Are We In For A Digital Economic Slowdown?

Everyone knows the best way to start a year is with a bang, but this year has been off to a slow start compared to 2021.

The last year was a whirlwind of change and disruption, with the world of e-commerce being positively affected by Covid-19. And while the Swedish Trade Report e-commerce indicator for March shows that e-commerce has fallen by -17% for E-Commerce in Sweden, it's important to remember that it's only natural for such a decline after such a sharp rise as 2021 had.

Sales growth from January to March 2022 compared with the same period in 2021, in percent.

With that said, it is crucial to be aware of the market and its category as a whole to make conscious decisions, both about its marketing and its business as a whole. Some categories are more affected than others, and?you can read the full report here (in Swedish).

There is no indication that digital media spending has fallen in 2022 compared to 2021, but there is no access to equally local and detailed reports. A decrease in demand and a (what looks like) increased advertising spending means that competition has increased enormously.

What should I think about as a digital advertiser?

In this competitive environment, you'll have to make a decision: Be aggressive and increase your market share, or be passive and maintain your returns.

* Note that all figures are public figures about Sweden and the market in general. There are other exceptions to the statistics — some companies and categories are not affected and continue to grow.