The pandemic has completely changed shopping habits. Many consumers who prefer to browse and shop in person are shopping online out of necessity. Businesses have responded by investing more than otherwise Phone Number List justifiable in new technologies, infrastructure, organizational changes, and advertising. This includes performance-based brand advertising, to promote ecommerce platforms, direct traffic to them, and advertising within these platforms, to promote specific products.
The travel, hospitality and retail sectors, in particular, face a possible risk of regression, however, e-commerce and the digital advertising that comes with it have Phone Number List upside potential. In studies conducted by the Zenith agency, global ad spend is expected to reach $ 705 billion in 2021, up from $ 634 billion in 2019, and will grow to $ 873 billion in 2024.
The agency anticipates that the digital transformation will continue, but not reverse, as the pandemic allows in 2022 and beyond. The pandemic has accelerated trends that were fundamentally already reshaping the economy Phone Number List and will continue to do so. Zenith forecasts a 14% growth in global digital ad spend in 2022, up from the previous forecast of 10%, followed by growth of 9% in 2023 and 10% in 2024.
Advertising is contributing more to the global economy
This structural change in the economy means that advertising is playing a bigger role, driving sales growth through ecommerce. In particular, it has caused an increase in advertising in retailers: display or search advertising, which appear on ecommerce platforms.
Retailers can be very effective, allowing brands to target active shoppers at the point of purchase. Zenith estimates that retail advertising grew from 24% in 2019 to 53% in 2020, and 47% in 2021, reaching a total of $ 77 billion. This equates to the sum of the ad spend in newspapers, magazines, radio and cinema together and represents 20% of all ad Phone Number List spend in digital display and paid search. By 2024, advertising investment in retailers is expected to reach 143,000 million dollars, and 27% in display and search. Much of this advertising investment will be added to the existing one, coming from commercial budgets previously used to buy space on the shelves of physical stores.
The rise of the digital economy has also stimulated other forms of advertising, such as brand campaigns on television and outside, where digital brands are Phone Number List now very important. The percentage of global GDP contributed by advertising had risen steadily before the pandemic, from 0.72% in 2014 to 0.75% in 2019. Following the shift in digital media consumption and ecommerce last year, it is expected to reach 0.77% in 2021 and 0.80% in 2024. This will be the largest increase in advertising share of GDP since the late 1990s.
Ad spend in all regions is now well above pre-pandemic levels, and all are expected to grow healthily in the coming years. Zenith expects the fastest growth between 2021 and 2024 to come from Central and Eastern Europe and the Middle East and North Africa (MENA), with average annual growth rates of 12.2% and 10% respectively. Advertising in Central and Eastern Europe is driven by rising productivity and disposable income as their economies move towards maturity, encouraging more brands and product categories to enter the market. For its part, MENA benefits from high oil prices, as energy demand has outstripped production. The slowest growth is expected in the mature markets of Western Europe,