The consumer shift to digital media has accelerated in the past 12 months, with online channels now set to take a greater share of retail, and TikTok’s expansion into social commerce being an even greater challenge to established platforms such as Facebook.
These findings from WARC, the international marketing intelligence service, are included in the Global Ad Trends report: COVID-19 One Year On, which outlines the new, long-term shifts in e-commerce, social media, online video and gaming for brands and consumers.
E-commerce: $900bn more was spent at online retailers last year
Nearly $1 trillion more was spent at online retailers last year, per the Mastercard Economics Institute, and the move to online retail has engrained long-term habits. Brands are investing more in e-commerce advertising, which grew far ahead of the wider online ad market last year.
This trend is set to continue even as high street footfall increases in 2021 and major players like Amazon become more attractive – data from Earnest Research show 59 per cent of new Covid-19 Amazon customers were still buying with the company at the end of 2020, the highest retention rate in American retail.
The growing popularity of ‘buy online for pickup in store’, which has seen over a quarter of adults in the US (26 per cent), Mexico (28 per cent) and India (33 per cent) using the service more, indicates flexibility and convenience will be a key consumer strategy in the future.
Social media: TikTok was the social winner of 2020
Driven by entertaining content, TikTok is now the social app with the highest level of user activity, having overtaken Facebook for the top spot in Canada (TikTok users spend 17 hours a month on the app), France (17 hours), the UK (20 hours) and the United States (22 hours), per App Annie.
Findings included in WARC’s Marketer’s Toolkit 2021, based on a survey of over 1,000 marketers, show that 44 per cent of brands expect to increase spend on TikTok this year, ahead of Facebook’s 39 per cent.
Online video: Linear TV advertising falls an estimated $34bn
Online video is eroding linear TV advertising and now accounts for a quarter (26 per cent) of the global video ad market. Digital platforms like YouTube are becoming more popular, with audiences now watching over 20 hours of mobile content each month, according to App Annie. More than a quarter (27 per cent) of YouTube consumption is via connected TV devices, which now poses a direct challenge to linear TV activity.
Audiences are less concerned with these distinctions, though, and care more about quality content than the delivery platform – one in five (20 per cent) consumers globally sees no difference between YouTube and linear TV consumption, per AudienceProject research. This rises even higher in the US and the UK, to 36 per cent and 27 per cent, respectively.
Gaming and eSports: Brands tap into sponsorships, mobile and celebrity collaborations
Gaming and eSports audiences grew rapidly last year, with streaming platform Twitch approaching three million monthly viewers worldwide. Audiences are also more receptive to advertising in exchange for in-game benefits, and gamers are 7 per cent more likely to buy from brands they have seen advertised, according to GWI. This rises to 15 per cent in Japan, 10 per cent in China and 9 per cent in India.
Esports sponsorship is expected to grow 11.6 per cent this year and top $600m for the first time, per Newzoo forecasts. The creative opportunities for brands extend beyond this, ranging from celebrity collaborations and partnerships. However, a third (35 per cent) of marketers say gaming is not an area of higher focus in 2021, suggesting a potential missed opportunity for some.
Robert Clapp, Senior Analyst, WARC Data, and author of the research, says: “The media disruption from Covid-19 was rapid and severe, but the data suggest that brands were largely able to adapt to the immediate shifts in consumer behaviour. The clear correlation between changes in user activity and advertising spend shows how digital media has benefitted.
The main takeaway for brands has been a greater focus on agility, innovation and effectiveness, a trend that is likely to perpetuate digital media’s rapid growth in 2021 and beyond.”
Consumer attitudes to advertising reveal a preference for TV over social media Included in this edition of Global Ad Trends is an analysis of consumer attitudes to advertising, digital media, brand safety, and data-driven targeting in the UK and the US, as measured by target audience company GWI in collaboration with WARC.
The latest research finds:
Regional findings from Global Ad Trends: Covid One Year On
Europe, Middle East and Africa
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