Investing in digital advertising…

Investments in digital advertising continue to grow and will register a growth of 15% in 2022, and an individual advertiser will allocate approximately 550,000 euros to this type of advertising on average.

Investment in leasing advertising space in digital media will grow by 14 percent. On average, an individual company will allocate €425,000 for rental in digital media, according to current research by iPROM and Valicon on the attitude of Slovenian companies towards digital advertising in 2022.

The survey was conducted by the two companies between January and April of this year, in which 194 Slovenian decision-makers in advertising and marketing participated. This year, investments in digital advertising in Slovenia will be 15 percent higher (index 115), and in renting space in digital media by 14 percent (index 114).

“We finished 2021 above expectations in the domestic market, where investments in digital advertising grew by 15% last year. Last year, companies donated €90 million to digital. This year, digital investments will significantly exceed €100 million. Advertising in Digital media is undoubtedly the first and leading choice of the most successful companies and brands of all forms of advertising today.”

Just under a third of the digital advertising cake for display ads

Most of the investment, amounting to 31 percent or approximately 170 thousand (137 thousand in 2021) per advertiser, will be allocated by advertisers in Slovenia to display advertising. This share of the pie is up from a good quarter this year. Display advertising has cemented its place among other forms of advertising. On average, a fifth of the pie will be invested in social media advertising this year, and advertisers will invest 15% in search engine marketing. Email marketing will be one of the forms of advertising in which advertisers invest the least this year (10%), and the investment share will be reduced from 80 thousand to 50 thousand euros.

The digital ad formats that will be used by most advertisers remain display ads and social media ads

This year, just under 70 percent of advertisers in Slovenia will include display ads in their digital advertising strategies. Certainly, 67 percent of companies will choose to display ads, and 94 percent are definitely or likely. 68 percent of companies will definitely choose social media advertising this year, and 87 percent will definitely and possibly together, which is seven percentage points less than in 2021. Also, this year, a slightly smaller share will choose search marketing (48% sure) and email marketing (definitely 47%), but both models will still be an important building block for digital advertising.

The average digital advertising budget this year is just under 550,000 euros, and both rent and production are increasing

The total digital advertising cake will grow at a rate of 15 percent in 2022 and will average €546,000 per individual advertiser.

The budget for renting space in digital media for each advertiser has increased from 393,000 euros to 425,000 euros this year, which represents a growth of 14%. Meanwhile, content production for digital advertising in 2022 will grow by 31 percent and will average €109,500 per advertiser.

Investments in digital advertising are increasing in all industries, with the exception of the automotive industry

The growth trend in digital advertising investment was recorded across all industries (services, commerce, insurance and banking, tourism, beauty and health, and other industries), with the strongest growth recorded in the tourism and beauty and health categories. The average investment in the tourism category will be 200,000 euros, while in the beauty and health category it will be just under 1.3 million euros. After two seasons of restrictions due to the COVID-19 pandemic, the volume of investment in the tourism industry was expected to increase again. In the field of beauty and health, a special feature of the Slovenian market can be observed, as many individual advertisers operate and advertise in the broader global market, while the pharmaceutical field increases the intensity of investment in digital advertising.

In the commerce industry, which is the second most powerful industry after investing in digital advertising, the digital advertising budget will reach around 830 thousand euros (9% growth compared to 2021). The scale follows the financial services industry, where the average company intends to invest approximately 430 thousand euros in digital advertising. Compared to 2021, this represents an increase of 26%.

Advertising investment is growing in most industries

The results of the general intent to increase or decrease budgets also indicate that advertising budgets continue to be increased or at least maintained at the same level. Almost half (48%) of advertisers reported an increase in their advertising budget, while only 12% reported a decrease in investment. The percentage of advertisers in tourism that increase the volume of investments reached 85% this year.

In tourism, nearly 70 percent of the advertising budget is digital advertising

Overall, digital advertising accounts for 31 percent of the advertising budget. The industries most skewed in this share are tourism at 68 percent, beauty and health at 52 percent, and services and banking/insurance at 47 percent each.

Reasons to use digital advertising: effectiveness, compliance, and advanced targeting

Both iPROM and Valicon asked advertisers surveyed about the importance of individual reasons when deciding to invest in digital advertising. They believe that effectiveness is the most important influence on the decision to use digital advertising, with 71 percent of them considering it extremely important. Compliance with the law was rated very important by 60 percent of respondents, and advanced targeting by 57 percent. Among the reasons that at least half of them consider it very important are the possibility of evaluating advertising campaigns, the greater transparency of digital advertising and the possibility of communication with target consumers, which is more intense in digital advertising than in other forms of advertising.

Research Methodology

The research on the attitude of Slovenian companies towards digital advertising has been conducted by iPROM and Valicon since 2019. The purpose of the research is to identify the main trends in the field of digital advertising in Slovenia. The research methodology does not change, and exceptionally the content is updated annually, allowing for comparison of results over the years.

The research is conducted through an online survey using the CAWI method, and the professional Slovenian public is invited to participate. This year’s survey, conducted between January 19 and April 11, 2022, involved 194 decision-makers in advertising and marketing in Slovenia.

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