Welcome back everyone, it's been a whole month since the last #InTrends issue. I hope you all had a wonderful vacation, NYE celebration, and—most importantly—a determined start to the year.
I prefer to focus this issue on growth ideas supported by last year's overviews, trends, and results.
Let's start with Group M's, a media company, global ad spending outlook from 2014 all the way to 2027 projections.
- From 2022 all the way 2027, despite economic volatility, global advert spending is going to grow at an average of 5% annually.
- Last year saw a 6.5% YoY growth in advertisement spending, with 2023 projected to see an average increase of 5.9%
- On the other hand media investment company, MAGNA, places 2023 growth rate at 4.8%, downgrading it from an earlier projection of 6.3%
- Traditional media companies’ ad revenues grew by 2.5% in 2022, while digital media companies’ revenues increased by 9%
- Digital advertising will grow by 8% this year and account for 65% share of total ad sales
- Audio ad sales will be relatively flat (+1%) this year after a 4% rise last year, as a climb in digital audio advertising will only slightly offset a decline in broadcast radio ad revenues
- For 2022, MAGNA reports newspaper adverts declining by -3% and magazine adverts by -4%, while they believe 2023 will witness a further drop of 3% combined. On the other hand GroupM believes print-based media will decline by 3.7% this year
- Social media ad revenues climbed by just 4% last year after recording rates in the 20-35% range in the 3 years prior. This channel will recover somewhat this year, but only to a projected 7% increase.
Next let's jump to research house, Marketing Charts' take on the challenges brands are facing in reaching their target audience. Their findings are based on a small survey of 316 marketing executives.
- 54% of marketers said they are facing issues identifying customers' needs based on their data and habits
- 53% stated that they are facing challenges in ensuring a personalized experience
- 42% can't guarantee that the right message is reaching their target audience
- 46% of respondents find it challenging to express empathy in their ads. With 44% are struggling to strike the right emotional tone given what may be happening in the world
Do you have an AI strategy?
Salesforce, a software provider, surveyed 8,000 markets from 35 countries, working in companies of various sizes across B2C (50%), B2B (25%), and B2B2C (25%) business models.
- 68% of markets have a well-defined AI strategy in 2022, up from 60% in 2021 and 57% in 2020
- Some 89% use AI to automate data integration, while 88% use these applications to personalize the customer journey across channels, and around 88% for process automation, such as reporting
- 87% are leveraging the technology to bridge online and offline experiences
- 88% of respondents believe marketers are under pressure to make good use of AI
