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%
SHARE
THIS



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

How Pinterest Helps Brands Tap Into Inclusivity & Representation 
  • Media
  • Partner Content

How Pinterest Helps Brands Tap Into Inclusivity & Representation 

At the heart of Pinterest is the mission to provide inspiration to create a life people love. However, it’s near impossible to be inspired when you don’t feel represented, seen or heard.  That’s why consumers are turning to Pinterest in droves to be inspired by a platform that is consistently representing who they are. For […]

by B&T Magazine

B&T Magazine
Confronting PSA Campaign For UN Women Exposes Gender-Based Via MullenLowe New York
  • Campaigns

Confronting PSA Campaign For UN Women Exposes Gender-Based Via MullenLowe New York

MullenLowe New York and Mediahub have launched an exposé on legal gaps, one of the key prevention measures needed to end violence against women and girls around the world in a public service campaign for UN Women. As violence has increased against women during the COVID-19 pandemic, and an additional 15 million women are expected to be affected […]

CarAdvice / Drive Welcomes New Presenter Charlie Bullis
  • Media

CarAdvice / Drive Welcomes New Presenter Charlie Bullis

CarAdvice / Drive has welcomed motor sport presenter and journalist Charlie Bullis to its editorial team. Adding to its ever-expanding content team, Charlie brings a passion for all things performance and racing having previously contributed to SpeedCafé, MotorSportM8 and the TA2 Muscle Car Series. CarAdvice Managing Editor, Trent Nikolic said: “We are very excited to […]

QMS Launches QUBE To Unlock Digital Outdoor Creative
  • Advertising

QMS Launches QUBE To Unlock Digital Outdoor Creative

With the growth and demand of Digital Out-of-Home (DOOH) continuing to rise, QMS has launched an in-house creative services division QUBE. Designed to facilitate greater collaboration with advertisers and agencies, QUBE can help unlock the more engaging dynamic creative capabilities DOOH has to offer, in an effort to deliver more memorable campaigns for clients. Combining […]

A Retail Marketer’s Unlikely Secret Weapon: Diversified Delivery Options This Peak Sales Season
  • Opinion

A Retail Marketer’s Unlikely Secret Weapon: Diversified Delivery Options This Peak Sales Season

In this piece, Doddle APAC CEO Justin Dery explains why retail marketers should look beyond traditional delivery options this Christmas. 2020 has been a year like no other, and marketers across the world, regardless of industry, have been forced to rethink brand interaction, upweighting digital and tracking rapidly evolving consumer behaviour. This year’s sales season […]

Opinion

by B&T Magazine

B&T Magazine
Sydney WorldPride Appoints Adam Zammit As Director, Partnership & Revenue
  • Marketing

Sydney WorldPride Appoints Adam Zammit As Director, Partnership & Revenue

Following an extensive search, Sydney WorldPride today announced the appointment of Adam Zammit to the newly created role of Director, Partnership & Revenue. WorldPride – an international festival celebrating LGBTIQ+ culture and joy – will be held for the first time in the Southern Hemisphere, when the festival comes to Sydney in 2023. Zammit’s key […]

Nickelodeon, Michael Phelps Team-Up For PAW Patrol Water Safety Campaign
  • Campaigns

Nickelodeon, Michael Phelps Team-Up For PAW Patrol Water Safety Campaign

PAW Patrol’s heroic pups are on a roll this summer and ready to spread the word about the importance of water safety, through the PAW Patrol Safety First! prosocial initiative. The water safety program, created in partnership with world champion swimmer and water safety advocate Michael Phelps, launches today with a public service announcement. Starring […]

The Core Agency Brands Just Better Care As ‘Just Better…’
  • Media

The Core Agency Brands Just Better Care As ‘Just Better…’

Independent creative agency, The Core Agency, has created a new campaign for national in-home aged care and disability support provider, Just Better Care. Just Better Care is one of Australia’s largest accredited providers, delivering in-home social and lifestyle support services that enable people to live independently.Its network of over 40 franchise territories provides affordable and […]

P.E Nation & Andpeople Rewrite Fashion Rules With Custom-Built Augmented Reality Changing Room
  • Campaigns

P.E Nation & Andpeople Rewrite Fashion Rules With Custom-Built Augmented Reality Changing Room

Creative agency Andpeople has teamed up with active-streetwear label P.E Nation to create a custom-built augmented reality (AR) dressing room ahead of the label’s latest launch. The digital dressing room was unveiled to coincide with the launch of P.E Nation’s ‘Sustainable in Snow’ collection. In partnership with Andpeople and the globally recognised team behind the […]

Snap Launches New Product Suite For App Advertisers
  • Advertising
  • Technology

Snap Launches New Product Suite For App Advertisers

From Airbnb to Calm and all the apps in between, the rise of app-based companies calls for specific app advertising solutions, according to Snap Inc. Following the launch of Snap Connect—a tool to help marketers learn about direct response (DR) advertising strategies on Snapchat—Snap has launched an advertising product suite built specifically for app marketers. […]