Impact of the pandemic on the retail industry and how marketers should prioritize digital channels by cutting ad budgets and several other factors that marketers must consider in 2022.
FREMONT, CA: In 2020, the pandemic had a drastic effect on the world, the marketers scrambled to react, prioritized digital channels by cutting ad budgets. But recently, the industry recovered as the advertising spend grew in the APAC region by 16.5 percent in 2021 stated Laura Quigley, the senior vice president for sales in APAC at IAS. Digital ad revenues increased 23 percent this year and will grow at a rate of 16 percent in 2022, representing 66 percent of total advertiser budgets. By taking the benefits of technologies to streamline operations and maintain relevance with their audience, marketers must be agile and rapid to keep up with such changes.
The pandemic has been one of the most significant growth drivers for APAC omnichannel retail, with online sales anticipated to reach 2.8 trillion dollars by 2025. The continuous rise of e-commerce, along with artificial intelligence, has brought the offline retail experience online. Convenience has become an important factor in purchasing decisions; consumers want to be able to approach brands through the channel of their choice, moreover have several payment options, and most importantly have access to speedy delivery services. As the world returns to normal, internet shopping is projected to increase, but more crucially, consumers want the option of purchasing online or in-person at any time. Businesses must continue to invest in omnichannel consumer engagement technologies such as voice search, AR capabilities, AI chatbots, and visual search.
As firms expand their e-commerce offerings, optimizing digital ad campaigns will become increasingly important. According to Integral Ad Science's (IAS) H1 2021 Media Quality Report (MQR), APAC regions were among the top brand-safe markets globally for desktop display. In Singapore, brand risk over display has reduced for both desktop and mobile web. This demonstrates that the region is a feasible setting for digital advertising if brands and advertisers invest in media quality, ensuring that their ads are presented to actual people on secure, reputable sites or alongside relevant content for increased brand memorability.