In 2019, Slovenian advertisers will increase their investments in digital advertising by 25 percent to invest EUR 290,000 on average, according to a study by iPROM and Valicon that surveyed 214 Slovenian decision-makers working in advertising and marketing.
The survey shows that 68 percent of decision-makers participating in the survey will increase their digital advertising budgets compared to last year and 29 percent plan to keep it at approximately the same level. “IAB’s 2017 AdEx Benchmark international report revealed that Slovenian companies and organizations invested EUR 47.2 million in digital advertising in 2017. I can confidently say that in 2019 the total value of investments in digital advertising will exceed EUR 60 million by a comfortable margin. Digital advertising has already become a leading advertising format on the Slovenian market, which is an encouraging fact for all industry players,” said Simon Cetin, iPROM.
Efficiency is the number one driver behind digital advertising
Results show that one of the most important reasons for using digital advertising is its efficiency, which is important to 64 percent of the advertisers participating in the iPROM and Valicon survey. Other important factors include the ability to evaluate advertising campaign performance (52 percent), improved interaction opportunities (45 percent) and transparency (44 percent). Advertisers also listed advanced targeting (43 percent) and data on users’ behavioral patterns (40 percent) as important factors. “Advertisers love to use social media and e-mail marketing in their activities. A big reason for this can undoubtedly be found in the recent past, when these approaches achieved solid or even extraordinary results. On the other hand, these two forms of advertising are largely performed in-house, without external contractors. This gives advertisers a deceptive feeling that their costs are lower and that they are retaining their competencies in-house. However, with increasing complexity, digital advertising will require a very strong and numerous internal team or an increase in outsourcing. I believe that the latter is a better long-term approach,” said Matjaž Robinšak from Valicon.
Display advertising is the largest contributor in digital advertising
When asked what form of digital advertising will receive the largest share of resources in 2019, 29 percent of decision-makers answered display advertising, followed by search marketing in second place (24 percent), and e-mail marketing in the third place (16 percent). Video advertising will be the preferred method of digital advertising for 11 percent of the study participants, and 12 percent will invest the largest share of their budgets in social media advertising. Among everyone planning to invest in digital advertising this year, most – as many as 82 percent – will include social media ads in their activities, 77 percent will use search marketing and 73 percent will invest in display marketing.
Service industry to invest the most in digital advertising
In 2019, the average yearly digital advertising budget in the service industry will be EUR 352,000, followed by the retail and FMCG industries, where the average yearly investment will amount to EUR 291,000, while decision-makers in the tourism industry will spend EUR 233,000 on digital forms of marketing communication on average. “I am noticing some differences between the industries and the yearly growth can likely be attributed to a different industry each year. The results show that this year will see a rise in investments made by the service industry, which could become the leader in the digital advertising market for 2019. The average expected investment in this advertiser segment is EUR 352,000, a 35-percent increase over 2018,” said Matjaž Robinšak from Valicon.
iPROM is a leading regional provider of media and technology solutions for digital advertising on the open web. Our knowledge and experience help our customers streamline the complexities of marketing in the digital environment. By combining advanced technology with the most comprehensive consumer behaviour data on the market, we enable our clients to display the right advertising messages to the right person at the right time on the right device while also helping online publishers grow revenues.
iPROM is a high-tech company that brings together the broadest range of consulting, analytical, media and software solutions needed in digital media advertising. Our continuous investments in technological development help us stay ahead of the competition and keep our clients at the front of the minds of their target audiences.