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.)
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Updated 22 October 2021
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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.


South Sudan lifts suspension of Facebook and TikTok

Updated 28 January 2025
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South Sudan lifts suspension of Facebook and TikTok

  • Ban was imposed last week following the circulation of videos depicting the alleged killings of South Sudanese nationals in Sudan

JUBA: South Sudan authorities have lifted the temporary ban on Facebook and TikTok, which was imposed last week following the circulation of videos depicting the alleged killings of South Sudanese nationals in Sudan.
The graphic images, which sparked violent protests and retaliatory killings across the country, have been removed from the social media platforms, the National Communications Authority said in a Jan.27 letter to telecoms and Internet providers
“The rise of violence linked to social media content in South Sudan underscores the need for a balanced approach that addresses the root causes of online incitement while protecting the rights of the population,” Napoleon Adok Gai, the director of the National Communications Authority, said in the letter.
Rights groups blamed the Sudanese army and its allies for ethnically-targeted attacks on civilians in Sudan’s El Gezira state earlier this month, after they captured the state capital Wad Madani from the paramilitary Rapid Support Forces.
The Sudanese army condemned what it called “individual violations,” which were captured on video and shared widely on social media.


Pakistan outlaws disinformation with 3-year jail term

Updated 28 January 2025
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Pakistan outlaws disinformation with 3-year jail term

  • The law was rushed through the National Assembly with little warning last week

ISLAMBAD: Pakistan criminalized online disinformation on Tuesday, passing legislation that enshrines punishments of up to three years in prison, a decision journalists say is designed to crack down on dissent.
“I have heard more ‘yes’ than ‘no’, so the bill is approved,” Syedaal Khan, deputy chair of Pakistan’s Senate, said amid protest from the opposition and journalists, who walked out of the gallery.
The law targets anyone who “intentionally disseminates” information online that they have “reason to believe to be false or fake and likely to cause or create a sense of fear, panic or disorder or unrest.”
The law was rushed through the National Assembly with little warning last week before being presented to the Senate on Tuesday, and will now pass to the president to be rubber stamped.


Trump says Microsoft is in talks to acquire TikTok

Updated 29 January 2025
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Trump says Microsoft is in talks to acquire TikTok

US President Donald Trump told reporters on Monday that Microsoft is in talks to acquire TikTok and that he would like to see a bidding war over the app.
Microsoft and TikTok did not immediately respond to Reuters’ requests for a comment outside regular business hours.
Trump has previously said that he was in discussions with several parties about purchasing TikTok and expects to make a decision on the app’s future within the next 30 days.
The app, which has about 170 million American users, was briefly taken offline just before a law requiring ByteDance to either sell it on national security grounds or face a ban took effect on Jan. 19.
Trump, after taking office on Jan. 20, signed an executive order seeking to delay by 75 days the enforcement of the law that was put in place after US officials warned that there was a risk of Americans’ data being misused under ByteDance.


DeepSeek: Chinese AI firm sending shock waves through US tech

Updated 28 January 2025
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DeepSeek: Chinese AI firm sending shock waves through US tech

  • The program has shaken up the tech industry and hit US titans including Nvidia, the AI chip juggernaut that saw nearly $600 billion of its market value erased, the most ever for one day on Wall Street

BEIJING: Chinese firm DeepSeek’s artificial intelligence chatbot has soared to the top of the Apple Store’s download charts, stunning industry insiders and analysts with its ability to match its US competitors.
The program has shaken up the tech industry and hit US titans including Nvidia, the AI chip juggernaut that saw nearly $600 billion of its market value erased, the most ever for one day on Wall Street.
Here’s what you need to know about DeepSeek:
DeepSeek was developed by a start-up based in the eastern Chinese city of Hangzhou, known for its high density of tech firms.
Available as an app or on desktop, DeepSeek can do many of the things that its Western competitors can do — write song lyrics, help work on a personal development plan, or even write a recipe for dinner based on what’s in the fridge.
It can communicate in multiple languages, though it told AFP that it was strongest in English and Chinese.
It is subject to many of the limitations seen in other Chinese-made chatbots like Baidu’s Ernie Bot — asked about leader Xi Jinping or Beijing’s policies in the western region of Xinjiang, it implored AFP to “talk about something else.”
But from writing complex code to solving difficult sums, industry insiders have been astonished by just how well DeepSeek’s abilities match the competition.
“What we’ve found is that DeepSeek... is the top performing, or roughly on par with the best American models,” Alexandr Wang, CEO of Scale AI, told CNBC.
That’s all the more surprising given what is known about how it was made.
In a paper detailing its development, the firm said the model was trained using only a fraction of the chips used by its Western competitors.
Analysts had long thought that the United States’ critical advantage over China when it comes to producing high-powered chips — and its ability to prevent the Asian power from accessing the technology — would give it the edge in the AI race.
But DeepSeek researchers said they spent only $5.6 million developing the latest iteration of their model — peanuts when compared with the billions US tech giants have poured into AI.
Shares in major tech firms in the United States and Japan have tumbled as the industry takes stock of the challenge from DeepSeek.
Chip making giant Nvidia — the world’s dominant supplier of AI hardware and software — closed down seventeen percent on Wall Street on Monday.
And Japanese firm SoftBank, a key investor in US President Donald Trump’s announcement of a new $500 billion venture to build infrastructure for artificial intelligence in the United States, lost more than eight percent.
Venture capitalist Marc Andreessen, a close adviser to Trump, described it as “AI’s Sputnik moment” — a reference to the Soviet satellite launch that sparked the Cold War space race.
“DeepSeek R1 is one of the most amazing and impressive breakthroughs I’ve ever seen,” he wrote on X.
Like its Western competitors Chat-GPT, Meta’s Llama and Claude, DeepSeek uses a large-language model — massive quantities of texts to train its everyday language use.
But unlike Silicon Valley rivals, which have developed proprietary LLMs, DeepSeek is open source, meaning anyone can access the app’s code, see how it works and modify it themselves.
“We are living in a timeline where a non-US company is keeping the original mission of OpenAI alive — truly open, frontier research that empowers all,” Jim Fan, a senior research manager at Nvidia, wrote on X.
DeepSeek said it “tops the leaderboard among open-source models” — and “rivals the most advanced closed-source models globally.”
Scale AI’s Wang wrote on X that “DeepSeek is a wake up call for America.”
Beijing’s leadership has vowed to be the world leader in AI technology by 2030 and is projected to spend tens of billions in support for the industry over the next few years.
And the success of DeepSeek suggests that Chinese firms may have begun leaping the hurdles placed in their way.
Last week DeepSeek’s founder, hedge fund manager Liang Wenfeng, sat alongside other entrepreneurs at a symposium with Chinese Premier Li Qiang — highlighting the firm’s rapid rise.
Its viral success also sent it to the top of the trending topics on China’s X-like Weibo website Monday, with related hashtags pulling in tens of millions of views.
“This really is an example of spending a little money to do great things,” one user wrote.


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

Updated 27 January 2025
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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.