Research by advertising research firm WARC that covered 100 markets worldwide showed that 2020 was the worst year on record for traditional advertising media, while the online market failed to record growth for the first time since the Dotcom crash.
Ad spend excluding political campaigning was down by 11 per cent to $US552 billion this year with the rate of decline double that of the last recession in real terms. The automotive, retail, and travel and tourism sectors all cut ad budgets sharply this year, WARC has revealed.
Other key findings included:
- Media owners saw revenues fall by a combined $US63 billion in 2020.
- Ad market decline this year is double that of the Great Recession after accounting for inflation.
- Ad investment is forecast to rise by 6.7 per cent next year, meaning only 59 per cent of this year’s losses will be recouped.
- The majority of ad money will be transacted by machines for the first time in 2021.
- Online video is the only format to have its 2020 growth estimate upgraded, and it will lead growth in 2021.
- All product categories are set to increase spend next year, though only three will top their 2019 total.
The latest WARC data appears a little more dramatic than similar research released by GroupM yesterday that found global ad spends had fallen by 5.8 per cent on an underlying basis (excluding-US political advertising).
However it was a much better expectation than GroupM’s June forecast of an 11.9 per cent decline for 2020, but still a sharp fall from 2019’s 8.7 per cent growth rate. Based on the resiliency of digital advertising through the pandemic, GroupM has updated its 2021 outlook for the global advertising market from its June forecast of 8.2 per cent to 12.3 per cent growth.
Also arriving yesterday was the latest data from IPG’s media research and intelligence division Magna that found Australia’s advertising market had declined by -6.2 per cent in 2020 to $15.7 billion dollars as GDP shrinks by -4.5 per cent due to the COVID-triggered recession. Read the full report here.
Please login with linkedin to commentWarc
As part of L’Oréal’s global corporate governance process, which sees a media review completed every four years, L’Oréal Australia and New Zealand have appointed GroupM agency Wavemaker as its new media agency from 1st October 2021. The review process was overseen by Ebiquity, an independent advisor to manage the process on behalf of L’Oréal Australia and […]
Logo designer BrandCrowd has created its own logo to align with the federal government’s ‘Arm Yourself’ vaccine campaign. Taking inspiration from the iconic World War Two image of Rosie the Riveter, the logo was created by a network of designers. According to BrandCrowd, “with the Australian government’s COVID-19 vaccination rollout under increasing scrutiny and accompanying […]
Nova 919 has announced that Jodie Oddy will officially join the station, with The Jodie Oddy Show set to kickstart Nova’s weekends. An Adelaide radio favourite and one of the most enduring and successful female media personalities in SA, Oddy joins Nova with over 13 years breakfast radio experience and is excited to be getting […]
Jacqueline Gonzales [featured image] is the Head of Global Marketing at Squarespace. In this piece, she shares her best pieces of advice for launching a campaign globally. It’s estimated that we see between 6,000 to 10,000 ads every single day. In today’s digital landscape we’re constantly bombarded by so many different brand messages from every […]