Report: Advertising money on TV and social media is double daily consumption

Social media is forecast to account for 39.1 percent of 2022 ad spend. (WARC Data.)
Short Url
Updated 22 October 2021
Follow

Report: Advertising money on TV and social media is double daily consumption

  • New report by WARC says social media spend would need to reduce by $94.3 billion to mirror global consumption levels next year

DUBAI: Advertiser spend on TV and social media is highly inflated in relation to daily consumption, according to a new WARC analysis of advertising spend forecasts for 100 markets worldwide and the results of a survey by GlobalWebIndex of more than 715,000 consumers.

“The study shines a light on divergences between media investment and consumption, two metrics which are rarely seen to be in lockstep with one another,” said James McDonald, managing editor, WARC Data, and author of the report.

The analysis finds that, as of the first quarter of 2021, social media attracts more investment from advertisers than linear TV for the first time— however, both media channels draw far more advertising budgets than the average consumer spends with these channels each day.

Social media, for example, is forecast to account for 39.1 percent of 2022 ad spend among the eight media studied in the report: Linear TV, online video, social media, print press, online press, podcasts, broadcast radio and online audio.

However, social media has a 21.4 percent share of daily media consumption— a discrepancy of 17.7 percentage points, which is valued at $94.3 billion.

Since Q2 2016, social media has accounted for more than two hours of daily media consumption and is expected to reach two and a half hours during the second half of next year.

Linear TV ad spend, on the other hand, is twice the daily consumption and is forecast to account for a 31.5 percent share of advertising spend next year, compared to a 16.1 percent share of daily media consumption. This would equate to an investment gap of $86.9 billion worldwide next year.

“The seemingly inflated investment gap actually speaks more to the enduring power of the medium — its vast reach combined with attentive audiences and the heightened impact of audiovisual creative. These traits allow it to command a premium in the media mix, one which is likely to sustain even as social media further grows its share of budgets,” McDonald said.

While linear TV spend is inflated in relation to its consumption, online video is now close to parity after years of underinvestment. It is worth noting that the world’s largest online video platform, Netflix, is predominantly ad-free, while platforms such as YouTube are prone to adblocking on desktop and mobile devices.

Still, advertisers are forecast to spend $71.9 billion on online video this year — a 13.6 percent share of the eight studied media, which compares to a 12.9 percent of media consumption.

The most heavily undervalued media channels are undeniably audio and online press. Podcasts are undervalued by a massive $40 billion. Even with one in three Internet users now listening to a podcast each month, the advertising rates are much higher than even TV, which is well known to be a premium medium with high advertising costs.

Online press also appears to be another heavy undervalued medium: Advertisers would need to spend $58 billion on online press ads globally next year to achieve parity with consumption levels. However, the forecast spend is only $12.8 billion.

Consumers already spend a fifth of their media day in social feeds and are forecast to spend twice as long with social media than with online press next year signaling a dire future for online press.

Print press investment is now on a par with daily consumption on a global level, but advertisers would need to spend $45.3 billion more on online press to mirror these levels. This has led to publishers diversifying their business models to counter the shortfall in advertising revenue with 76 percent of publishers prioritizing subscriptions this year.


Dubai Lynx expands talent training program Young Lynx Academy to Saudi Arabia

Updated 27 January 2025
Follow

Dubai Lynx expands talent training program Young Lynx Academy to Saudi Arabia

  • Winners will be recognized at the Dubai Lynx Awards ceremony on April 9 in Dubai

DUBAI: Dubai Lynx, a prominent creative festival and awards program organized by Cannes Lions, has announced the launch of the Saudi edition of its annual Young Lynx Academy, in partnership with multinational advertising conglomerate Publicis Groupe Middle East.

“Saudi Arabia’s creative industry is at a pivotal moment, driven by ambition and a growing appetite for world-class creative excellence,” Adel Baraja, CEO of Publicis Communications KSA, told Arab News.

He added: “The market is brimming with untapped potential, and we believe initiatives like Young Lynx Academy will play a crucial role in shaping the future of creativity in the Kingdom.”

The Dubai edition will be held on April 7 and 8, and the Saudi edition will take place at Snap Inc.’s Riyadh office from Feb. 18 to 19.

“The Riyadh edition of the Young Lynx Academy, in partnership with Publicis Groupe Middle East, is designed to be an immersive experience that challenges young professionals to think creatively and push their boundaries,” Kamille Marchant, director of Dubai Lynx, told Arab News.

On the first day, participants will meet the mentors who will guide them through the event. The day will also feature keynote speeches from industry experts, networking opportunities, and an introduction to the “centerpiece” of the event, a 24-hour hack challenge, Marchant explained.

