Global advertising poised to register 22.5% growth in 2021: Report

Global advertising to exceed $1 trillion in revenue during 2025

The report also forecasts 30.5% growth for digital advertising

GroupM has released its Global End-of-Year Forecast that estimates a much faster expansion in the advertising industry than previously anticipated. As per the latest This Year New Year Global Forecast, global advertising, excluding US political advertising, is expected to grow by 22.5% in 2021, up from its June estimate of 19.2% growth. Global advertising is now expected to touch $763.2 billion in 2021, as per the revised forecast. The momentum of ad spend growth is expected to continue in 2022 with an increase of 9.7%, compared to the June projection of 8.8% rise. Moreover, global advertising is expected to exceed $1 trillion in revenue during 2025 based upon our new estimates,” GroupM said in the report.

France, Germany, Australia, and the US market are projected to grow in a range of four to five percent annually on average, over the next five years. However, India, the UK, Brazil, Canada, Japan, and China are forecast to grow between six to eight percent annually on average, during the same period.

The report also forecasts 30.5% growth for digital advertising, excluding US political advertising, as against GroupM’s June forecast of 26% growth. In addition, digital advertising accounted for 64.4% of all advertising in 2021, up from 60.5% in 2020. Alphabet, Meta, and Amazon account for 80-90% of the global total, the report added.

Television advertising is expected to grow by 11.7% in 2021, up from June’s estimate of 9.3%. However, the industry is not expected to return to 2019 levels until 2023 due to the decline of 13.7% in 2020, the report mentioned.

“Subsequent years will be generally flat for television in most major markets around the world, as the largest advertisers that historically dominate the medium continue to incrementally shift their spending elsewhere. These shifts are offset in part by growing television budgets from the larger upstarts whose businesses are primarily online. Overall, total TV advertising should amount to $171 billion in 2022 and, of that figure, approximately $17 billion will go to Connected TV+,” the report stated.

Among other mediums, audio is expected to grow 15.6% in 2021 and 6.4% in 2022, while outdoor is expected to grow 17.1% in 2021 and 14.9% in 2022. Nonetheless, the growth of audio is expected to be largely flat beyond 2022, and outdoor is expected to see a mid-single digit growth.

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