Consumer Influences
Pop culture, religion and community culture are the biggest influences. Family and friends, as well as social media, are also influential.
ADVERTISING SPENDING
World’s biggest tech platforms are also massive investors in adspend
By our News Team | 2022
Big tech businesses have moved from being ad-investment sceptics, to ranking among the globe’s biggest-spending advertisers.
The eight biggest technology platforms in the world accounted for six percent of all advertising spending globally during 2021. In all, the likes of Amazon, Alibaba and Meta spent a whopping US46.6-billion on ads.
This is according to a new WARC study entitled ‘Big Tech’s Growing Share of the Post-Covid Ad Economy’, which finds the tech-platform sector’s spend on advertising is growing faster (+49.4%) than categories such as media and publishing (+34%), technology and electronics (+26%) and retail (+21%).
Last year, Amazon invested $16.9-billion in ads (up by 55.0% year-on-year), which equates to the most ever spent by a single company over a 12-month period.
At number two in the big-spending stakes is Alibaba, which invested $8.8-billion in 2021, a rise of more than 84%. In doing so, Alibaba has grown its share of total adspend in the category from 2.9% in 2014 to 19% in 2021.
Photo by Preis_King on Pixabay
Alibaba’s adspend is now ahead of Alphabet
For the first time, Alibaba now beats Google-owner Alphabet in total ad investment. For its part, Alphabet spent $7.9-billion, an increase of 47%.
Among the businesses analysed in the study, Microsoft is the company with the least commitment to advertising. It spent $1.5-billion last year – a figure that has remained largely unchanged in six years.
WARC Media’s Alex Brownsell, who is author of the report, said: “Big tech businesses have come a long way from being ad investment sceptics, to ranking among the biggest-spending advertisers in the world. As their dominance of the mobile-first digital commerce marketplace increases, so too their share of total global ad spend is likely to grow.
“It underscores that, while digitally-native brands can succeed in the short-term without the support of ad spend, long-term success often depends upon a willingness to invest in performance-enhancing and brand-building advertising.”
Brand Strategy
Long-established sports brand launches ‘Adidas Sportswear’ line to take on Nike for a bigger share of the global Generation Z audience.
Influencers
Consumer commission investigating misleading testimonials and endorsements, as well as failing to disclose affiliations with brands.
Consumer Preferences
Companies spend fortunes on tracking changing customer preferences and then adapting to them. But is seems brands like Disney may be exempt.
Sports Sponsorship
Marketing deal would cost around US$51.8-million over three years and aim to boost international tourism. But critics are unconvinced.
Customer Experience
Changing consumer expectations mean many CX strategies won’t win and retain customers in this new business environment, study finds.
Retail Industry
Organisation’s mission is to offer education, insights and events that help drive the evolution of the retail industry around the world.
Travel and Tourism
Sector must take advantage by finding fresh routes to traveller engagement and new ways of building customer experiences.
Conferences and Exhibitions
More than 300 exhibitors representing 15 African countries are already registered, along with 275 buyers from 45 countries.
E-commerce
Global e-commerce giant is said to have postponed SA launch to late 2023 and paused Nigerian market entry until further notice.
Podcasting
On a continent where huge numbers of young people are embracing non-traditional mediums, the rise of podcasting seems assured.