On the second day, participants will focus on tackling the brief and present their ideas to a panel of judges. They will be required to work collaboratively on a real-world brief under time constraints, which encourages not just innovative thinking but also teamwork, adaptability, and problem-solving under pressure, she added.

The event will conclude with the announcement of the winning presentation.

Applications are now open, and the winners will be recognized at the Dubai Lynx Awards ceremony on April 9 at the Emirates Golf Club.


Pope Francis warns of ‘fanaticism, hatred’ in social media

Pope Francis (R) waves as he leaves the weekly general audience at Paul-VI hall in the Vatican on January 22, 2025. (AFP)
Updated 25 January 2025
Follow

Pope Francis warns of ‘fanaticism, hatred’ in social media

  • The pope’s admonition comes as X, owned by Elon Musk, has been accused of spreading false information while interfering in European politics, in particular for attacking leaders including German Chancellor Olaf Scholz and British Prime Minister Keir Starm

VATICAN CITY: Pope Francis denounced an era of “disinformation and polarization” on Friday in a message for World Communications Day, as he criticized powerful social networks creating “fanaticism and even hatred.”
In saluting journalists, he spoke of their collective responsibility working “in these our times, characterised by disinformation and polarization, as a few centers of power control an unprecedented mass of data and information.”
The 88-year-old pope — who has warned in the past of the dangers of new technologies, including social media and artificial intelligence — did not cite Facebook or X by name, but his target was evident.
“Too often today, communication generates not hope, but fear and despair, prejudice and resentment, fanaticism and even hatred,” the pope wrote in his message.
“All too often it simplifies reality in order to provoke instinctive reactions; it uses words like a razor; it even uses false or artfully distorted information to send messages designed to agitate, provoke or hurt.”

FASTFACTS

• The 88-year-old pope — who has warned in the past of the dangers of new technologies, including social media and artificial intelligence — did not cite Facebook or X by name, but his target was evident.

• In a speech quoting Martin Luther King Jr., Francis said he dreamed of ‘communication that does not peddle illusions or fears, but is able to give reasons for hope.

The pope’s admonition comes as X, owned by Elon Musk, has been accused of spreading false information while interfering in European politics, in particular for attacking leaders including German Chancellor Olaf Scholz and British Prime Minister Keir Starmer.
The billionaire also used his platform and vast wealth to help propel Donald Trump to the White House.
Meta has also come under fire after its chief Mark Zuckerberg said this month that Facebook would end its third-party fact-checking program in the United States, in what critics warned would further fuel false information online.
In a speech quoting Martin Luther King Jr., Francis said he dreamed of “communication that does not peddle illusions or fears, but is able to give reasons for hope.”
He warned, however, of algorithms that feed social media users information that is specifically catered to their interests and prejudices.
Such “digital systems... by profiling us according to the logic of the market, modify our perception of reality,” he said.
“As a result, we witness, often helplessly, a sort of atomization of interests that ends up undermining the foundations of our existence as a community, our ability to join in the pursuit of the common good, to listen to one another and to understand each other’s point of view.”
Earlier this month, in his New Year’s address to Vatican diplomats, Francis lamented increasing polarization in society, “aggravated by the continuous creation and spread of fake news.”
Francis himself is a frequent target of unfounded rumors and manipulated photos online.

 


Fearless Saudi 13-year-old launches Vision 2030 podcast

Updated 24 January 2025
Follow

Fearless Saudi 13-year-old launches Vision 2030 podcast

  • Teenager aims to educate the public about Kingdom’s vision
  • Overcame public speaking fears to become podcaster

RIYADH: Saudi Linda Al-Faisal, who is only 13, aims to make an impact through her podcast, Linda Vision 2030, with each episode featuring a guest trailblazer.

Through her podcast, she connects with thousands of local and international subscribers, engaging in conversations about the Kingdom’s vision.

In her first episode, titled “How Saudi Arabia Became a Global Hub,” she discusses the projects being driven by the Kingdom, led by Crown Prince Mohammed bin Salman, claiming “Saudi Arabia is no longer the land you once knew.”

In her third episode, Al-Faisal interviewed Tamim Turki, a teenage Saudi sports presenter.

Then, in her fourth episode, Al-Faisal sat down Hassan Yusuf, program director for Saudi Arabia’s Real Madrid foundation, where the pair discussed the role of youth in achieving the goals of Vision 2030.

When she was five years old, Al-Faisal was interested in becoming a ballerina, and after being enrolled in classes she later fulfilled her childhood dream. Today, she is a ballerina as well as a podcast host.

Influenced by her friends, who have their own podcast, Al-Faisal decided to create her own platform.

“Why I chose (the topic of) Vision 2030 is because many people don’t know what it talks about or what is going to happen. So, I decided to search and learn more about Vision 2030 so I can teach the people.

