It is yet unclear how much of this slowdown can be attributed to the consequences of Apple’s ATT versus a stabilisation of the ad market since global reopening began. However, the company has released a cautious outlook for its fourth quarter and full year financials “in light of continued headwinds” from ATT, as well as “macroeconomic and COVID-related factors”.
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Online brands have increased TV ad spend by 37% since 2019
Brands that were born online have increased their linear TV ad spend by 37% since 2019, according to a report from Marketing Week which outlines new 2021 data from Nielsen and Thinkbox.
This trend varies in strength across different verticals. Online-born exercise brands, including the likes of Peloton and Echelon, have together increased spend on TV advertising by 279% in the two years, ranking this category as one of the most eager to use the platform. Meanwhile, spend by online car brands like Carwow and Cinch has collectively grown by 235% to reach £36.3 million in total.
Gifting and greetings cards, online food delivery services and streaming platforms also increased their investment in TV advertising by 209%, 194% and 137% respectively. Conspicuously, online travel brands cut their spend by 57% as they continue to feel the effects of travel restrictions.
Thinkbox’s Research and Planning Director, Matt Hill, commented that the overall increase in ad spend by online-born businesses has been mostly driven by the pandemic, but the rise in TV investment also “demonstrates they see [the format] as a valuable means of driving growth”.