B2B digital advertising will increase spending on digital advertising for the remaining 2020.
A new report from Emarketer says that the US market for B2B digital advertising is sustaining in the COVID-19 pandemic. The research firm expects B2B spending for the digital ad to hit spend $8.14 billion in 2020, recording an increase of 22.6% from 2019 when the expenditure stood at $6.64 billion.
The pandemic has pushed B2B advertisers to rely heavily on paid digital ads more than ever before. B2B digital ad spending growth in recent years has outstripped digital ad spending growth overall for all US digital advertising, notes the report.
Even though several B2B companies have reduced their overall marketing spend owing to cuts in marketing budgets, they have increased the usage of digital paid channels. Digital ads are the primary touch point to reach B2B buyers as they are spending more time at home in front of multiple digital screens.
B2B firms are turning to digital advertising to fight the loss of in-person events, meetings, and traditional sales channels duel to low, competitive CPMs. B2B marketers still have enough budget to drive substantial growth on paid digital channels even if the increase in the broader digital ad market has been stalled in the crisis.
The strict lockdowns and remote working has restricted B2B marketers from connecting with buyers in person. They are also focusing on sponsored webinars and virtual events along with search and social media ads.
As per the report, the coronavirus pandemic will significantly bolster the B2B digital ad market in different sectors including healthcare, tech products and services, financial services and telecom
Several B2Bs are adopting account-based marketing ads at higher rates to target particular companies. A large number of these companies relied on these types of targeted advertisements before the pandemic; however, this strategy is becoming increasingly popular, mainly due to a lack of in-person events.
B2B marketers will still find it challenging to target buyers in the current remote working conditions as most ABM ad vendors rely on reverse IP address detection and soon-to-be-dead cookies.
A report from McKinsey, B2B Decision Maker in July, had found that 65% of B2B decision-makers say the remote model is equally or even more effective than what they were doing before the crisis.