Digital Marketing

Did you know? Digital marketing goes far beyond traditional marketing ...

According to eMarketer and their latest study, digital advertising otherwise known as digital advertising has surpassed traditional advertising in 2020, in the United States. A trend that should also be noted in Switzerland. Already in 2017, online advertising in the world had surpassed traditional advertising more specifically that of TV in terms of advertising investments. In Switzerland, online advertising has never reached such a high level and such a strong growth in only 10 years. It’s time to take a look at this flourishing online advertising market.

But when exactly did Digital Marketing surpass Traditional Marketing ?

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It is until the year 2017 that a turning point is marked in the history of advertising. For the first time ever, advertisers spent more money in digital than in traditional advertising, especially in television. While in the previous year, in 2016 the advertising investments in digital and traditional were still very close, although they have clearly separated in 2017. Digital advertising attracted 41% of the market share with more than 209 billion Francs spent worldwide, compared to 35% market share for TV, or more than 178 billion Francs. The traditional media has been dethroned worldwide, but what about Switzerland?

Although Switzerland’s population is one of the most connected in Europe, digital ad spending is low compared to other European countries. But despite new consumer behaviors, digital ads will only represent one fifth of advertising budgets. This is low compared to most of the neighboring and European countries. For example, in Sweden, whose population is equally connected, the budgets for online advertising represent 45% of total budgets, says eMarketer. The firm explains this trend by the fact that traditional media, including print and television, still enjoy a large audience in Switzerland. Another likely reason, eMarketer says, could be related to advertisers’ hesitation towards digital media: “Concerns about online privacy, especially on social platforms, are widespread and, as a result, advertisers approach social media advertising with caution.”

However, the firm predicts that as consumers become more confident in the digital world, especially with the strong use of social media, online advertising budgets will increase in Switzerland.

The forecasts put forward by eMarketer noted a 19% increase in online advertising spending in 2019, for an amount of 129 billion dollars. On the contrary, those allocated to traditional media will amount to 109 billion, a decrease of 4%. In 2021, the share of spending on digital advertising should even reach 62% according to their estimates.

What lesson should we learn?

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In Switzerland, digital advertising is well on its way to overtaking traditional advertising channels. And it is the GAFAM leaders, more precisely Google and Facebook, that will benefit the most from this dynamic. The eMarketer study also highlights the progression of Amazon Advertising among the global players, although Amazon is not available in Switzerland.

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