XXI Smart Business Meeting 2022: towards a new paradigm of advertising
Knowing how to sell yourself or being able to convince in the short space of time in which there is room for a sigh is not an easy task.
Even less so today, with the attention windows of the public increasingly shorter, with so many communication channels and with a difficult measurement and a high fragmentation of the audiences.
The ever-changing advertising is now facing new challenges, such as the entry into the scene of new products arising from technological innovation or changes in the legal framework with, for example, the regulation of bookmaker advertising.
Influencers or creators of digital content have been the subject of controversy by industry experts and regulatory agencies regarding certain advertising content that can be harmful to health, such as fast food or volatility in investing in crypto assets.
XXI Smart Business Meeting 2022
The advertising business moved in 2019 more than 19,190 million euros, which represents 3.4% of the volume of the entire services sector in Spain, according to the Advertising Observatory published last November.
In addition, AD spend reached 10,793. Six million in 2020.
The observatory, developed by some of the largest associations of advertisers and consumers, echoes the heterogeneity of a very young business fabric that has grown by 5% in the last five years.
And it highlights that 99% of advertising companies in Spain have less than 20 people.
That is, it is a sector in constant renewal. In 2020 alone, 35% of advertising companies operating in Spain were created.
Growth volumes in XXI Smart Business Meeting 2022
However, although it has grown in volume of companies, the sector's contribution to Gross Domestic Product (GDP) contracted: it went from 1.3% in 2019 to 1.23% in 2020 due to the impact of the pandemic.
In addition, due to the current global supply crisis, many advertising agencies have seen some of their clients cut their marketing budgets by 10% to 50%, they explained.
Strong sectors in advertising investment such as the automotive, retail, catering or finance have had to reorient their communication strategies or their campaigns due to this situation that is expected to relax as it progresses this 2022.
Audi, for example, was looking for an advertising agency to overturn its brand image in its transition to electric and hybrid vehicles.
This situation also affects a large part of the media in which advertising is present.
If it had already been a trend that had been stepping very strongly, with the outbreak of the pandemic much of the advertising investment has been reoriented with greater intensity towards digital formats.
Advertising in XXI Smart Business Meeting 2022
By supports, advertising investment fell in all due to the pandemic, but not in the same way. In the digital media it fell just over 5%, while in television, radio, and printed newspapers it fell by 18%, 23% and 30.8%, respectively, compared to the previous year.
Traditional ones such as linear television or radio have been losing prominence for years in favour of the online format. In 2020, digital support was again the one that concentrated the most investment, with 2,174. Three million euros; followed by television, with 1,640 million euros —despite being the support with the most penetration among the population—; and radio, with 338 million.
The " under-measurement "or segmented measurement, which results from the audio meters of television, as several experts in the sector have pointed out, contrasts with the" over-measurement " offered by the digital format in all its supports.
In addition, new systems such as programmatic advertising, especially the AVOD format, are gaining special relevance thanks to the advertising segmentation they allow. Streaming platforms like Atresplayer have already pointed out the benefits that this format can offer.
Regarding the messages that companies share, it has been seen how issues related to sustainability, inclusion and diversity have gained prominence, while traditional ones such as emotion or authenticity are reinforced, according to the Observatory of Advertising.
In addition, the industry is already studying how to address some of the challenges posed by the arrival of disruptive elements such as virtual reality, non-expendable tokens (NFT) or the metaverse.
To delve into all the challenges and trends currently facing the advertising industry, as it organizes on February 2 from 17.00 hours its XXI Smart Business Meeting.
The meeting, called Towards an advertising paradigm, will be presented, and moderated by the CEO of Axel Springer, Manuel del Campo, and by the director Yovanna Blanco.
