Zenith has released a travel ad spends forecast report for 2022-23.
The report details the rapid growth in advertising revenues after the slowdown of the pandemic year 2020 and the recovery year of 2021.
According to the forecast, travel advertising expanded by 24% in 13 key markets in 2021, whereas the forecast for 2022 and 2023 is pegged at a growth of 36% and 19% respectively.
As the travel category is seeing an upward trajectory on digital platforms, digital travel advertising aims to capture consumers in the early stage of travel research through search advertising, display ads, and relevant videos.
Although the pent up demand for travel ad spends is on an upsurge, Zenith states that it will take until 2023 for the travel industry to exceed the 2019 levels of ad spends.
The markets included in the report are Australia, Canada, China, France, Germany, India, Italy, Poland, Russia, Spain, Switzerland, UK and USA.
- 70% of travel brands budgets will be spent on digital mediums in 2023
- 6% year-over-year recovery pegged for OOH ad spends till 2023
- 31% growth in travel ads to be witnessed in India, whereas Russia will see a 21% growth by 2023
- 16% growth in travel ads to be witnessed in China, whereas Poland will see a 14% growth by 2023
- 13% growth will be witnessed in the US ad market by 2023 due to media price hikes
Jonathan Barnard, head of forecasting, Zenith, said, "As travel begins to recover from the unprecedented drop in demand in 2020, brands are rebuilding their relationships with consumers, using digital technology to guide them at every stage. Online video, in particular, will play a key role in creating emotional connections with consumers, inviting them to take their first step on their digital journey."
Ben Lukawski, global chief strategy officer, Zenith, added, “Travel was one of the earliest sectors to embrace digital as booking went online. Post-Covid, the best-performing brands will complete this transformation by making the total experience digital, from reducing form-filling to contactless entry, removing nearly all possible friction from the experience.”