Poor measurement inflation and the recession that will possibly arrive in Europe this fall are setting the pace in society. The advertising sector is no stranger to the situation and is already noticing the first damage to the investment brands make in advertising , according to a new WARC report . In a study alongside MMA Global , the consultancy claims that more than a third of marketing professionals (35%) in the Asia-Pacific region have identified some metrics as the biggest obstacle to digital marketing growth.
CPC cost increases by 8% year-on-year
Cost Per Click (CPC) search advertising top industry data rates have increased 8% year-over-year globally in the second quarter of 2022. This data is based on the analysis of $9 billion in advertising spend spent over five quarters for more of 3,000 advertiser and agency accounts across 40 industry verticals and more than 150 countries. According to WARC, products such as cosmetics are also driving spending on paid search. Before COVID-19, search spending for grooming and cosmetics brands was growing steadily. This accelerated noticeably in 2020, and WARC Media predicts that search spending in the category will continue to increase.
Challenges for brands in the inflationary scenario
Another WARC study titled Navigating Phone List Inflation and the Threat of Recession , notes that brands have to adapt to behavioral changes while keeping the business afloat for recovery. The current economic recession poses its own challenges for brands , which will have to maintain investment to face inflation. This WARC guide to the consumer crisis aims to equip marketing professionals with the knowledge and resources necessary to make wise decisions in these difficult times.