the use of custom goals in Discovery campaigns.
Digital transforming operations globally
Those who embrace digital can insulate their organizations to some degree by limiting the negative impact of a looming recession and economic turmoil by infusing new levels of efficiency, and the promise of digital reaches far beyond the marketing department. Many of the world’s top professional services and consulting firms that have long sung the praises of digital transformation have begun to raise the volume as of late as the global economy braces for recession.
Top providers like CIOX Health and UnitedLex have long been helping healthcare organizations and law firms and legal departments tap into the many significant benefits of digital transformation. Though the benefits of digital transformation have been well established for many years, look for these proven partners to help even more organizations weather tomorrow’s economic woes as a recession looms.
Is your organization well-positioned to guide others through digital transformation to better meet the demands of tomorrow? Contact PR Return today to find out how a PR program that educates the market and introduces your brand to more prospects can help drive growth. Like all those tech companies helping major consumer brands make smarter marketing investments as consumers worry about spending, we can bring new levels of efficiency and effectiveness to your marketing efforts while driving awareness of all you can do to help companies effectively embrace digital.