Based on current vaccination rates and projections, many financial institutions are predicting a major consumer rebound in the second half of 2021.
Once the world starts opening back up again, there are some major trends we expect to see that will directly affect advertising spending this year.
1. People making up for lost time
Whether it be called the “YOLO economy” or even “revenge shopping”, once people are vaccinated and businesses are able to reopen fully, we’re expecting consumers to be extremely enthusiastic to purchase and participate in experiences they have been denied for over a year.
Dining out, entertainment, and domestic travel are likely to see a huge resurgence upon vaccination rollout.
2. A tiered bounceback
Keep in mind though, people are still likely to be cautious so outings won’t immediately return to pre-COVID rates. These changes will probably come in spurts.
For example, while local and domestic leisure travel is likely to see very high demand, international and business travel are not likely to see a high bounceback rate this year.
3. A shopping resurgence
Experiential and communal businesses aren’t the only areas we’re expecting to see growth.
Shopping and consumer goods purchases are projected to increase later this year. Many have been saving and being more careful about their expenditures over the last year. Once people feel more optimistic about the future, some financial institutions predict splurges on those purchases they’ve been holding back on.
As a result, we may see advertisers ready to hop on this trend and spend more on advertising later in 2021.
4. Digital acceleration
We’ve seen an extraordinary acceleration in technology development and adoption as a result of the COVID-19 pandemic.
2021 will hold continued growth for tech, especially solutions for remote working and learning as well as virtual events and community platforms. From online retail offerings to online grocery shopping, more and more people are embracing digital solutions.
Many institutions expect this trend to continue into the year ahead with increased interest in 5G, virtual reality, education tech, SaaS (software as a service) solutions, and more.
As the world re-opens, people are likely to incorporate a new hybrid of online and offline experiences into their life. We’re hopeful this means we’ll see a slight residual increase in publisher traffic coupled with more confident advertiser spend in the latter half of the year.
5. Taking a stand
We’re seeing “purpose” and “intention” as common themes across market reports, getting to the heart of transformation for society, business, and individuals.
Consumers expect brands and businesses to take a stand for things that matter to them, from human rights and diversity to sustainability and giving back.
6. Rekindled community
According to GFK, isolation has been the #1 personal effect of COVID, so we anticipate an eagerness to return to in-person gatherings.
Family parties, group travel, and community gatherings are all likely to see a surge in the back half of the year, pending vaccinations.
And as we know, where consumers grow, advertisers go, so again we’re crossing our fingers for a strong finish to 2021.
7. Potential threats lurking
It’s not all sunshine and rainbows. While the vaccination timeline is still in flux, we may see unexpected changes in traffic and revenue.
Additionally, there is concern about rising inflation, future economic downturns, and dealing with the fallout of 2020.
So with that said, publishers should proceed cautiously and be prepared. It’s more important than ever to diversify traffic and revenue sources and adapt and try new things for your business.