No one was prepared for what 2020 had in store for businesses, especially for digital advertising ventures. When the lockdown shut down the world in the spring, 66% of digital marketing companies experienced decreased revenue.
But when social distancing measures across Europe forced businesses and citizens to shift to online activities, the Internet traffic increased abruptly, and therefore, the digital marketing companies had more service requests than ever. As businesses figured out that they need to focus their marketing and sales efforts to the online medium, they also understood how vital it is to work with digital advertising specialists to build campaigns that help them stand out in their respective industries.
The increase in Internet traffic was directly proportional to the revenue, digital advertising companies registered. For example, France’s digital media revenue reached $4.3 billion, and digital search revenue in the UK reached $11.31 billion in 2020. The UK, France, Germany and the Russian Federation are among the top 10 countries with the most web traffic in Europe, with The UK at 6% and Germany at 5%. Considering the record revenue digital marketing businesses registered last year, it’s not wrong for them to believe the future is bright. Statista reveals that ad spending in the digital advertising industry is set to reach $78,995m this year, with the market’s largest sector being search advertising that will hit a market volume of $36,538m, by December.
In 2021, companies spend on average $116.83 per Internet user, and by 2025, 50% of the total ad spending in the online marketing industry will be induced through mobile devices.
2021 still holds some economic uncertainty, but digital advertising leaders state that their ventures are remarkably resilient. A CallRaild survey of 167 global online marketing companies says that most businesses in the industry finished 2020 with higher annual revenues than in the previous year. These companies are also confident that they won’t fail to generate new leads and close new businesses in the following months, even if the new European regulations impact the European digital market starting in January. If you want to check the information from reliable sources please visit the reliable UwOnlinePagina directory that allows you to compare websites and identify those that go deep into the matters that interest you.
What does 2021 hold for digital advertising ventures?
The pandemic triggered a considerable drop in advertising spending. The most interesting thing that happened is that it looks like the advertising industry didn’t follow the rule of thumb in the marketing sector that states that ad spending follows the movement in GDP for the first time in many years. COVID-19 forced a change, and the pandemic led to an immediate drop and later increase in advertising spending. Towards the second part of the year, we witnessed a deviation from the principle that businesses first cut marketing budgets during recession times. The forecast predicts that the market will experience a 5,8% recovery from its initial drop.
Online marketing agencies financial outlook is strong for 2021
The CallRail survey states that 88% of companies are satisfied with their revenue, and many expect their financial health to prosper this year. The pandemic triggered a shift in digital channels that caused an increase in business in the online marketing domain. Because companies focus strictly on digital advertising, online marketing ventures have more businesses. And because the pandemic doesn’t show any sign of slowing down shortly, everyone anticipates that 2021 will maintain the trend.
Even the companies that experienced a decline in income during the first months of the pandemic are expected to perform better this year. The organizations that mix online and offline advertising are forced to look at their operations and decide what marketing strategy works best for them. The companies that focused their marketing efforts online became more profitable during the pandemic.
The lockdown offered European businesses the opportunity to think about their business direction and the audience they target. Based on their conclusions, they made educated decisions to maintain or move up their prices. The access to the Internet and reliable resources like BestWebsiteLinks also eased their work because they could base their decisions on solid data.
Advertising agencies deliver strategic value to their clients
Marketing agencies are seen as strategic partners in the present environment, and through their services, they can deliver strategic value to the organizations they serve. The CallRail survey also revealed that 67% of marketing leaders think their clients chose them because they provide strategic benefit as partners. The business relationships’ longevity is a factor that makes digital advertising companies believe their clients will continue to use their services in 2021. Over 69% of companies have long-term relationships with their clients (over two years). Less than 4% of agencies stated their client relationships ended earlier than one year.
Advertising agencies think they can deliver value to their clients in the following months because they had real results during 2020. They earn new contracts and leads by providing results to present clients. They do competitive research to identify the best methods for promoting the brands they work with and break the industry’s mould.
2021 isn’t free of challenges
Even if most digital advertising companies performed excellently last year, challenges remain in 2021. The CallRail survey reports that agencies consider attracting new clients and increasing the revenue from existing customers, the main two challenges they need to face. The pandemic made it more difficult to find new clients, retain older ones, and grow revenue for existing customers. But they are confident they learnt from the lessons 2020 provided, so they can generate new leads and retain loyal customers. Why are they so confident? A mix of employing methods that help companies grow business and providing clients with strategic value makes them trust their forces. The agencies with a robust referral program in place can quickly grow their businesses because their clients recommend them as valuable partners in the fight to stand out on the market.
No one can predict how 2021 will evolve, but the grass looks greener as we say goodbye to 2020.
