2020 recap: Corona lowers ad spend and boosts digital


#Covid19 has been portrayed as accelerator of previous trends. This is clearly true for the shift to digital advertising & online sales. Some of the latest:

  • Global ad spend will decline by 7,5% in 2020 to ~$585bn. This is still better news than the -9,1% expected in July of this year (Zenith)
  • However, digital spend will increase by 1,4% in the same period – pushing the share of global digital advertising to >50% for the first time (Zenith)
  • Amazon ‘s hiring spree is visible proof how ecommerce has been benefitting this year: They added an average of 1.400 employees per day
  • Another prominent example is : Not only did their ecommerce rev share almost double in DE (16,2%) but they also decided to discontinue their paper catalogue after 70 years!

Measuring effectiveness follows: Analyx® clients have broken down digital channels more granularly and also derived the optimal budget allocation separately for pushing offline and online retail.

Do you have transparency on ad effectiveness in eCommerce vs. offline?
Are you starting to see diminishing returns in digital?