Advertising has evolved over hundreds of years to become a key driving force behind the modern economy, and the third decade of the 21st century will see the industry enter a new age of technological possibilities. Virtual and augmented reality will bloom as advertising gets a face-lift, with outdated approaches destined for the scrap heap.
To paint a better picture of the current landscape and identify growing trends within the industry, we pored through an array of reputable advertising studies. We then used that information to compile this authoritative list of advertising facts and statistics.
Did you know that the first-ever TV advertisement was for watchmaker Bulova, broadcast in July 1941? Or that the first radio commercial lasted for 15 minutes? Here are some more interesting advertising facts you can wow your friends with at your next cocktail party!
Online advertising is a booming industry with plenty of opportunities for businesses to grow and thrive. It has significantly grown over the past several decades and taken over the good old television. Here are some statistics that show how advertising has changed with time.
Even though both companies’ market share is declining thanks to competition from companies like Amazon, Google and Facebook remain the two most dominant forces on the market. In 2021, the two companies boasted 28.6% (Google) and 23.8% (Facebook, including Instagram) digital ad revenue, accounting for more than 50% of all ad money in the US.
(Search Engine Land)
This shows the advantages of ranking organically instead of paying Google to pin your page to the top of search results. Not only do most users ignore sponsored search results but they’re also more likely to distrust the brand that’s advertising itself in that way.
Trends over recent years have shown that well-crafted, compelling video content is among the most powerful online advertising tools. People remember videos for longer and share them more frequently than they do other media. That’s why creating unique video ads should be a key part of your marketing strategy.
Advertising fast facts indicate that customers are indeed hasty to abandon their online shopping carts. This is a big issue for online businesses since a total of 81% of users never return to finish shopping after they initially abandon their cart. To tackle this problem and reduce the number of abandoned baskets, you might want to look into some tried-and-true cart abandonment solutions.
While some people are loyal to certain brands, most potential customers prioritize the best products and the lowest prices over brands they know. This is one reason the market is more competitive than ever before and explains why quality internet advertising is vital to any business’s success.
Consumers don’t necessarily hate all advertisements: Most wish that they could just filter those they don’t want to see instead of blocking them all. The problem lies in intrusive, bad ads that ruin the user experience, which is why a smart approach to designing and implementing ads is becoming increasingly important.
(Small Business Trends)
One of advertising’s least fun facts is that almost 50% of all small businesses have suffered a cyber breach in 2018. These companies usually have minimal security infrastructure and are easy prey for data sharks. Cyber attacks can be extremely destructive, which is why both large and small companies should do everything they can to protect themselves.
When it comes to pay-per-click investment on internet ads, businesses usually make double what they spend on Google Ads. If your company’s return is significantly lower than this, maybe it’s time to make some tweaks. The average click-through rate on paid search ads using Google Ads is about 2%.
Customer reviews also influence 67.3% of purchasing decisions. Interestingly, people trust them as much as personal recommendations, which makes them extremely important for all businesses, especially those oriented toward local customers.
The total amount of money spent on digital ads has been rising over the years, even though the rate of increase has fallen slightly. Experts predict that over the next two years, this spending will increase by $121 billion.
Advertising facts suggest that marketers are slow to act on behavioral user data. This is because they mostly use older technologies to drive consumer segmentation. Marketers also believe that companies are still struggling to translate the collected behavioral data into better, more customized user experiences.
Statistics about small and medium businesses show that the most competitive PPC keywords relate to the financial and legal industries, as well as insurance services. These types of businesses spend more than $1.2 billion per year on PPC advertising on Google.
Research by Havas shows brand engagement is extremely important for consumers. People want content that engages them through storytelling, provides useful solutions, and creates entertaining experiences. Since a single moment of brand disappointment was shown to result in 47% of consumers giving up on a brand altogether, it’s critical that marketers create content that’ll resonate with their target audience.
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Did you know that YouTube has over 2 billion monthly users? That’s more than a quarter of the world’s population! Every day, those users watch over 500 million hours of video content. Clearly, YouTube is an expanding platform with a lot of potential for businesses and advertisers. Below are some telling YouTube stats that show just how effective video advertising can be.
(Think With Google)
As the second-most-visited site on the internet and the main platform for Google video ads, YouTube has experienced spectacular growth. In 2015 alone, 18-to49-year-olds spent 4% less time watching TV and 74% more time watching content on YouTube.
(Think With Google)
YouTube has proved to be a remarkably important web advertising tool for consumers who seek to better inform themselves before choosing a product to spend their money on. With more than 2 billion monthly users and a huge number of content creators, there is always an expert opinion to be found on any product or service worth buying.
According to 2021 Statista research, smartphones are a major entry point for internet access in many markets across the world and have also become the most popular device for watching video content. Almost a quarter of the world’s population will watch a video on a phone this year.
This is one of the most startling online advertisements vs. traditional advertising statistics, seeing that TV ads only get attention 45% of the time. Television ads simply last too long, and TV watchers regularly check their phones during breaks in sports games and other televised events.
Given that YouTube’s sophisticated advertising tools can successfully analyze your target audience and reach the most valuable potential customers, it’s no surprise that the number of small and medium-sized businesses creating online ads for YouTube is rising steadily.
(Think With Google)
In the digital age, customers are increasingly using video content to inform themselves before making purchases. This trend of researching other people’s opinions and experiences gives good products exposure and helps increase revenues.
The social media ecosystem is becoming increasingly complex, offering much more than a convenient way to connect with friends and family. Using social media platforms for marketing purposes can be extremely effective, but only if you employ the right strategy. That’s why in this section, we’re bringing you the latest social media advertising stats that’ll assist you in making better-informed advertising moves.
