Digital transformation has changed the way companies advertise and reach their audiences. In the digital age in which we live, digital advertising strategies are crucial to business success. And to maximize the impact of these campaigns, advertising agencies, and providers are turning to innovative solutions to streamline and secure their financial transactions. Among these solutions, virtual corporate cards are emerging as the undisputed leaders.
When it comes to acquiring online advertising space, whether for your clients or for your own company, you face a big challenge in terms of management and budget. However, there is a solution that can change this dynamic: proper expense management.
Let's consider the figures: According to Statista, by 2024, the global digital advertising spending was forecasted to grow by 11 percent. The growth of mobile technology in the MENA region has helped with the increased use of digital advertising. Online advertisement spending in the MENA region was expected to grow by around 20 percent by 2024 with a significant share of spending targeting the GCC.
In this context, virtual corporate cards emerge as an ideal alternative to traditional corporate credit cards. In fact, these virtual cards have gained significant ground over time, and the statistics back this up: a study by Future Marketing Insights indicates that the virtual card market is projected to reach a value of $1.3 trillion by 2032, with an estimated growth of 12.2% between 2022 and 2032.
In the intricate world of marketing, especially when you manage multiple online accounts, keeping accurate track of what is spent on ads for different platforms can become as chaotic a task as trying to spot a straw in a haystack. But what if we told you there was a solution that could straighten out this winding path?
Just imagine: you're in an advertising agency with a diversified portfolio of clients, each with their own projects, campaigns, and accounts. And to top it off, you're using a company credit card to make payments. The perfect recipe for financial mess. You're faced with potential waste, countless phone calls to the bank, inaccurate expense records, and a massive headache for your team.
But wait, there's more. Credit cards, like sharp detectives, are always on the lookout for the possibility of fraud. At any hint of suspicious activity, wham, they're blocked without a second thought. So, imagine you have several advertising accounts, each with its own card, and one of them gets blocked. The result? A monumental chaos of numbers, accounts, and paperwork.
Plus, using a credit card for each advertising account is like having a "Steal Here" sign for cybercriminals. The greater the exposure, the greater the risk. For your finance team, this scenario is worse than solving a complex puzzle underwater: they must reconcile piles of invoices, and account statements and, to top it off, track spending activity across different advertising platforms. All of this not only takes valuable time but also takes the team away from truly strategic and creative tasks.
And the story doesn't end there. When you venture into the international arena, conventional credit cards start to generate additional charges and managing payments in different currencies becomes a real nightmare.
The rapidly evolving world of digital advertising has led to a growing demand for efficient and secure payment methods that integrate seamlessly into the digital ecosystem. This is where virtual corporate credit cards come into play, providing a reliable and effective solution to the financial complexities of the digital world.
According to an analysis by Tribal, over the past 18 months, we have witnessed a remarkable shift in the way online ad payments are made. Virtual corporate credit cards have been used in around 400 transactions per transfer, underscoring their growing popularity as a preferred payment method on social and digital platforms.
But here comes the really interesting part: a 32% increase in digital advertising payments with virtual corporate cards during the first half of 2023! Compared to the same period last year, this increase demonstrates confidence in the effectiveness and security of virtual cards in an ever-changing environment.
The trend continues in the second quarter of 2023, with a 6% increase in online ad payments with these cards. This data only supports the notion that advertising agencies are finding virtual corporate cards to be a reliable and efficient ally in their financial transactions.
And if you are thinking ahead, look forward to a second half of the year full of opportunities. Double-digit growth in online ad payments with virtual corporate cards is expected during this time, further consolidating their position as a leading payment vehicle in the online advertising industry.
And you already have a virtual corporate credit card as an ally to pay for your digital advertising? One that offers you efficiency, security and simplicity in a single package? At Tribal we are here to be your best financial ally in different sectors, such as agriculture and manufacturing, and we want to invite you to a new approach that could revolutionize the way you handle your online ad payments.