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The travel and leisure industries are slowly bouncing back nearly three years after the global pandemic hit and severely punished them. Other sectors that were hit earlier by the ban are seeing a slowdown in ad spending as companies anticipate a possible recession.
According to a new analysis by intelligence platform MediaRadar, ad spending categories including travel and entertainment both increased to record levels in the first half of 2022 – while ad investments in real estate, home furnishings and pet supplies declined compared to last year. year. Consumer shopping trends such as home office supplies and pets that have embraced the past couple of years will begin to fall as markets shift.
“We’re seeing a shift in ad investment similar to the beginning of the pandemic,” said Todd Krizelman, CEO and founder of MediaRadar. “Rising interest rates, fuel costs and high inflation will increase the rate of recession.”
While 2019 spending data is not available, H1 2020 levels were lower across ad spend categories. This year, especially in media and entertainment and technology investments, compared to the first months of the epidemic year, there have been significant increases. The domestic product and restaurant categories, which are currently shrinking, are actually returning to spending levels similar to what we saw in 2020, possibly a correction to the improvement they got in 2021.
Despite recent increases in travel costs and gas prices, MediaRadar expects these 2022 increases to remain strong in the second half of the year. Krizelman explained that this probably won’t stop people from going out again, whether it’s traveling or going to the cinema.
“With huge crowds, long lines at airports and ever-higher rental car and flight prices, demand for travel is high. As a result, we are not predicting any downturn in the travel industry in the second half of 2022. This is probably going to be one of the more resilient advertising segments for the next 6-12 months,” Krieselman said.
Winners: Entertainment, technology and travel are on the rise.
- Media and entertainment advertising investments saw the largest increase, growing from $5.8 billion in H1 2021 to $10.9 billion in H1 2022. Film promotion has grown in this category, with $1.2 billion invested this year.
- Tech ad spending grew from $5 billion to $6.7 billion in H1 2021, a 34 percent year-over-year increase. There was growth in semiconductor chips, mobile phones and business software.
- Travel ad spend grew from $1.2 billion in H1 2021 to $2.1 billion in H1 2022, representing an 83% year-over-year increase. Investments were led by major airlines, cruise lines and tourism groups.
Losers: Furniture, real estate and restaurants will see a drop.
- Financial and real estate investments saw the biggest slowdown last month, falling from $902 million in June 2021 to $769 million in June 2022. There was a huge demand when people bought houses outside the city and ordered furniture and appliances to be made remotely, but things are slowing down on this front.
- Furniture ad spending fell slightly to $494 million in June 2021 from $498 million. Restaurants and bars are seeing a significant drop in advertising spending, down 25% from $381 million last June to $283 million this June.
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