Help Wanted: Some Advertisers Increase Spending During The Great Resignation
During the Great Resignation, despite ongoing job market challenges and rising tuition costs, advertisers in sectors like education, industry, financial software, and business software have significantly increased spending—colleges boosted ad budgets by 79% to attract students amid enrollment declines, scholarship advertising surged over 3,000%, and specialty vocational programs saw an 11-fold increase in advertising as workers reconsider careers and education paths.
Don’t let the recent job growth fool you—the US job market is facing significant challenges.
In 2020, the unemployment rate reached 14.7%, the highest since The Great Depression. Many people who lost their jobs remained unemployed for more than a year. While the pandemic forced many companies to lay off employees, a significant number of people also left their jobs voluntarily. This phenomenon is known as the Great Resignation, where people quit due to dissatisfaction with pay, growth opportunities, benefits, and more.
The increase in resignations has forced businesses to adapt and has also led to increased ad spending in sectors such as Education & Training, Industry, Financial Software, and Business Software.
To School or Not to School?
People often debate the necessity of higher education. Some see it as essential for career advancement, while others view it as unnecessary. Regardless, learning remains a lifelong pursuit, and this desire for knowledge is influencing advertisers in the education industry.
For example, advertisers for colleges and universities spent 79% more during the first half of this year compared to H1 2021. This increased spending comes as they welcome students back and attempt to reverse plateauing or declining enrollment trends. The Great Resignation may help, as some people use time off to reevaluate their careers, potentially returning to school for high-demand fields like healthcare, software development, and product management.
However, the rising cost of tuition remains a barrier. Between 1980 and 2020, the average price of tuition for an undergraduate degree increased by 169%. In response, advertisers have increased spending on scholarship programs by 3,012% year-over-year in H1 2022.
College Isn’t for Everyone
Colleges and universities face competition from specialty programs, such as those in trucking and construction. Advertisers for these programs have increased their budgets significantly, with spending up 11x and 13x year-over-year, respectively. These programs offer opportunities for stable, well-paying careers, appealing to many affected by the Great Resignation.
Other higher-education alternatives, like culinary school, painting, photography, and acting, are also seeing increased ad spending. As traditional education costs rise and the stigma around trade schools fades, spending from these advertisers is likely to continue or grow. For example, KEYi Tech, which makes STEAM robots for kids, increased ad spending by almost 120% YoY in H1, while Canon increased spending by 374% as photography became a popular outlet.
Cash is King, Especially for Younger Generations
The 2020s have forced many to use their savings, tap into retirement funds, and find ways to support themselves. This has brought personal finance and money management into focus, prompting advertisers in the financial sector to increase spending.
JP Morgan Chase, for example, spent more than $19 million to promote Chase MyHome, responding to the volatile housing market and the desire of Millennials to settle down. Intuit, the company behind Quickbooks and TurboTax, increased spending by 128% YoY to nearly $200 million. These companies see opportunities to help younger generations navigate the financial world.
Interest in cryptocurrency is also driving ad spending. Crypto.com increased spending for its app by more than 860x in H1 of this year, showing the diversity in financial advertisers’ strategies.
HR Teams and Hiring Managers Change Their Ways
Businesses are adapting to the Great Resignation by offering higher pay, better benefits, and more career advancement opportunities. These changes are essential for long-term success, but companies also need to fill positions and maintain productivity now.
The hiring landscape has changed, with remote work and freelancing becoming more common. As a result, the HR software market is booming. Advertisers for HR software increased spending by 417% YoY in H1. BambooHR increased spending by nearly 280x, and Globalization Partners by 12x, as companies adjust to remote-first hiring.
HR teams and hiring managers rely on these tools to navigate the evolving job market, especially as they face high turnover.
The Great Resignation: A Launching Pad for Some Advertisers
Effective advertising involves responding to current events and trends. The growth of online gaming during the pandemic, for example, led advertisers to invest more in YouTube’s gaming channels. Similarly, the Great Resignation has prompted increased ad spending in several sectors and will likely continue to influence advertiser strategies as people leave their jobs in search of new opportunities.
For more insights, sign up for MediaRadar’s blog.
Related
2023 MediaRadar Prediction: Beauty Advertisers Take Advantage of the Lipstick Effect
The 2023 MediaRadar report highlights that despite mixed signals like a 10% drop in Estée Lauder’s makeup sales, beauty advertisers capitalized on the "lipstick effect" during economic downturns—evidenced by a 48% surge in lipstick sales in Q1 2022—and overall beauty ad spending rose 13% to $4.6 billion through October 2022, with top categories including anti-aging skincare, cosmetics, deodorant, haircare, and skincare, which is projected to grow to a $145 billion market by 2028, indicating continued robust advertising investment into 2023.
2023 Advertising Prediction: Retail Advertisers Continue Ramping Up Spend
In 2022, despite economic challenges like inflation and recession fears, U.S. retail advertisers significantly increased their spending—totaling $11.1 billion through Q3 with a 13% year-over-year rise—particularly in categories such as general retail, food and drug, apparel, home furnishings, and online department stores, signaling strong confidence in consumer demand heading into 2023.
2023 MediaRadar Prediction: Agriculture Advertisers Make it Rain on Traditional Ad Formats
In 2022, agriculture advertisers increased their ad spending by 7% to over $153 million, predominantly investing 70% in traditional print (48%) and TV (22%) formats despite digital media's rise, reflecting the industry's reliance on direct selling and traditional business models, with notable spending surges in Q1 and Q3 but declines later in the year, a pattern expected to continue into 2023.
12 Ads ‘til New Year: 12 New Advertisers in 2020
In 2020, amid the COVID-19 pandemic's drastic shifts in consumer behavior, 411,000 brands spent $81.27 billion on advertising across media, with 5,500 new brands—particularly from direct-to-consumer companies, subscription boxes, and OTT services—emerging prominently to meet the demands of quarantined and socially distanced audiences, as highlighted in a year-end series spotlighting twelve notable new advertisers.
2023 MediaRadar Predictions: Expect A Surge in Electric Vehicle Ad Spend
In 2022, electric vehicle advertisers increased their ad spend by 143% year-over-year to $228 million through Q3, driven by rising EV sales, government incentives like President Biden’s climate initiatives, and new regulations such as California’s 2035 zero-emission mandate, signaling a continued surge in EV advertising as the market grows toward a projected majority of U.S. passenger cars being electric by 2030.
Firearms & Accessories Advertising On the Rise in the US
In the first half of 2022, firearms and accessories advertisers in the US increased their spending by 21% year-over-year to over $67 million, with significant investments not only in promoting guns but also in body armor, driven by rising demand, safety concerns, and increased police funding despite ongoing calls for gun reform.