After analyzing the market spending by 30,000 US-based companies, 42,000 UK-based companies, and 45,000 EU-based companies we have come up with well-researched global digital advertising spend statistics in the current market.
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Share of Digital Advertising Spend by Industry
Due to a gradual decline in the global marketing spend a decline of 8.5% can be witnessed in the global paid search ads in the year 2021. However, now since the pandemic is almost retreating, most companies are coming back on track by gradually reducing their market expenses.
The chart below draws a comparison between the trends in Q2 2021 and Q3 2020-Q2 2021:
Based on the prior facts, the five major companies that play around with the dynamics of global Digital Ad Spending can be listed as:
- Legal services
- Online media
- Computer games
- Internet providers
- Insurance
Insurance Digital Ad Spend
The insurance companies are known to have hyped up their Digital Ad Spending since the very outbreak of the pandemic. With an average expenditure of $99,930 per month per company, the industry is known to have experienced a growth of approximately 7.01% in Q2 2021 as compared to January-March 2021.
Online Media Digital Ad Spend
This year witnessed a major decline in online media Digital Ad Spends. Despite being the biggest spenders, online media decreased its expenses by 31.11% (with respect to Q1 2021) i.e. $66,625 per month per company in the year 2021.
Internet providers Digital Ad Spend
Internet service providers are known to have increased their budget i.e. $45,225 per month per company. They are recovering from the Covid-19 effect and have also increased the advertising finance by 2.48% in Q2 2021.
Computer games Digital Ad Spend
The computer game industry is one of the biggest active investors of global advertising spend ($36,839 per month per company). The industry was known to have a budget of around $49,708 back in July-September 2020. However, due to the stagnation resulting in cutting down of Google ad budgets, this industry experienced a slight decline of about 0.98% during Q2 2021.
Legal services Digital Ad Spend
The legal services industry with a spending of $34,611 experienced a decline of 8.46% in April-June 2021 with respect to January-March 2021.
Jotted down below is an apt review of other primary industries and their track record in paid search spend.
Pharmaceutical Digital Ad Spend
Considering the recent events (Covid-19) the pharmaceuticals have comparatively maintained quite a low budget with $1,533 per month per company in 2020. Further, an 8% decline in the budget made the value go down to $1.262 in Q2 2021.
Automotive Digital Ad Spend
Initially, the automotive digital companies had made spending of approximately $33,264 per month. However, a recent shift to various other marketing modes has resulted in a slight decline of 2.52% i.e. the budget in the first quarter of 2021 dropped down to $29,237 per month.
Educational Digital Ad Spend
Due to the recent pandemic and global panic higher education establishments were seen catching up with higher investments in the marketing sector while the spending in e-learning tend to remain the same with minute fluctuations (July-September 2020); the company reportedly took 59 million enrollments in 2020 with 249% YOY growth.
The average investment by higher education establishments sums up to $19,086 per month; they are known to spend 86.75% more than e-learning platforms.
Based on our research we have come down to note that with the world returning to its normal routine and with the retreat of covid-19 most of the companies are now referring to various other physical modes of advertisements as it brings about better benefit. Also, with the economy recovering gradually, customers tend to spend better.
Global advertising spend by country
The next section of our blog focuses on Digital Ad Spending in various countries across the globe. And for one better understanding, we have also drawn out comparative graphs and statistics. The three main regions that we will be dealing with are-
- United States
- United Kingdom
- European Union
Let’s figure out how the ad spending of these three regions differs from each other and how the different impacts these countries individually.
The United States
The US companies are known to have spent five times more than the EU and UK since the very beginning of the pandemic. Their average share is around $6,738. Furthermore, during April-June 2021, their budget ($16,376) summed up to eight times more than that of the UK ($2,033) and EU ($3,069).
Adding to that, the USA is a dynamic auto manufacturer that spent approximately 30 times more than UK and EU on automotive digital advertising. The USA is known to have spent $40,605 per month per company while on the other hand, the UK and are known to have spent $1,247 and $15,975 respectively. EU along with the UK is known to fall behind the USA with a percentage of approximately 40%.
The USA is known to have made huge investments in higher education school marketing as well. They are known to have spent approximately $21,228 per month. While on the other hand, UK and EU spent $21,228 and $1,247, respectively.
However, the country (USA) is expecting a decline in the spending tendency with the retreat of COVID-19.
While a mere sum of $2,500 is spent on online media spending in UK and EU; on the other hand, the USA is known to spend a huge sum on the same. On average US-based companies are known to spend approximately $109,800 per month.
US banks focus on attracting a new audience
US-based financial companies believe in getting new customers therefore their average spending on the same is $12,800 per month. While on the other hand UK and EU-based companies are known to allocate only $2,675 and $3,295 per month.
United Kingdom
The UK is known to spend more on specific industries; for instance, while the UK spends around $22,000 per month on an average hardware company, The USA and EU on the other hand are known to spend only $3,969 and $1,328 respectively. UK spends 16 times more than EU and 6 times more than The USA). However, a decline of 28.52% in Google Ad budgets was witnessed in Q2 2021.
UK real estate industry makes an investment of approximately $49,000 per month which is an impressive amount in comparison to $1,462 spent by the EU and $3,587 by the USA.
COVID-19 made British people drink less
The pandemic shot up the budget to $21,102 in the UK in Q2 2021. While on the other hand the budgets were known to touch $2,854 (EU) and $4,026 (US).
British machinery is looking for new clients
During the pandemic, an average machinery industry spent around $15,073 per month while the USA spent $3,707 per month and companies from the EU spent only $1,280 per month.
European Union
Apart from the above-mentioned areas, the EU is not known to spend much in any other area. However, the apparel and fashion industry in the EU is gradually growing. With an investment of $14,136 per month per company, the EU has now become the fashion hub worldwide. On the contrary, companies from the US and UK are known to spend only $3,916 and $2,937 respectively.
The EU is trying to revive the tourism
EU in an attempt to revive its tourism is known to spend approximately $43,600 during Q2 2021. While the US and UK on the other hand are known to have spent $16,338 and $4,557 respectively. However, since the EU is home to quite a lot of countries therefore this comparison might to slightly irrelevant.
Our thoughts on the situation
After a thorough analysis of the facts and statistics mentioned above, it will be right to conclude that the companies are experiencing a notable decline in their marketing budgets. A clear-cut decline of 8.5% is significant enough to support this fact. While there can be various factors behind the same ranging from vaccine availability to a decrease in the company’s revenue, yet it is of utmost importance for the companies to realize that it is high time for them to accept the new reality and adapt accordingly. Working on new market strategies and attracting better customers is the only way to stay on top. If you are looking at reading more statistics like these, check out the Statistics section on Blog right away!
