Home Business NewsBusinessBusiness Growth NewsBlack Friday digital advertising spend indicates a return to confidence

Black Friday digital advertising spend indicates a return to confidence

by LLB Reporter
24th Nov 21 9:20 am

Businesses are confident consumer spending habits will rise for this winter according to recent data supplied by accounting platform Dext.

Companies have spent far more than in previous years on Facebook, Google and LinkedIn advertising in 2021, anticipating a wave of spending around this yearโ€™s Black Friday, on 26 November 2021.

Based on 14,324 business transactions by UK Dext users in 2021, there has been a 24.55% increase in spending on Google advertising since October 2020.

Advertising on Facebook also recovered after an 8.28% decrease in year-on-year spending between October 2019 and October 2020.

Average Facebook spend rose 12.69% this year from ยฃ764 to ยฃ861 per transaction.

The biggest change since the pandemic has been the 75.97% increase in average spend for digital advertising on LinkedIn, which fell from ยฃ484 to ยฃ387 last October and has recovered to ยฃ681, based on 4,050 submissions.

Additional spending on B2C and B2B advertising suggests that businesses trust consumer demand will recover to pre-pandemic levels this year, despite the UKโ€™s sluggish 1.3% Q3 growth.

Dext Director Paul Ashfar said: โ€œLast year, many businesses erred against additional spending on digital advertising ahead of Black Friday ahead of anticipated lockdowns.

โ€œIt is encouraging that investment has now surpassed pre-pandemic levels and that businesses are positioning themselves for growth.

โ€œThese trends acknowledge that businesses trust consumers to spend this November– a promising sign of better things to come.โ€

Taken as a whole, spending habits in 2021 have steadily grown since last year. According to Dext business transaction data, in 2020 business reached a pandemic spending low of less than ยฃ2000 a month but climbed to over ยฃ6000 month in September 2021.

Average spend on Facebook and LinkedIn fell during the pandemic as consumer spending dried up.

Average spending on Facebook advertising for 2020 fell from ยฃ911 to ยฃ870 per transaction, and then rose to ยฃ897 this year.

Spending on LinkedIn followed a similar pattern, falling from ยฃ471 to ยฃ427 in 2020 and then rising to ยฃ473 per transaction.

Gathered from the Dext customer base of over one million users, these trends highlight a new faith that spending by businesses and consumers will continue to recover into the new year.

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