March 29, 2022

How the Pandemic has Disrupted the Way We Consume Online Advertising

An interview with Jesline Rasanayagam, ShowHeroes Sales Director Spain

ShowHeroes Group participated in Periódico PublicidAD’s Digital Ads Forum in Madrid, and to get things started, they interviewed our Sales Director Jesline Rasanayagam on how online advertising and the digital landscape in general has changed during and after the pandemic. Here’s the English version of her interview.

Read Jesline's original interview in Spanish.

Companies currently spend billions on digital advertising. Amounts continue to increase thanks to the figures that are recorded for the return on investment. Where's the limit? Does it exist?

According to the "Study of Advertising Investment in Digital Media" conducted by IAB Spain, investment in 2021 reached 4,069.4M euros. The growth in digital investment continues to increase year after year, but the trends are changing. Companies are adapting to the consumption of the population. For example, we have seen growth in CTV and Digital Audio of 55.3% and 62.6% respectively in 2021. These trends show that brands are betting on new technologies.

Do you think that the pandemic has activated the digital transformation of many companies and that has had an impact on digital advertising investment?

Yes. The pandemic and teleworking have accelerated the need for users to have another type of consumption, where food delivery and online shopping services become more important. According to the 2021 E-commerce Study by IAB Spain, 76% of Internet users are already online shoppers, covering verticals such as Technology/Communication (60%), Entertainment (59%), Food (56%), and Fashion (56%). 

Spending so much time at home during the pandemic has radically changed the way we consume online advertising and television. We no longer talk so much about conventional television or online advertising, but about audiovisual experiences where on-demand services are more important for viewers than passive listening to advertising. 

Faced with a scenario of advertising saturation, this situation has caused a new paradigm in the way of capturing the user's attention. Brands are committed to notorious formats where the user chooses what, when, and where he or she wants to consume certain audiovisual content. They focus on the user, offering an enriching and personalized experience, to generate greater attention and brand recall capacity.

In the last edition of Top Digital Trends 2021, the IAB Spain assured that by the end of 2021 one of every three smart devices would be a speaker. How is the forecast going?

Yes, we find ourselves with consumers who are increasingly demanding in terms of the content they want to see and hear. According to an article published by Labelium about digital audio trends in 2022, podcasts and Voice Shopping will be the most demanded by users. Many media are innovating and looking for original interactive formats that help connect with the emotions of the target.

We can say that Smart TVs, with penetration in Spain at 60% according to a study by The Trade Desk, is an extension of smart speakers. These devices allow you to connect to each other and use the speaker as an additional medium.

In the online advertising ecosystem, will digital ads and video continue to be king on social media?

According to CISCO, by 2022 video will account for 82% of online advertising. In social networks, video seems to be the most used format to cover the upper part of the sales funnel, building high coverage. On the other hand, the VTR and Viewability metrics are below the rest of the video media. You have to take into account other suppliers to reach the middle part of the funnel, which includes consideration and engagement to have a greater brand recall. 

In fact, Instagram has increased the length of its videos, in response to TikTok videos, being able to reach up to 60 minutes. Therefore, we can ensure that video on social networks remains king.

Read the original interview in Spanish on Periódico PublicidAD.

If you’re interested in learning more about the ShowHeroes Group or have any questions please contact us.

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