“The biggest goal that I want to achieve from my podcast is that I want to make every listener feel proud with all the developments and changes happening in Saudi Arabia.”

After years of presenting at school, facing her fears, Al-Faisal became a natural public speaker, learning communication techniques through observation and practice to become an effective presenter.

“I used to be nervous while presenting during my first time in school. We all learn from our mistakes, and I learned from mine and became stronger. The speeches I used to present in school made me more powerful.”

Al-Faisal’s ballet talent earned her third place in the “Creative Journey Around the Kingdom,” a program launched by the General Entertainment Authority in collaboration with MBC Academy, which sets out to identify local talent.

Al-Faisal’s message to teenagers is to keep dreaming and always stay positive.

“Do not let negative thinking destroy you. Always focus on yourself because you are the main character of your life.”


Sky News Arabia opens new headquarters, announces fresh programming

Updated 23 January 2025
Follow

Sky News Arabia opens new headquarters, announces fresh programming

DUBAI: Sky News Arabia, part of media group IMI, has opened its new headquarters in the same building as the IMI HQ on Yas Island, Abu Dhabi.

The new HQ features advanced broadcasting studios fitted with the latest AI technologies, the company said.

Sky News Arabia has also launched a new programming grid covering politics, lifestyle, sports, business and entertainment.

The announcements come 12 years after the channel’s launch.

They mark a new chapter that “embodies our forward-thinking strategy to anticipate and exceed audience expectations by embracing cutting-edge technologies and delivering diverse, engaging programming that transcends borders, setting new benchmarks for excellence,” said Rani Raad, CEO of IMI and president and operating partner of Redbird IMI.

The company has been working over the past year to elevate “the way each of the media companies within our network engage with audiences, to ensure we continue to deliver content that truly resonates,” he added.

The new programming will include shows such as “Studio One” hosted by Fadila Souissi, which will highlight political and societal issues, and the “Emad Eldin Adib” show, which will focus on politics in the Arab world.

Sky News Arabia is also expanding its lineup of non-political shows. The “Al Sabah Show” will return, featuring segments on health, fashion, law, and celebrities. It will be hosted by Maha Abdullah, Ahmed Qassem, Hani Ziadeh, Christine Dagher and Lubna Mansour.

The show will extend to digital channels and social media platforms through 12 specifically tailored mini-segments.

“In an era of rapid change and information overload, we are committed to empowering our audience with the tools to navigate and discern credible news,” said Nadim Koteich, general manager of Sky News Arabia.

He added: “By providing transparent, engaging and diverse content across politics, economics, lifestyle and technology, we ensure that Sky News Arabia remains a credible source of information that meets the dynamic needs of our viewers.”


Benefits of AI economy must be equitably distributed, says UN tech envoy in Davos

Updated 23 January 2025
Follow

Benefits of AI economy must be equitably distributed, says UN tech envoy in Davos

  • Amandeep Singh Gill seeks ‘global’ efforts to tackle digital divide
  • ‘We need to have a more collaborative and respectful approach’

DAVOS:The power of artificial intelligence and quantum computing must be harnessed to benefit nations across the world, not only developed economies, said Amandeep Singh Gill, the UN’s envoy on technology, on Thursday.

Speaking during a panel titled “From High-Performance Computing to High- Performance Problem Solving,” Gill said that countries in Africa, for example, hold less than 0.5 percent of graphic processing units worldwide.

Also participating in the discussion were Georges-Olivier Reymond, co-founder and CEO of PASQAL; Ana Paula Assis, senior vice president and chair IBM EMEA and Growth Markets; and Paul Alivisatos, president of the University of Chicago.

“My challenge is to convince policymakers who have limited resources to invest in the digital divide, data and AI and quantum development as well,” explained the envoy.

“There is a backlash against the neo-colonial situation, where the tech is developed in just a few geographies, and the rest of the world is takers of this tech. You can call it the sovereignty backlash … we need to have a more collaborative and respectful approach,” he added.

When asked by panel moderator Azeem Azhar, CEO of Exponential View, about the risk of uncertainty in the field of quantum computing, Gill said he sees an opportunity more than a risk.

“We are at an early stage in terms of the science and technology of developing things so different technologies might be used. A degree of uncertainty and diversity is important,” he added.

But the envoy emphasized the need to have a unified global force that would ensure everyone can participate in this area of technology.

“When we look at the global majority, not everyone will be able to use quantum computing, the cryptographic effort has to be global, it can’t be isolated,” he said.

Gill said the world is shifting toward quantum infrastructure in order to reduce energy consumption. According to the envoy, today’s AI systems consume a great deal of energy.

The UN deemed 2025 as the “International Year of Quantum Science and Technology.” This initiative aims to celebrate quantum mechanics and educate people on its impacts on technology, culture, and understanding of the world.