According to the last global forecast of GroupM: “This year-Next year”, in 2021 advertising revenues are estimated to grow by 19% globally, a trend that will continue into the future.
Although the pandemic dealt a major blow to the global economy, from some points of view it was a factor in the acceleration of a development that had already been predicted beforehand. As far as advertising is concerned, in fact, the pandemic has contributed to an estimated 19% growth globally through 2021. This trend is expected to continue in the future as advertising revenues have increased by 15% since 2019.
We can also make further estimates on the advertising sector in the coming years. It is estimated that in 2026 the advertising sector will grow to reach USD 1 trillion, exceeding the USD 664 billion of 2020 and the USD 522 billion of 2016. For the record, it is worth noting that this growth is also due to the increased concentration within the industry in recent years; compared to 2016 when the top 25 media companies invoiced 42% of advertising revenue, in 2020 the same companies will invoice 67% of total revenue.
It is also worth mentioning the changes that are taking place in the home entertainment advertising sector. Private TV networks are focusing their investments on streaming services, which as we know represent the future and the new normal. We are therefore seeing a growth in Connected TV+ advertising, despite a slow growth in total TV advertising
Besides the general advertising sector there is more, here are some noteworthy areas:
Audio advertising: Despite the 27% drop in 2020, an increase of 18% is estimated for 2021, which should contribute to the improvement of this area, although not as much as in 2019.
OOH (Out Of Home media advertising): Growth estimates for this area are 19% in 2021 but should improve further in 2022. There is continued interest in this area, helped by new digital formats that are increasing the demand.
For further information please visit GroupM.
