The World Faces A Recession, Yet Ads Are Still Running. A Look At Digital Ad Spend By Industry In 2020.
To sum up 2020 in one sentence: “what happened to our world!?”. We started 2020 with the COVID-19 pandemic, followed by many more unfortunate events around the world. These events literally made 2020 the year from hell, causing a global recession. Yet life still goes on, just like the digital ads in 2020.
Despite the world being in a recession, digital ads are still running. In this article we take a look at 2020’s digital ad spend by industry in Thailand. We’ve used information from Digital DAAT 2020 so that you can plan your digital ad budget more effectively. Let’s have a look at the advertising industry trends in 2020.
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The Most Popular Digital Marketing Platform in 2020
Without a doubt, Facebook was the most dominant social media platform for Thai people. Thirty one percent of all digital marketing was on Facebook. Facebook ad spend accounted for approximately USD 200 million. This was followed by YouTube ads, accounting for nineteen percent of all digital marketing, producing around USD 124 million.
You can use this data and apply it to your digital marketing plan. Let’s say the most popular platform has the most competitors, of course the cost of advertising will be increased too. So the point is, we are not telling you to stop using YouTube or Facebook for digital marketing, but there are many other mediums out there in the digital world that you should consider as well. These include Search Ads, Display Ads, Native Ads, Instant Messaging etc. In short, you should perform digital marketing in a variety of ways using different platforms.
Digital Ad Spend by Industry in 2020
One of the biggest pieces of news in the past few months was the announcement that General Motors (GM) will stop selling Chevrolet vehicles in Thailand. However, that did not stop the ad spend in Thailand’s automotive industry. The spend may not be higher than last year, but it is still considered a significant amount. In fact, it was the highest spending industry in 2020, which accounted for more than USD 85 million, or thirty one percent of digital marketing spend. Below is the digital ad spend in 2020 by industry:
– Skin care industry spent approximately USD 6 million which accounted for 10%
– Non-alcoholic beverage industry spent approximately USD 54 million which accounted for 8%
– Communications industry spent approximately USD 54 million which accounted for 8%
– Dairy industry spent approximately USD 47 million which accounted for 7%
– Retail industry spent approximately USD 31 million which accounted for 5%
– Banking industry spent approximately USD 28 million which accounted for 4%
– Insurance industry spent approximately USD 22 million which accounted for 3%
– Snack food industry spent approximately USD 21 million which accounted for 3%
– Real estate industry spent approximately USD 20 million which accounted for 3%
– Food export and restaurant industry spent approximately USD 19 million which accounted for 3%
– Advertising industry spent approximately USD 16 million which accounted for 3%
– Cleaning chemicals industry spent approximately USD 14 million which accounted for 2%
– Cosmetic industry spent approximately USD 12 million which accounted for 2%
– Fashion accessories industry spent approximately USD 11 million which accounted for 2%
– Oral health care industry spent approximately USD 11 million which accounted for 2%
– Others spent approximately USD 138 million which accounted for 22%
Did COVID-19 Cause Digital Ad Spend To Decrease This Year?
The automotive industry was the biggest spender when it came to digital ads in 2020, but the spend was still lower when compared to 2019. One of the reasons for this decrease may be because of the pandemic and its effect on consumers.
The COVID-19 pandemic has affected consumers’ financial situations in many ways. Many people lost their jobs, salaries were reduced and some people had to temporarily stop working altogether. Therefore, people could not afford a down payment or to pay for monthly installments. Furthermore, for some people, motor vehicles are considered as luxury goods that they do not necessarily need. These are some of reasons the automotive industry had to stop producing motor vehicles, and instead focus on selling those that were already in stock.
Similarly, for the banking industry, digital ad spend decreased by thirty percent, compared to 2019. Banks had to be more strict with approving loans and investigating their customers’ financial situations.
However, there are some industries that increased their digital ad spend in 2020, such as the skin care, beverage, and snack food industries.
How to Adapt Your Digital Marketing Strategy in a Time of Crisis
We all know that there are various marketing theories out there. But since COVID-19 happened, those theories might not be effective as they once were, simply because the world is not what it once was. Therefore, the digital marketing strategy that we as a digital marketing agency used to help many businesses survive during the pandemic, was to simply suggest that you spend wisely.
You have to make sure that every penny you spend on advertisements is measurable. Online advertisements are a great way to attract new customers but you should not focus on one particular platform too much. You need to know who your audience is, what platforms they are using, and you have to explore opportunities on other platforms as well, and use this data to plan your digital marketing strategy.
If you only use Facebook ads, we would like you to be more open to Google ads, doing SEO on YouTube, hiring influencers etc. We believe that in this digital age, you cannot just use one digital marketing channel because that means you are limiting your business from growing and expanding to find new opportunities.
Everything Is Easier When You Have a Partner
A successful digital marketing strategy is driven by data, tools and plans that are customised for your business. You cannot copy someone else’s ideas or strategy and expect the same results. That’s why hiring an award-winning digital marketing agency that is run by professional experts with comprehensive digital tools to take care of your marketing campaigns is worth every penny.
So, if you would like to consult our digital experts in Bangkok, please feel free to contact us. Primal is a complete digital marketing agency. Our services include Facebook ads, Google ads, SEO, SEM, content marketing, social media management and more.