Global ad spend, switching customers and B2B digital experiences: 5 killer stats to start your week

Marketing News

1. Global ad spend to grow 6% in 2020

Global investment in advertising is forecast to grow by 6% year-on-year in 2020 to $656bn (£511bn), buoyed by spend on Google, Facebook and Amazon.

That growth is up on the 2.5% rise estimated for 2019, but down on the 7.3% growth recorded last year.

The expectation is that eight product categories will increase investment ahead of the global rate: financial services (11.8%), household and domestic (10.5%), transport and tourism (9%), telecoms and utilities (8.5%), technology and electronics (8.4%), alcoholic drinks (6.9%), automotive (6.8%) and soft drinks (6.5%). The retail sector is expected to post the slowest growth, at just 2.6%, although this is its fastest rise since 2013.

Internet is the fastest-growing ad medium for every sector except tech and electronics, where outdoor will see the fastest increases at 11.4%.

Overall, internet formats are expected to account for more than half of ad spend for the first time next year, worth $336bn (£262bn). Performance marketing, online video and social media are driving this growth.

Source: WARC

2. Six in 10 customers have switched brands in the past year

Some 61% of customers have switched brands in the past 12 months, with 57% in search of better value and 31% looking for a brand that better reflects their personal needs. The majority of shoppers have switched their shampoo brand (26%), energy provider (26%) and supermarket (18%).

Of those surveyed, 3% have switched their bank account to Monzo, 7% have switched their mobile provider to Sky Mobile and 25% have switched their supermarket to Aldi.

Over half of consumers (57%) have already bought from a startup company, in particular younger consumers, those with children under 18 and those from higher-income households.

The most significant driver to switch to a startup brand is genuineness (31%), followed by innovation (25%) and the ability to reflect the consumer’s values (17%).

Source: DMA/Paragon

3. A third of B2B marketers deliver a ‘poor’ digital experience

Almost a third (30%) of B2B marketers admit they deliver a poor digital experience, despite saying that by 2025 the vast majority of their revenue will be derived from websites they own and operate.

Although 82% of B2B marketers agree their website is an indispensable asset, some 59% say they are being held back by legacy systems.

A further 54% believe their digital ambitions are being hampered by “disjointed tech”, while 50% identify the lack of funding available to execute digital transformation projects as a major issue.

Source: Episerver

4. Online retail sales slump as retailers search for new season boost

Online retail sales rose by just 0.6% year-on-year in September, as a summer of slow growth, the new school year and change of season all failed to give retailers a much-needed boost.

After a strong August, clothing recorded its first negative growth in over two years, down 1.2%, with the poorest performance in sales of menswear, which fell 22.5%. Sales of womenswear declined by 13.3%, footwear by 9.8% and accessories by 9%.

Sales of electricals dropped by 15.5% during the period, while sales of gift items were down 18.2%.

Elsewhere the picture was brighter, with sales of health and beauty up 16.4% in September, while the warmer weather at the start of the month caused sales of beer, wine and spirits to increase by 15.3%. The home and garden sector also saw a slight boost in September, with sales rising by 1.22%.

Overall retail sales in September were 0.1% above the three-month average (excluding travel), although performance failed to match the six-month (2.3%) and 12-month (5.3%) rolling averages, and was well below the five-year average (10%).

Source: IMRG Capgemini Online Retail Index 

5. Businesses prioritise customer satisfaction over branding and innovation

Businesses are prioritising customer satisfaction and loyalty over branding or innovation in a bid to attract and retain customers.

Some 57% of businesses say they are focused on customer satisfaction and loyalty, ahead of 37% who are focused on product development and innovation. Just 33% say that branding, including positioning and differentiation, is a focus for their business.

Globally Germany is the country with the highest emphasis on consumer satisfaction, with 71% of businesses saying they are focused on becoming more customer-centric, compared with 48% of organisations in China.

However, in the UK 56% of organisations say they are focused on market/customer segmentation, versus 50% that prioritise customer satisfaction.

Just 12% of respondents said that in the year ahead their most important goal was to in-house marketing communications.

Source: B2B International

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