Like most ad categories in 2020, ad spending in the home appliance sector took a hit, falling 1.4%. But the category has come roaring back and is expected to climb 12.6% this year to nearly $5 billion, according to a new forecast from Publicis Groupe media agency Zenith.
The report said many consumers saved money during the pandemic, due to lockdowns and the unavailability of restaurants, entertainment and other venues. Also, go-away vacations were largely restricted.
“After the initial shock during the first few months of the pandemic, consumers began spending some of these savings on making their homes more pleasant and efficient places to work, cook and relax in, which involved purchasing a lot of new or upgraded home appliances,” like stovetops, ovens, refrigerators, dishwashers and washer/dryers, the report states. “This has helped home appliance advertising outperform the ad market as a whole during both the downturn and the recovery.”
Home appliance brands spend more than half their budgets on digital advertising because home appliance sales shifted online ahead of other retail sales categories. Digital will be the category’s fastest growing channel through 2023, according to the Zenith report, growing at about 9% annually.
Despite the easing of some coronavirus restrictions, the report states that consumers will continue to spend more of their time and budgets at home, driving continued strong growth in home-appliance ad spend of 6% a year in 2022 and 2023.
The 12 markets covered in the report — accounting for 74% of spending in the category — are Australia, Canada, China, France, Germany, India, Italy, Russia, Spain, Switzerland, the U.K. and the U.S.
The full report can be accessed here.