The global digital advertising market. What's happening?
May 2023.

If you work in the advertising market, then we have good news for you - the advertising market is recovering. Unexpectedly for everyone, companies such as Microsoft and Apple entered the market. There were also rumors that Tesla is ready to invest in advertising.

Image Source - Library of Congress
In the case of Tesla, in my opinion, this is more related to the saturation of the market of loyal customers. Yes, and a different approach is needed for the recently launched Tesla 3, designed for mass consumer consumption. The audience devoted to the brand is already saturated with models from Y to X. And for the mass consumption of the Tesla 3, an advertising company and a fresh idea are needed, some added value that can sway the buyer towards Tesla compared to the huge selection of cars in this market segment. Such an example of added value is described by us in the article "Tesla Autopilot - Innovation or Profanity?"

And what does the appeared advertisement of Apple and Microsoft tell us? One might think that this is a good sign for the advertising industry. This is true and this is good news for the advertising business, but for how long? Usually, start-ups launch aggressive advertising. These startups may already be 3 or 8 years old, the main thing here is not the age of the company, but at what stage in the development of international business it is. So, for example, Revolut's advertising has been catching up with us in different countries over the past year.

As for corporations such as Microsoft or Apple, which have developed businesses, long-established sales models, and supply chains, the advertising they launched at the same time speaks of a catastrophic drop in the level of income of the population, the fall that these companies have already begun to feel and were forced to launch an advertising company to try to restore the previous level of income.

Of course, the covid years influenced the decline in incomes of the population, we wrote about this in the article “Crypto. Past. The present. Future." But from what sources will the welfare of citizens suddenly begin to increase today? Business revenues have also fallen over the covid years, and part of the business began to survive worsening conditions for employees, reducing their salaries under various pretexts. And the second part, which has increased many times in recent years, went into crypto financing of projects without paying taxes and led to an imbalance in the global financial system.

Therefore, it is safe to say that the launched advertising campaigns of Microsoft and Apple will not bring them the desired result, since the destruction of the financial system is much deeper than just the recovery of demand after the Covid epidemic. And although advertising often works wonders, in this case, advertising is powerless without restoring the purchasing demand of the population, restoring people's income levels, and increasing their expectations and confidence in the future.

After all, it is people who buy goods and order services. And the tax-free financing of many companies and banks associated with going into crypto has led to a disruption in the work of entire institutions, such as social benefits and pension payments, which entails a chain of falling incomes for numerous employees who serve these segments of the population and has the effect of multiplying the fall in income.

What future awaits us in the near future? There are two development scenarios. The first scenario is presented by us in the articles:

Inflation for dummies. Or how to reduce the negative impact of inflation.

"New Cryptocurrencies Tax from 01 August 2023. How to restore the Reputation of Cryptocurrencies.".

In the first scenario, the crypto investments of individuals and companies are separated and invested in separate projects. Taxation of crypto for companies is introduced, which returns revenues to social services, equalizes the taxation process for all market participants, and eliminates the unfair competitive advantage provided by cryptocurrencies. And corporate funds are invested in the Aething application, which allows us to quickly restore people's purchasing power, increase their confidence in the future and stimulate economic growth.

In the second scenario, we can do nothing and watch how corporations like Microsoft and Apple will be forced to start massive layoffs of staff, which will create a burden on the labor market and lead to a fall in salaries, which will accelerate the involvement of new companies in crypto financing and reduce the already drying up river of social payments. To what level will this fall occur? I don't know. But world history remembers examples of the Great Depression when the incomes of the general population also fell.

Today, there is an opinion of various Gestalt therapists and fortunetellers on a glass ball who say that after a pandemic there always comes a rise due to an improvement in the emotional background. But the reality of our life is such that economic principles and business are primary. The economy doesn't recover just because someone's mood improved. And it will be honest to say that many people are not very positive about reducing or eliminating payments, no matter what the fortune tellers say.

May 26 / 2023

Text author: Ihar Kul

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