Social media platforms have proved to be a potent market for advertisers. The steady increase in the number of users in 2021 indicates that the peak of investment in social media is still to come.
(Business 2 Community)
With the astronomical rise of the “Stories” feature on Instagram and similar social media networks, advertising online has never had a bigger reach than it does today.
Engagement rates are a key metric for any social media platform. They show how popular a post is and can help you get more followers, boost your reach, and grow your business.
Interestingly, about two-thirds of these visits come from people who don’t already follow the profile. This shows that investing in Instagram advertising has huge potential for attracting new customers.
Social media can be a great tool for increasing brand engagement and attracting new customers. One of the best ways to achieve this is to offer outstanding customer service via your social platforms. A good reputation among users and their word-of-mouth recommendations will help you lower your internet advertising costs, allowing you to invest the money you save into other things.
As far as advertising stats go, this is a real punch in the guts. It can be easy to think you’re doing a good job from inside your office, but it’s your customers’ opinions that really matter. Don’t overestimate the quality of your customer service, and most importantly, don’t ignore what your customers are telling you.
This is one of the more impressive Facebook advertising facts. The number of businesses that advertise on the platform reached 10 million in the third quarter of 2020.
Facebook (including Instagram) received nearly 87% of US social media video ad spending in 2018. That same amount translates to one-quarter of all US video ad spending. It’s a crowded market, but as video ads grow, Facebook continues to be a popular channel.
This shows that videos are by far the most engaging posts on Facebook. Video content engagement has been rising, while engagement with original and stock photo content, link posts, and status posts are on the decline.
This spending is predicted to grow 17% in 2022, reaching $134 billion, making social media platforms even more powerful when it comes to reaching new customers across the world.
Social media has taken over the world, and marketing investment in these platforms has increased rapidly. In 2022, social media advertising spending will grow 27.9% on mobile and 21.7% on desktop compared to 2021.
It’s also worth noting that customers on Twitter want brands to respond to their tweets sooner. At present, it takes about 10 hours on average for businesses to respond to tweets. Customers, however, expect a response within four hours.
Although social media marketing is on the rise, that doesn’t mean TV advertising is dying out. On the contrary, it’s still very much alive and kicking. The reason behind its continuing popularity is simple – it works.
Whether in the short or long term, television still delivers a great bang for your advertising buck. It’s one of the lowest-risk methods of investing in advertisement, with a high likelihood of profit return: 70% between three and six months, and 86% over three years.
TV remains the best form of advertising for cashed-up marketers willing to spend large amounts on ad campaigns for mass audiences. However, as those audiences shift to digital media and advertisers pursue more multichannel campaigns, it’s getting tougher to make TV work for your business. That’s why it’s unlikely that TV advertising spending in the next five years will exceed prepandemic levels of financing.
The amount of time 18-to34-year-olds spent watching traditional TV – both live and time-shifted – in Q3 2020 dropped 23.4% from 2019. Younger people are watching less and less television, which is bound to have a negative impact on TV advertising effectiveness.
Television remains one of the best media for marketers to use product placement and other subtle advertising strategies. When you consider that people watch nearly five and a half hours of video per day, TV’s effectiveness makes sense.
Using mobile platforms for SMS marketing has proved to be very efficient. In recent years, marketers have turned to mobile to generate leads, increase sales, and improve customer engagement through banner advertisements on mobile websites and ads in downloaded apps and games.
(Think With Google)
This is one of those digital advertising trends that shows how much consumers value search engines as a tool for helping them make smart purchases. People are turning to their phones for advice, however large or small their decision may be.
This information reflects the growing dominance of mobile devices compared to desktop computers, with up to 57.4% of total web traffic and over 50% of digital ad spend now taking place on mobile. The most attractive spaces for advertisers to place their ads were search results and social media platforms, as well as mobile games.
Targeted advertising facts show just how profitable mobile marketing can be as part of a cohesive brand strategy. Now, 71% of marketers believe mobile marketing must be at the core of their business-development plans.
(Social Media Today)
This statistic shows the importance of making a good first impression on customers. What’s more, 18% of all local searches lead to a sale within 24 hours. It’s important to cater to your local clientele, as 72% of people who visit a physical shop choose one within five miles of their location.
(Hollywood Reporter, Statista)
With $120 billion spent on mobile marketing in 2020, the US is the leading mobile advertising market in the world. China comes in second, while the UK holds the third spot.
Taking advantage of email marketing services has helped many small businesses reach their customers. According to the latest targeted advertising statistics, email is still one of the most effective channels for customer acquisition and retention.
This astoundingly high return rate has to do with the low cost of implementing email campaigns, which is what makes this one of the most effective advertising solutions out there. It’s worth noting that since the arrival of the European Union’s General Data Protection Regulation in 2018, this figure has likely declined for businesses that serve customers in the EU.
This is one of those facts about advertising that you absolutely shouldn’t ignore. Spicing up your emails with animations, videos, and interactive content is becoming increasingly important in boosting customer engagement.
It turns out your loyal customers do like to hear from you, and their preferred method of receiving business news is via email. If you take advantage of this, you can build brand loyalty through quality weekly content.
Depending on your industry, sending out daily email marketing campaigns may not always be a bad thing. Research shows that 13% of businesses send emails every day, while 26% send them several times per month.
People are much more likely to see an email from a business than they are to see a social media post. This is especially true when it comes to mobile devices, where a larger percentage of users still keep their email notifications turned on.
TV and digital advertising statistics above show beyond doubt that this industry is in a state of rapid flux. As marketers adapt to technological advancements, a whole new world of possibilities has opened up. Advertising is more competitive than ever before, and you need to be on top of your game if you want your business to stand out from the crowd.
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