State of Digital Advertising 2021 Report | Criteo

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State of Digital Advertising 2021:

Advertising for a new paradigm

If ever there was a year of rapid disruption and transformation, 2020 was it. We didn’t just spend more time online, we completely changed the way we manage our day-to-day existence. Lifestyles changed dramatically, and out-of-home activities like working, learning, and shopping became the domain of the household. For businesses, being consumer centric today means thinking about people who consume primarily from home.

Thankfully, the day when we’ll be able to reenter stores without real or existential threat is on the horizon. And while that moment will be very welcome, consumers will still use the hybrid purchasing options they adapted to during the pandemic, like buy online, pick up in-store and curbside pickup. And they’ll still enjoy shopping online.

Companies know that success moving forward means rethinking the ways they reach out to consumers, how they keep them, and how they upsell them. This will impact the way marketers spend and invest in the future.

As COVID-19 vaccines become widely available and the global economy gets back on its feet, look for innovative products, marketing, and distribution models to come to the fore. In 2020 consumers were pushed to embrace what was available and what was possible. Now, they are ready for anything.

Digital Marketing Plans to Remain Robust in the Wake of COVID-19

We surveyed 1,000 senior marketing executives across different industries around the world to learn about their plans for 2021.

Top findings from the study include:

Impact of COVID-19 on Businesses

Revenues dropped, but online sales rose in 2020.

Sixty-one percent of the marketers from the various industries we surveyed reported a decline in revenues compared to 2019. However, the top cited positive outcome of the pandemic was increased website sales.

For retail specifically, Criteo data shows that despite a tumultuous year, ecommerce sales were up +14% globally in December 2020, compared to one year prior.*

All eyes are on marketers in 2021.

Seven out of 10 respondents in our study agreed that the marketing function in their organization became more important during the pandemic. Now more than ever, the pressure is on for marketing teams to drive results across every stage of the consumer journey, from customer acquisition all the way through sales and retention.

Increased web sales were the top positive outcome of 2020

38% saw more website sales/conversions. 1/3 say it has resulted in rapid digital transformation of business processes.

Marketing’s role has become more important to drive full-funnel results

1/2 cite a greater need for performance marketing campaigns to drive sales.

Digital Marketing Spend, Re-allocated

A rebalanced marketing mix for 2021.

Despite a rapidly changing landscape, 87% of marketers plan to spend the same or more on a proven performance driver – paid display / retargeting on publisher sites and apps – in 2021.

More attention on more channels.

The need to connect all touchpoints where consumers discover, evaluate, and buy became even more pronounced in 2020, and businesses are responding. More than one-third of marketers plan to increase spend on omnichannel and paid video in 2021.

Marketing strategies have shifted across all types of businesses

9/10 marketers across all verticals say they have made changes to their strategy due to COVID-19.

Digital marketing campaigns are seeing the least disruption

59% say digital marketing campaigns are going ahead as planned. More than half said the same about marketing budget commitments and co-marketing campaigns.

Marketing budgets are increasing across digital channels in 2021

4/10 say their budgets will increase for retargeting/paid display and advertising on retail websites/apps in 2021.

Priorities & Challenges Moving Forward

Protecting and expanding the business in 2021. Not surprisingly, marketers cite gaining new customers and keeping current ones as their top objectives in 2021. But product and operational innovation is also top of mind: 45% say expanding into new offerings is a core objective, and about four in 10 are keen to explore new business models.

Staying relevant to viewers’ needs and interests is hugely important for marketers

64% said that not showing up next to hateful or fake content was also important—a sentiment that is likely to continue in 2021.