Global Ad Trends: Alibaba controls the world’s third-largest ad business

Must Read

Free 250,000 FG/CAC Business Names Registration for MSMES

Business formalisation Support of the Micro, Small & Medium Enterprises (MSMEs) Survival Fund As part of Federal Government’s post-Covid-19 Pandemic...

FG offers free business registration for 250,000 MSMEs

The Federal Government says it has offered free business registration for 250,000 Micro, Small and  Medium Enterprises (MSMEs) nationwide...

How to Apply for Government N75Bn MSME Survival Fund

The Federal Government of Nigeria is set to commence nationwide implementation of two MSMEs initiatives namely, the MSME Survival...
- Advertisement -

The Alibaba stands to make $23.5bn from selling ad inventory across its e-commerce properties this year, a rise of 6.6% from 2019. Warc released this in its latest Global Advertising Trends report: The pivot to e-commerce summarising the latest research from Warc’s Data platform.

This gives Alibaba control of the third-largest advertising business globally, behind only Alphabet and Facebook. Amazon places fourth; it stands to make $18.1bn in 2020 – up 35.6% from 2019.

Global, E-Commerce advertising spend, US$Billion and year-on-year % change

Alibaba controls the world’s third-largest ad business

Alibaba’s ad business has cooled markedly this year – along with the wider Chinese online market (its core trading territory) – and growth now trails local rivals such as JD.com and Pinduoduo, resulting in lost share.

Elsewhere, Chinese social commerce platform Pinduoduo is set to see its ad income leap 33.8% to over $5bn, ahead of local rival JD.com on $3.6bn. None of the e-commerce platforms monitored by Warc is expected to witness a fall in advertising revenue this year.

- Advertisement -

Advertising spend on e-commerce platforms is set to rise sharply this year despite the global recession – reaching a total of $58.5bn – as brands look to capitalise on the boom in online shopping as a result of the Covid-19 outbreak, finds Warc, the international marketing intelligence service.

Advertising investment across e-commerce sites such as Amazon, Tmall and Rakuten, omnichannel retailers such as Walmart and Carrefour, and social commerce on platforms such as Pinduoduo and TikTok is set to increase 18.3% worldwide, growing 30 times faster than the wider online ad market and in stark contrast to a forecast fall of -8.1% for the total advertising industry this year.

Read Also:  COVID-19: E-commerce Companies Cry Out Under Weight Of Restrictions By Govt Security Operatives

Consumers will spend an additional $183bn online this year due to Covid-19

Online sales are set to rise by 30.4% to $2.9trn worldwide this year, according to data from Edge by Ascential. This represents a forecast upgrade of 8.2 percentage points – $183bn – since the Covid-19 outbreak began. Domestic growth rates range from +19.0% in the UK, to +22.1% in the US and +37.6% in China.

Taken together, e-commerce sales will account for 88% of global retail growth in 2020. The top five platforms will tighten their grip on the market this year, turning over an additional $529bn combined as a result of the outbreak. E-commerce platforms Alibaba (+$221bn), Pinduoduo (+$122bn) and Amazon (+$92bn) have seen the sharpest forecast upgrades since the outbreak.

- Advertisement -

Advertising spends – particularly within the FMCG sector – is moving online as a result of the shifting complexion of sales since the Covid-19 outbreak. Over 8% of Unilever’s business is now done online – the company made 71% (€2.2bn) of its total 2019 e-commerce sales in just the first six months of 2020.

- Advertisement -
Global Ad Trends: Alibaba controls the world’s third-largest ad business - Brand SpurGlobal Ad Trends: Alibaba controls the world’s third-largest ad business - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Global Ad Trends: Alibaba controls the world’s third-largest ad business - Brand SpurGlobal Ad Trends: Alibaba controls the world’s third-largest ad business - Brand Spur

Latest News

Airtel Africa ends H1 with 116.4m Subscribers

Airtel Africa’s subscriber base across 14 African countries grew 4.4% on-quarter and stood at 116.4 million with an Average...

Guinness Nigeria Declares N841.64m Q1 loss as mounting input costs squeezed earnings

Guinness Nigeria Plc has reported a loss after tax increase of 127.2 percent at N841.64 million for the first quarter ended September 30 as...

You Can Now Mute Chat Forever on WhatsApp

WhatsApp has released the “Always” mute feature for users. The feature is available for Android and iOS users and will allow users to mute...

Japan Accounts for 22% Mobile Game Revenue Share Globally from Q1 to Q3 2020

According to the research data analyzed and published by Safe Betting Sites, Japan accounted for 22% of all mobile game spending globally during the first...

Top US and Europe Banks Set Aside $139B as Loan Loss Provisions As Bad Debt Losses Could Surpass $880B by 2022

According to the research data analyzed and published by ComprarAcciones, the biggest lenders in the US and Europe are on course to record some...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Global Ad Trends: Alibaba controls the world’s third-largest ad business - Brand SpurGlobal Ad Trends: Alibaba controls the world’s third-largest ad business - Brand Spur