Travel ad dollars fly higher
The travel industry has been devastated by the coronavirus pandemic unlike any other. Everyone from airlines to hotels to travel retailers have had to halt much of their operations and marketing as a majority of consumers around the world shelter in place.
In a challenging year for advertising worldwide, Germany will experience a slowdown similar to that of every other market we track. Germany’s digital ad spending had grown at double-digit rates for each of the past three years, but pandemic-disrupted 2020 will see that growth slow to just 0.8%.
No industry has been as devastated by the coronavirus pandemic and its effects as travel. Airlines, car rental agencies, hotels and resorts, online booking services, cruises and destination marketing organizations, and business travel support services found their operations ground to a near-halt for much of Q2 2020, and the situation has barely improved in H2.
With the shuttering of amusement parks and cancellation of live events, the entertainment industry will see some of the biggest declines in digital ad spending this year, eclipsed only by the travel, auto, and media industries.
While it’s too soon to bid adieu to the aspirational influencer, it’s clear that the pandemic has humbled many of even the most polished creators.
eMarketer principal analysts Mark Dolliver and Yory Wurmser and forecasting analyst at Insider Intelligence Eric Haggstrom discuss whether Uber, Lyft and Airbnb can make a comeback. They then talk about what kids are doing with their increased screen time, location data consent and how comfortable Americans are with normal, everyday activities.
As layoffs pile up and many industries like retail and travel continue to struggle amid lower consumer spending, confidence in a near-term economic recovery is low.
According to July 2020 data from MMGY Global, 64% of US travelers said they expect to book their next leisure trip within the next six months or less.
Amid the pandemic, many adults in the US aren’t ready to get on a plane anytime soon—especially if it’s packed.
eMarketer senior analyst at Insider Intelligence Jasmine Enberg discusses when travel (and travel advertising) will recover and some good and not-so-good examples of how travel advertisers are running campaigns. She then talks about whether Twitter can make a space for healthy conversations, our expectations for WhatsApp, and the significance of social platforms ending the year looking more alike than ever.
Today marks a big milestone at Insider Intelligence: We launched our new platform, unifying our two brands (eMarketer and Business Insider Intelligence) into a single online experience and expanded our Financial Services coverage. We also just published a report that’s been long in the making--and it happens to be our very first under the new brand.
In terms of the allocations of spend across industries, 2020 will be a story of two trends. On one hand, digital ad investments (and advertising investments overall, for that matter) in some sectors will decline immensely as a result of those industries facing insurmountable barriers. On the other, the pandemic will allow certain other industries to remain resilient in terms of digital spend, with relatively strong growth forecasts for the year. It comes as no surprise that the automotive and travel industries will experience huge spending declines in 2020. As the UK imposed strict lockdown rules, pretty much all travel was nixed for several months. Investment in digital advertising by these two industries will thus suffer, with spend declining by 20.4% for auto and by 36.7% for travel this year.
We forecast that US travel digital ad spending will drop by 41.0% this year to just $3.24 billion. No other industry will decline as fast or spend as little.
In 2020's pandemic-ravaged economy, Uber and Lyft will share in the pain. Usage for both services has been highly correlated with various local and statewide lockdown orders, and although we expect both companies will see better figures in H2 2020 than they did in H1, neither will get close to their 2019 numbers until next year.
eMarketer principal analyst Debra Aho Williamson, junior analyst Blake Droesch, and vice president of content studio at Insider Intelligence Paul Verna discuss Oracle winning the TikTok bid, the 2021 Summer Olympics in Tokyo definitely happening next year, CBS All Access being rebranded to "Paramount+," "YouTube Shorts" being tested in India, Americans' 2020 travel plans, what living creature is technically immortal, and more.
In our previous forecast, we anticipated high revenue and user growth for Airbnb. However, the pandemic has severely affected the company along with the overall digital travel industry.
eMarketer principal analysts Mark Dolliver and Nicole Perrin and junior analyst at Insider Intelligence Blake Droesch discuss when the travel industry will recover, Facebook merging its apps' messaging services, corporate culture suffering with remote work, Google's "People Cards," social media ad load, what are we born afraid of and more.
Consumers aren’t quite ready to book their next trip, let alone stay in a hotel. But many are taking note of what they’ll feel comfortable with when that time comes, according to May polling from Skift and Oracle.
Few industries have been hit as hard by the coronavirus as travel. Recovery will be slow, with many sectors not returning to pre-pandemic levels until at least 2022. Some pandemic-related trends, like increased local “staycations,” may persist.