Dec 2, 22 | 3 min read
advertising investment begins to recover
Reading time: 3 minutes
The Standard Media Index (SMI) October report shows that after 5 consecutive months of decline, spending on commercial advertising has reversed this trend.
However, even though this growth is slow, it is seen in a very positive light, especially during this holiday season.
Below you can see a graph showing the evolution of advertising investment in recent years:
In October, for the fifth consecutive month, ad spending was lower than the previous year, however, the month's spending outpaced that of all other months in 2022.
The report covers more than just online ads. It offers detailed data on key media types such as:
Television;
OTT;
Out of Home;
Printed;
Digital.
What type of media are companies investing most in?
Below you can see in detail the evolution of advertising spending this year, broken down by type of media:
As can be seen, while digital media had a considerable increase of 5% compared to last year, spending on linear TV, Radio and Magazine was reduced by 15%, 10% and 12% respectively , in October 2022.
Another interesting fact is the considerable suriname email list increase of 30% in Out of Home media (For example: billboards, posters, airports, subways, among others).
For this type, the sectors that led the investment were:
Outfit;
Automobiles;
Media & Entertainment.
In addition, there is a considerable growth in investment in newspapers, resulting in a 13% increase compared to October last year.
What types of products are receiving the most investment?
In October, four product categories saw their highest investment in the same month since 2017.
They are:
Restaurants
Clothing & Accessories;
Pharmacy;
Trips.
The Technology, Entertainment and Media and Wellness sectors saw the largest declines in advertising spending.
How are the major media companies doing in October?
As investment in Digital Search and Linear TV declined, profits at the largest media companies also declined.
This drop in searches caused Google — for the first time in history — to reduce its advertising revenue in October.
The other four media companies that lead the market (Comcast, Disney, Paramount and Fox) also experienced significant declines in advertising revenue this month.
What to expect at the end of this year?
The data provided by the SMI report provides valuable insights into the current advertising landscape around the world.
The events of recent years still strongly reflect the global economy and, consequently, how much companies are willing to invest in advertising today.
At the same time, we can view the October figures with some optimism, as their performance broke the 5-month decline and surpassed the highest mark reached in 2022.
A survey conducted by the Association of National Advertisers (ANA) has predicted a significant increase in advertising spending for the end of the year.
Their analysis is based not only on the historical maximum of this period, but also on the main events of the end of the year, such as: the World Cup, the American elections and the population's holidays after a long period of quarantine .
It is important for marketing professionals to view this reduction in advertising investment with optimism, but caution and, above all, a lot of creativity are required to take advantage of this period and achieve results that exceed expectations.
And here I leave an invitation to companies that want to go further in their marketing strategies.
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