Thriving in 2020 could be tough for professional services firms that lack a strong online presence. The pandemic has highlighted the downsides of many traditional marketing activities. In-person events are canceled, but the Internet is always open. As we’re seeing from newly-released ad spending stats, embracing digital transformation could help your firm grow in any market environment. 

Thriving in 2020 could be tough for professional services firms that lack a strong online presence. The pandemic has highlighted the downsides of many traditional marketing activities. In-person events are canceled, but the Internet is always open. As we’re seeing from newly-released ad spending stats, embracing digital transformation could help your firm grow in any market environment. 

A new report from eMarketer, Global Digital Ad Spending Update Q2 2020, provides data highlighting the pandemic’s dramatic effect on ad spending.  The full report is behind a paywall but the company shared findings exclusively with The Drum. Here are some takeaways that may influence your marketing strategy.

For B2B, Digital Ad Spending is Pandemic-Proof

2020 has been unpredictable, to say the least. This year’s marketing stats haven’t kept pace with pre-pandemic predictions—though B2B digital spending has been robust.

Worldwide Digital Ad Spending

COVID unsurprisingly caused a dramatic decrease in overall ad spending. Last year eMarketer projected 7.0% growth in worldwide ad spending during 2020; in reality, this year will see a 4.9% decrease in overall ad spending. Digital ad spending will still increase over last year’s numbers

B2B Digital Ad Spending

So that’s the big picture. But we can break this down further to look at B2B spending here in the U.S. By the end of 2020, B2B digital ad spend is expected to hit $8.14 billion, up 22.6% from 2019. That spike is notable because in comparison, US digital ad spend as a whole is only projected to rise 1.7% this year (to $134.66 billion).

Five highlights from the eMarketer report:

• One platform reigns supreme. eMarketer projects that one-fifth of all B2B ad dollars in 2020 will be spent on LinkedIn.
• Tech and financial services lead the way. Tech products and services is the top industry for B2B digital ad spending, comprising 29.6% of B2B digital ad dollars. Financial services are just behind, making up 27% of all B2B digital spending.  Even in a pandemic, healthcare ad spending is less than half of those amounts; projected to make up 10.4% of all B2B digital ad spending in 2020. 
• Work-from-home drove unusual desktop growth. Usually we’re talking about making websites more mobile friendly.  In 2020, more people working from home has led to a spike in laptop/desktop use, with people using these devices 5.3% more so far and desktop ad spending expected to rise by $1 billion this year. 
• The search behemoth falters. Google will have a 3.3% decline in ad revenues this year, the first time it has posted negative numbers since eMarketer started its tracking.
• Ad spending is expected to normalize in 2021. eMarketer bases this prediction on its assumption that the world will have normalized to some extent by 2021. To that end, it projects B2B ad spending will increase by 20.4% to $25.79 billion. Digital ad spending is projected to rise 10.9% from this year, to $9.03 billion.

What This Means For Professional Services Firms

For decades professional services firms have relied on a mix of traditional and online marketing activities.  Many firm leaders thought the former was the driver of real ROI while the latter was marketing’s attempt to stay busy (or perhaps buying into the hype?).  The pandemic has highlighted how critical it is for a firm to be able to effectively reach its audience through digital channels.  Though networking isn’t happening in-person, business is still happening – and your firm is either in the mix of potential providers, or it’s not.  

Truthfully, there’s nothing shocking in eMarketer’s report. These numbers really confirm what marketers have known for years: Digital platforms are a powerful resource for promoting your services. But more than that, these numbers demonstrate that your marketing dollars are most effectively spent on digital. Smaller firms should join larger ones in focusing on digital B2B marketing.

The bottom line? This is the time to bolster your online presence and embrace digital transformation. We have no idea what next year will bring (let alone next month), but digital growth isn’t slowing down. Are you ready to reimagine your digital strategy? Contact me, I’m here to help.