Telecommunications brands will move the majority of advertising spending to digital platforms over the next three years, media agency Zenith claims.
According to a report by Zenith, telecom brands will increase digital advertising dollars at an average rate of five per cent per year until 2023, with digital ads to account for over 50 per cent of all spending in that industry by time.
Telecom companies usually spend more ad dollars on alternative mediums such as television and out-of-home, however these markets will see ad spending shrink by two to four per cent a year.
Magazine and newspaper spending will also decline by 12 to 13 per cent a year, too.
Big companies such as Apple, Telstra and Optus are traditionally big spenders in the out-of-home, and television advertising markets.
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However, these tech and telco giants will refocus spending on mobile and internet platforms as the pandemic shifts work trends, Zenith reports.
“COVID-19 has demonstrated how dependent we are on good, fast and reliable internet connections. Telecoms companies have been the unsung heroes of the pandemic, shifting our lives online and keeping us connected to entertainment, work and commerce,” Ben Lukawski, Zenith global chief strategy officer, told the AFR.
“Their challenge is to go from being unsung to being acknowledged and appreciated for their efforts. The spread of 5G and the reality of our new-found virtual lives give telecom brands the opportunity to move into the limelight.”
Australia’s advertising market shrank by $1.1b billion as COVID-19 affected ad spending. Global ad spend in the west also fell by $9.9 billion.
