What causes the growth of online advertising in major markets
Analysts conducted a study in the field of advertising, which involved about 60 states. According to the current data, there is a positive trend in the market, higher than it was at the beginning of the year. It is expected that the growth of Internet advertising on average will exceed 5%. A significant increase will be observed in Canada, where the advertising market will show a jump of 14% compared to the previous period. The segment will grow by 13.7% in the U.S. and 12.7% in Australia.
An important indicator in advertising is the budget for the marketing division. It involves the allocation of costs for market analysis, sales optimization, measures to increase demand for products, and others. Most often the marketing budget is allocated for the year, and depending on various factors, it is adjusted.
It should be understood that advertising costs are quite high, but promotion helps to familiarize consumers with the product, increase its sales and be competitive. Trends on the market are changing rapidly, needs are growing, so it is impossible to do without new advertising approaches.
A standard situation is to cut the marketing budget while cutting expenses in the company. However, this is a mistake, because cancelling the stimulation of consumer interest can have a negative impact on sales.
The size of the budget also depends on the characteristics of the company, the time of its presence in the market. If the business has been in business for quite a long time, then its products are popular with customers and have their own target audience. In this case, the main focus of marketing strategy will be to maintain the company’s reputation and maintain consumer loyalty. The budget here will be about 5% of total profits. For a business that has been in the market not so long and needs serious support, the budget will be within 20%. Such a company needs to form a certain image, to show its merits and differences from competitors, and this will require quite a lot of money. Large corporations can afford a large advertising budget and use effective and creative approaches.
Internet advertising is a powerful tool for introducing products to a wide range of consumers. In the initial stages of existence, a small firm pays little attention to promotion, especially if it is not going to scale. However, with each stage of business development the need for advertising will grow, as well as an increase in sales. In order for the company to become recognizable, consumers have a certain opinion of it, it is necessary to initially invest in promotion. This is a long-term investment, which, if properly allocated, will bring its result.