The pandemic has not only changed the way businesses operate, but different industries as a whole.
According to an eMarketer forecast, business-to-business (B2B) technology products and services, which pertain to the largest sector of B2B advertising, experienced a significant increase in the United States. This occurred as the pandemic boosted the demand across the technology industry.
The spending reached 50.3% growth in 2020 over 2019, which amounted to $2.62 billion in ad spending compared to $1.74 billion in 2019. As for 2021, eMarketer indicated slower growth at 32.8%.
In terms of 2022, the predicted growth is 17.5% and $4.09 in ad spending for B2B digital technology products and services. As for 2023, the percentage may reach 15.9% and be equal to $4.74 billion.
LinkedIn had a 40.2% display ad revenue growth in 2020, which can be attributed to the sector as well, according to the report. The report also noted how the networking platform’s growth is significant because it’s the biggest player in terms of B2B digital display advertising.
Although technology products and services have a significant role in shaping the future of spending, it’s not the only sector that businesses should examine while thinking about their long-term strategies.
Healthcare in 2020, for example, followed the technology industry as the second fastest growing B2B vertical. The ad spend grew by 45.8%, which was attributed to demands driven by the pandemic, such as healthcare technology in hospitals.
As for 2022 and 2023, the report predicted that B2B digital healthcare ad spending will experience a 14.1% and 13.9% growth respectively.
Given this, for technology products and services, ad spending will keep growing, but not at the same rate experienced in 2020. The rate of growth will slow over the years for this ad spending alongside the spending for B2B digital healthcare.
The pandemic has undoubtedly changed how companies approach long-term ad spending strategies, and understanding how ad spending can affect profitability is a step in the right direction in terms of business success.
Find Your Audience is here to help businesses reach their long-term goals through proven strategies. For more information, contact either 647-953-5042 or email@example.com.