While global advertising spend is on course to fall by 10.2% this year as a result of the COVID-19 outbreak, there are strong signs of recovery, finds WARC, the global marketing intelligence service.
Key takeaways from WARC’s Global Ad Trends 2020/21 report include:
- Ad spend is expected to fully recover by 2022, after the events of this year cut $63bn from the global advertising economy.
- All product categories are set to increase spend next year.
- Ad investment is forecast to rise by 6.7% next year.
- Online video had its prospects upgraded, as consumption leapt this year. Online video will lead growth in 2021 (+12.8%), following a 7.9% rise this year.
- The government & non-profit sector increased adspend in 2020.
According to the new projections, based on data from 100 markets worldwide, most traditional media are expected to see growth in 2021. Advertising spend from media brands is expected to top $70bn worldwide next year for the first time, growing 8.4% (up $5.5bn to $71.4bn).
While the online advertising market remained flat at $303.3bn, online video had its prospects upgraded in the latest forecast. Viewing leapt this year as nations imposed stay at home orders to quell the outbreak of the virus, and ad spend is on course to rise by 7.9% to $52.7bn this year and a further 12.8% in 2021.
All product categories are set to increase advertising investment next year, with travel & tourism (+19.5%) leading growth, though only three sectors – telecoms & utilities (+10.6%), media & publishing (+8.4%) and business & industrial (+5.3%) – will top their 2019 total.
Growth is expected in most corners of the industry next year.James McDonald, Head of Data Content, WARC
A sample report of WARC’s Global Ad Trends: State of The Industry 2020/21 is available to download here. The full report is available to WARC Data subscribers.