IPG’s Magna, Publicis’ Zenith, and WPP’s GroupM recently released their forecasts for ad expenditure for the year 2021. The global ad marketing industries got hit hard by the pandemic, with a slight rebound in the second half of the year.
The three agencies had different specifics, but they all expect that digital media ad expenditure will grow much faster than traditional media to account for more than half of the world’s ad expenditure. As for the US, local TV got a boost from political ad.
Movies are expected to return to theatres in 2021, so they’re expecting that cinema advertising will go up for the year. Out-of-home ads are also expected to be the medium of choice for marketers compared to other forms of traditional media.
The gist of the forecasts are as follows:
- Global ad spending to hit $569bn, a year-over-year drop of 4.2%.
- Traditional media to drop by 18% from 2019 at $233bn.
- Digital media, meanwhile, grew by 8% to total to $336bn.
- Magna forecasts that 2020 digital media ad expenditure will account for 59% of the market share.
- Global ad spending to amount to a total of $620bn, a 5.6% growth rate.
- Zenith expects digital ad expenditure to grow by 1.4%, to account for 52% of the market share.
- Global ad expenditure is expected to go up to $651.1bn, a 10.2% increase from the preceding year, with Latin America (+24.4%) and the Asia Pacific (+14.1%) to lead the charge.
- GroupM expects digital made to account for 60.9% of total ad expenditure.
The ad agencies note that the ad industry can be quite volatile, something that anyone who handles king kong agency reviews is aware of, and was proven by 2020’s events.