Report: Global Ad Spends To Decline By 4.9% Amid Google & Facebook Slowdown Of 6% & 10%

Report: Global Ad Spends To Decline By 4.9% Amid Google & Facebook Slowdown Of 6% & 10%

According to the research data analyzed and published by StockApps.com, global ad spending could drop by 4.9 per cent to $US614.73 billion in 2020. Comparatively, 2019 saw an increase of 6.3 per cent and eMarketer.com’s pre-pandemic forecast was a seven per cent growth rate for 2020. You can read the full research here.

Moreover, a World Advertising Research Center (WARC) report echoed similar sentiments, predicting a higher decline of 8.1 per cent and a drop to $US563 billion.

Alphabet to Lose $US12.9B, Facebook $US5.3B in Ad Revenue in 2020

However, based on a Zenith study, ad markets will recover in 2021, enjoying a 5.8 per cent growth rate. It cites the fact that the postponed UEFA championship and Tokyo Summer Olympics will both be taking place in 2021. Moreover, as eMarketer points out, as overall ad spend drops, digital ad spend will increase by 2.4 per cent.

Tech giants Alphabet and Facebook are among those stung by the effects of ad revenue drops. Google suffered its first-ever quarterly decline in year-on-year (YoY) revenue, while Facebook had its slowest revenue growth since its 2012 IPO. Alphabet reported a two per cent revenue drop overall and a net income decline of 43 per cent.

YouTube advertising only grew six per cent and total Google ad revenue by dropped 8.4 per cent. “Search & Other” revenue also declined by 9.8 per cent during the quarter. Facebook, on the other hand, reported a mere 10 per cent increase in ad revenue during the quarter.

Though other operations reported a 40 per cent increase in revenue, the total revenue increase was only 11 per cent.

According to WARC, Alphabet could lose up to $US12.9 billion in ad revenue in 2020, while Facebook can lose $US5.3 billion.

The discrepancy between the two could have to do with differences in their advertising models. According to another eMarketer research, 11 per cent of Google’s 2019 ad revenue came from the travel industry. Facebook’s revenue is, however, tied to gaming and eCommerce.




Please login with linkedin to comment

Facebook Google

Latest News

Marc Collister: AI & Automation Set To Revolutionise Creativity In 2024
  • Opinion

Marc Collister: AI & Automation Set To Revolutionise Creativity In 2024

Marc Collister (pictured) of P2 Content Creators spills the beans on his 2024 predictions drawing from two decades of experience in the advertising, film and television industry. I’m certain it will come as no surprise that in 2024, we can expect our industry to move at breakneck speed again. With even more rapid shifts in […]

Opinion

by B&T Magazine

B&T Magazine
Reddit Recap Reveals That Aussies Went Nuts For The Tillies, Eurovision And, Erm, Finance
  • Technology

Reddit Recap Reveals That Aussies Went Nuts For The Tillies, Eurovision And, Erm, Finance

Reddit’s annual Recap report has revealed the issues and moments that captured Australia’s collective mind over 2023 with, naturally, the Matildas featuring high on the list. The inaugural Australia-hosted Women’s World Cup saw Aussies glued to the footy (or, indeed soccer) with one enterprising user capturing the moment that Cortnee Vine scored the winner against […]

Zeno Group Australia Bolsters Client Offerings With An Expanded Creative Services Portfolio & New Senior Leader
  • Marketing

Zeno Group Australia Bolsters Client Offerings With An Expanded Creative Services Portfolio & New Senior Leader

Zeno Australia has announced expanded creative design capabilities and the appointment of Jim Michell (lead image) to its senior leadership team. The new moves support strong growth in the region. Zeno Australia’s clients, including Abano Healthcare, Motorola and Yorkshire Tea, can now tap into a suite of creative design services to augment the agency’s work […]

Spikes Asia Announces Its 2024 Jury Line-Up
  • Marketing

Spikes Asia Announces Its 2024 Jury Line-Up

Spikes Asia, APAC’s most prestigious and sought-after Award for creativity and marketing effectiveness, has revealed its 2024 Jury line-up today. The 93 industry experts from across 18 markets represent APAC’s leading talent from a diverse range of disciplines. 2024 sees the highest representation from brands, including Budweiser, Procter & Gamble, Unilever and, for the first […]

Assembled Media Inks TikTok Creator Campaign for BIC
  • Campaigns

Assembled Media Inks TikTok Creator Campaign for BIC

Assembled Media, is drawing upon the creative power of TikTok Creator Marketplace to help generate unique, impactful content for iconic stationery brand, BIC. The social activation campaign titled ‘A Pen for Every Side of You’ promotes the flexibility of BIC’s 4 Colours pen and is active nationwide on the BIC Stationery TikTok account. The campaign […]

Big data and analytics visualization technology with scientist analyzing information structure on screen with machine learning to extract predictions for business, finance, internet of things
  • Media

IAB Launches Fourth Module In Its Marketing Measurement Innovation Series

IAB Australia has launched ‘Evolution in Market Mix Modelling’, the fourth module in its Marketing Measurement Innovation Series, which has been developed by IAB Australia’s Ad Effectiveness Council. The module explores what is driving the increased use of MMM and how the technique is evolving with advances in computing power and machine learning to provide […]

Aerial view of a coal fired power station with large cooling towers emitting co2 into the atmosphere. With its lights already turned on the power station is illuminated in moody twilight.
  • Media

Scope3 Expands Carbon Measurement Capabilities To Include DOOH Advertising

Scope3, the collaborative sustainability platform leading the decarbonisation of media and advertising,  announced the addition of digital out-of-home (DOOH) to its emissions measurement. With DOOH ad spending predicted to grow from $17B in 2023 to nearly $24B by 2028, measuring this channel brings us one step closer to understanding the total impact of digital advertising […]

January 14, 2023 - New York, New York, USA: 2023 NRF Big Show press conference with Composition 2024 NRF Singapore.    Photo by Ian Wagreich / © Ian Wagreich Photography
  • Marketing

Now Open For Registration – NRF 2024: Retail’s Big Show Asia Pacific

NRF 2024: Retail’s Big Show Asia Pacific, is now open for online registrations for the main conference. Jointly organized by the National Retail Federation and Comexposium, Retail’s Big Show Asia Pacific will take place from 11 – 13 June, 2024 at the Sands Expo and Convention Centre in Singapore and is expected to draw thousands […]

DBC2 Appoints Jason Fisher To Newly Created Role Of CEO
  • Marketing

DBC2 Appoints Jason Fisher To Newly Created Role Of CEO

Following a period of significant client growth, leading auto marketing agency, DBC2 has appointed Jason Fisher (lead image) to the newly created role of CEO. The appointment is part of DBC2’s long term growth strategy ahead of the agency announcing a brand refresh and expanded proposition in early-2024. As a new shareholder of the business, […]

Three New Hires At Amplify
  • Marketing

Three New Hires At Amplify

Extra pressure on Amplify's Nescafé Blend 43 catering tin today with the arrival of three new recruits.

Boomtown’s Final Masterclass Of 2023 Attended By Almost 100 Media Reps
  • Media

Boomtown’s Final Masterclass Of 2023 Attended By Almost 100 Media Reps

Don’t treat regional media as a charity, but a real growth opportunity: That’s the message from Boomtown’s final masterclass of 2023, attended by almost 100 media industry representatives from across the nation. The masterclass was part of a series of educational sessions, delivered by Boomtown, the media collective championing advertising in regional Australia. The sessions […]