The latest report by WARC looks at how badly the ad market has been hit this year and how long it'll take to recover.
Exactly three weeks left for 2020 to come to an end. The effects of the pandemic have been plentiful for a variety of industries. For the advertising industry, 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. Global marketing intelligence service, WARC highlights the state of the industry in their latest report along with forecasts on what ad spending will look like in 2021.
The global ad market is set to fall by 10.2%- $63.4bn- in 2020
The global ad market is now on course to contract by 11%(- $68.3bn)- to $552.3bn in 2020. This is worse than the 2009 recession when advertising investment fell by $61.3bn (-12.9%) worldwide. The report predicts that global ad spend is set to rise by 6.7% next year, which means only 59% of 2020's losses will be recouped. Ad investment would need to grow by 4.5% in 2022 to top the peak recorded in 2019.
Sharp cuts to ad budgets have been seen across the board
WARC’s Global Marketing Index (GMI), recorded a mild recovery in October after a prolonged period of the worst results in its history. Already in modest decline since mid-2019, marketing budgets recorded sharp and sustained cuts across all regions from March of this year – in line with the spread of the virus. Data shows that offline media was adversely affected by the downturn – partly for practical reasons – though online formats also recorded losses.
Developing markets have been hit hardest by the downturn