160 Kemp House, City Road, London EC1V 2NX 812 (345) 6789 Support@webart-studio.com
Revenue attribution, digital titans, advertising & AI forecasts

30-second summary:

  • The top most valuable companies of 2020 were Apple ($ 1,993 billion), Microsoft ($ 1,588 billion), Amazon ($ 1,578 billion), and Google ($ 1,046 billion).
  • Apple was the leader in consumer electronics sales of $ 65 billion in Q4 2020.
  • As the iPhone 12 series promises will improve the AR experience, creating potential AR advertising spend Exceed $ 8 billion by the end of 2024.
  • Only 36% of marketing managers have a measurable revenue allocation strategy in place, while only 15% are in the process of implementing a strategy.
  • 95% of marketing directors see success in an implemented revenue allocation strategy, while 31% describe this success as best-in-class.
  • The four main departments involved in implementing a revenue allocation strategy are Marketing, Sales, Board of Directors, and Customer Service.
  • According to Statista The digital advertising market is projected to reach $ 398 billion in revenue in 2021.
  • Global AI sales are projected to reach $ 35 billion in 2021, with catalyzed triple growth of up to $ 126 billion by 2025.
  • North America ($ 15 billion) is the largest market for AI software. Asia-Pacific ranks second ($ 10 billion) and Europe third ($ 8 billion).
  • Familiarize yourself with details on challenges, key industry players, patents, and more.

Hello, 2021! Marketing executives have struggled to keep up with the ups and downs of 2020, and after defying these tides, there is increased pressure to demonstrate ROI and sales success through their marketing efforts and investments. This week, we’re giving you a periscopic overview of the revenue allocation strategy for 2021, the challenges, the industry leaders, and refined details on digital advertising forecasts, AI, and how Apple can potentially raise billions on AR advertising.

Digital titans

We determined what 2020 was like for the titans of the industry and what 2021 will bring. A fine comb from Statista’s latest ‘Digital Economy Compass‘:

  • Google advertising suffered a loss of -8% (compared to 2019) and closed with a worldwide turnover of 29.9 billion US dollars
  • Facebook share prices rose steadily through the third quarter of 2020, with revenue of $ 21.1 billion and net income of $ 7.8 billion (27% growth from Q3 2019).
  • Facebook and Instagram cost-per-mille (CPM) and cost-per-click (CPC) in US dollars were $ 2.70 and $ 0.35, respectively, through October 2020
  • Gaming is an ideal place for investment, acquisitions, and growth as Microsoft strengthened its COVID-19 resilient gaming business with an investment in ZeniMax Media
  • The top most valuable companies of 2020 were Apple ($ 1,993 billion), Microsoft ($ 1,588 billion), Amazon ($ 1,578 billion), and Google ($ 1,046 billion).

The big Apple spotlight

Apple has been one of the most adaptable product and distribution strategies, focusing on the impact of COVID-19 on consumer behavior. This led to a growth of 18% in the total COVID-19 products, which were further broken down into the following segments:

  • Wearables, home and accessories: + 23% (compared to 2019)
  • Service: + 17% (compared to 2019)

Apple Sales 2020 – The Consumer Electronics Leader

Apple was the leader in consumer electronics sales of $ 65 billion in Q4 2020. As mentioned above, adaptability to new consumer behavior in Q1 2020 has helped Apple continue to be the front runner.

Apple is a leader in electronics sales

The AR move and advertising spending are increasing

With its latest iPhone 12 series, it promises to be the most advanced rear lidar (light detection and ranging) camera that improves the AR experience and enables potential AR advertising spend Exceed $ 8 billion by the end of 2024.

Apple and AR advertising 2021

Revenue Allocation – But what is the strategy?

DemandLab’s’Sales Allocation Surveysurveyed marketing directors about their revenue allocation plans, challenges, and budgets, and here are some Key results:

  • 95% of marketing directors see success in an implemented revenue allocation strategy, while 31% describe this success as best-in-class
  • The four main departments involved in implementing a revenue allocation strategy are Marketing, Sales, Board of Directors, and Customer Service
  • 58% agree to use a mix of internal and external resources to implement and optimize revenue allocation
  • 10% of marketing directors have outsourced the data aggregation part of the revenue attribution strategy

Current scenario, budget allocation and benefits

Only 36% of marketing managers have a measurable revenue allocation strategy in place, while only 15% are in the process of implementing a strategy.

Only 36% of marketing directors have a revenue allocation strategy in place

43% of marketing directors are keeping their budgets, while 32% are increasing their revenue allocation budgets.Budget for the allocation of revenue for 2021

The top five benefits of a revenue allocation strategy

Executives also saw these as the top five benefits of a revenue allocation strategy:

  1. Better decision making – 59%
  2. Marketing and Sales Alignment – 44%
  3. Campaign Optimization – 38%
  4. Increased channel effectiveness – 37%
  5. Allocation of ROI to Marketing – 29%

The most challenging channels to analyze revenue attribution

Proving marketing ROI is challenging, but this list includes the exact channels that are critical to analyzing sales success:

  • Social Media Marketing (SMM) – 44%
  • Content Marketing – 39%
  • Display advertising – 38%
  • Email Marketing – 33%
  • Video Marketing – 28%
  • Paid search – 23%
  • SEO – 18%

Revenue Allocation Strategy – Barriers to Success

Collecting, analyzing, and sharing the data plays an important role in measuring success. These were the obstacles that stood:

Revenue Allocation - Barriers to Success

Digital Advertising Forecast 2021 – Deep Dive

According to Statista’s latest ‘Digital Economy CompassThe digital advertising market is projected to reach $ 398 billion in revenue by 2021 and will continue to grow to $ 470 billion by 2025.

Digital Advertising 2021 – Market Segments

Search engine advertising will have a lion’s share of the market. Here is a full breakdown of the forecast market revenue for 2021:

  1. Search Advertising – $ 175 billion
  2. Social Media Advertising – $ 114 billion
  3. Banner Ads – $ 59 billion
  4. Video Advertising – $ 31 billion
  5. Classified Ads – $ 20 billion

In fact, this hierarchy will remain proportionate through 2025.

Important players in the industry

There are a wide range of industries in the digital advertising industry, namely –

  • Agencies and trade counters
  • DSPs (Demand Side Platforms)
  • Advertising networks
  • SSPs (supply-side platforms)
  • publishing company

Statista created an interesting landscape view of the key players in the industry (see below).

Key players in the digital advertising industry

AI Forecast 2021 – Industry, Leading Regions, and Patent Holders

Global AI sales are projected to be $ 35 billion in 2021, with catalyzed 3-fold growth of up to $ 126 billion by 2025. The industry already sees thousands of patents from technology giants. These are the top AI filing patent holders:

  1. Microsoft
  2. IBM
  3. Samsung
  4. Qualcomm
  5. Google

AI industry forecast 2021

According to Statista’s forecast for 2021, North America ($ 15 billion) will be the largest market for AI software. Asia-Pacific ranks second ($ 10 billion) and Europe third ($ 8 billion).

KI - Regional guides

ClickZ reader selection for the week

This week, our readers were keen to learn insights into how, where, and when to reach their target customers through email and content marketing, followed by the retail and marketing trends outlined for 2021.

  1. Key Findings: 2021 Strategic Pearls for Email and Content Marketing
  2. Five retail and marketing trends for 2021
  3. The forecast for digital marketing for 2021

Leave a Reply