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The Rundown: Travel, entertainment ad spend likely to remain strong in 2022, while early pandemic trends fall off

The travel and entertainment industries are slowly bouncing back nearly 3 years following the global pandemic hit and punished them mightily. Other sectors that became popular earlier in the lockdown, however, are seeing a slowdown in advertising spend as companies look at a possible recession.

In a fresh analysis by intelligence platform MediaRadar, ad spend categories including travel and entertainment in the initial 1 / 2 of 2022 (January through June) both risen to record levels while ad investments in property, home goods and pet supplies declined in comparison with this past year. Consumer shopping trends embraced within the last 2 yrs, such as for example with office at home furniture and pets, are needs to fall off as those markets shift.

Like the start of the pandemic, we have been seeing a shift in advertising investment, said Todd Krizelman, CEO and cofounder of MediaRadar. Rising interest levels, fuel expense and high inflation needless to say improve the spectre of recession.

While 2019 spending data had not been available, H1 2020 levels were lower over the ad spending categories. There were major increases this season, especially in media and entertainment and tech investments in comparison with the first months of the pandemic year. The house products and restaurant categories which are seeing decreases now are in fact time for spending levels much like what we saw in 2020, perhaps as a correction to the boosts they got in 2021.

MediaRadar expects these 2022 increases to stay strong through the next half of the year, despite the fact that travel costs and gas prices have spiked recently. Krizelman explained this probably wont deter folks from venturing out again, whether its traveling or likely to the films.

Despite having surging crowds, long queues at airports and higher-than-ever rental car and flight prices, there’s record demand for travel. Due to this, we have been not forecasting any downturn in the travel industry in the next 1 / 2 of 2022. This can be one of the most resilient segments of advertising for another 6-12 months, Krizelman said.

Winners: entertainment, tech and travel increasing

  • The media and entertainment ad investments undoubtedly showed the biggest increase, growing from $5.8 billion in H1 2021 to $10.9 billion in H1 2022. That is almost double the spending in comparison to this past year, driven mostly by streaming companies, in accordance with MediaRadar. Movie promotion also grew in this category, with $1.2 billion invested up to now this season.
  • Tech ad spend went up from $5 billion in H1 2021 to $6.7 billion during same period this season, reflecting a 34% year-over-year increase. There is growth in semiconductor chips, mobile and business software.
  • Travel ad spend grew from $1.2 billion in H1 2021 to $2.1 billion in H1 2022, representing an 83% year-over-year increase. Investments were driven by major airlines, cruiselines and tourism groups.

Losers: furniture, property and restaurants visit a drop

  • The financial and property investments saw the largest slowdown within the last month, dropping from $902 million in June 2021 to $769 million in June 2022. There is popular as people bought homes outside cities and ordered furniture and goods for working remotely, but things are trying to cool off with this front.
  • Furniture ad spend was down slightly from $498 million in June 2021 to $494 million this June. Restaurants and bars may also be seeing a substantial decline in ad spend, down 25% from $381 million last June to 283 million this June.

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