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Summary: Travel and entertainment ad spend expected to remain strong in 2022, but early pandemic trends slow

The travel and entertainment industry is slowly recovering almost three years after the global pandemic hit them and hit them hard. However, other sectors that started early in the lockdown are seeing a slowdown in advertising spending as businesses consider the possibility of a recession.

According to new analysis by intelligence platform MediaRadar, both categories of ad spend, including travel and entertainment, rose to record levels in the first half of 2022 (January to June), while real estate, household goods and pet supplies Advertising investment in has decreased compared to last year. Year. Consumer shopping trends embraced over the past two years, such as home office furniture and pets, are starting to decline as those markets shift.

Todd Krizelman, CEO and co-founder of MediaRadar, said: “Rising interest rates, fuel costs and rising inflation, of course, raise fears of a recession.”

Spending data was not available for 2019, but levels in the first half of 2020 were lower across the advertising spend categories. This year has seen a significant increase in investment, especially in media, entertainment and technology compared to the early months of the pandemic year. The currently declining home goods and restaurant categories are actually returning to spending levels similar to 2020, perhaps as a correction for the boost they got in 2021.

MediaRadar expects these 2022 price increases to remain strong through the second half of the year, despite recent spikes in travel and gasoline prices. Krizelman explained that whether it’s traveling or watching a movie, it probably won’t deter people from going out again.

“Despite soaring crowds, long lines at airports and ever-increasing prices for car rentals and airline tickets, demand for travel is at record levels. We don’t anticipate a slowdown in the travel industry in the second half of the year, which could be one of the more resilient segments of advertising over the next 6-12 months,” said Krizelman. .

Winners: Entertainment, Technology and Travel on the Rise

  • Media and entertainment advertising investment showed the largest increase, rising from $5.8 billion in the first half of 2021 to $10.9 billion in the first half of 2022, according to MediaRadar. Movie promotion has also grown in this category, with $1.2 billion invested in him so far this year.
  • Technology advertising spending increased from $5 billion in the first half of 2021 to $6.7 billion in the same period this year, reflecting a 34% year-over-year increase. Semiconductor chips, mobile, and business software grew.
  • Travel advertising spend increased from $1.2 billion in the first half of 2021 to $2.1 billion in the first half of 2022, an 83% year-over-year increase. Investments were driven by major airlines, cruise lines and tourism groups.

Losers: Furniture, Real Estate, Restaurants Sink

  • Financial and real estate investment saw its biggest slowdown last month, falling from $902 million in June 2021 to $769 million in June 2022. Demand was high as people bought homes in the suburbs and ordered furniture and merchandise for remote work. I’m calm on this front.
  • Furniture ad spend fell slightly from $498 million in June 2021 to $494 million in June this year. Advertising spending for restaurants and bars has also dropped significantly, down 25% from $381 million in June last year to $283 million in June this year.

The Rundown: Travel, entertainment ad spend expected to remain strong in 2022, while early pandemic trends drop off