In September, an independent adtech company, Admixer, surveyed 43 brands and 50 advertising agencies from Europe to understand how they will shape their growth strategies and allocate marketing budgets in 2021. The CEE Marketing Spend Forecast 2021 aimed to gather the predictions for the future state of marketing from CMOs, digital executives, and marketers.
The results of the research reveal that 81% of brands and 74% of ad agencies expect their business to grow in 2021. 65% of surveyed brands believe that their marketing budgets will increase next year compared with 2020.
Agencies are slightly more cautious in their forecasts. While 58% of agencies believe that the situation will improve and clients will be more willing to invest in marketing activities, 20% of ad agencies don’t expect any major budget changes, and 22% of them predict that the budgets will decline.
Next year most businesses are going to be fairly conservative in their strategies. 76% of the brands surveyed will focus on the existing markets while only 19% are going to expand their business to new markets.
Amid the adverse effects of the 2020 crisis, 86% of brands say they are going to move some of their marketing activities in-house. This applies to SMM (67%), creative production, content marketing (65%), and PR (63%). The biggest budget reductions are expected in event marketing (19%) and offline advertising (18%).
The survey results indicate a gradual transition to programmatic buying methods. 63% of brands and 72% of agencies expect more ad-buying deals to be traded programmatically. In the meantime, direct deals with publishers and desktop campaigns continue to lose popularity.
The survey reveals that brands and advertising agencies are optimistic as to how the situation will develop in 2021. Although 86% of respondents believe that the pandemic will continue to influence marketing in the coming year, they still expect their businesses to grow. The majority of executives surveyed are expecting marketing budget growth and increasing investments in paid channels of acquisition, — Stanislav Shyshkin, Head of Research Group at Admixer, comments on the research findings.
In general, over 50% of respondents are planning to increase marketing budgets in 2021.