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BizReport : Advertising : December 02, 2020

Forecast: 2020 ad declines to rebound in 2021

For the first time in a decade, global media spending fell in 2020. Total global media spending is expected to be down nearly 7% YoY, reaching about $1.2 trillion for the year. Much of the decline is blamed on the Coronavirus pandemic that has been sweeping the globe, keeping many businesses shuttered and consumers from spending money. However, with vaccine potential getting buzz, some experts believe media spending will rebound in the New Year.

by Kristina Knight

PQ Media has released their global media spending report, and among the more interesting findings is this: a rebound is ahead for media spending, pushed in many cases by video, podcasts, gaming, and influencer campaigns. This after 2020 saw global media spending decline nearly 7%, and media spending falling 7.1% in the US.

"While the economic damage wrought by the pandemic will squelch a decade-long expansion of the media economy this year, the emergence of new advertising and marketing opportunities in streaming video and audio; mobile gaming and apps; social media and influencer marketing; and digital product placement, content marketing and virtual events are expected to hasten the industry's recovery going forward," said PQ Media CEO Patrick Quinn.

According to the PQ Media Global Advertising & Marketing Spending Forecast 2020-2024:
▪ The Global Ad Sector will decrease 7% to only $583 billion for 2020
▪ The Global Marketing Sector will decrease 6.6% to reach only $694 billion for 2020
▪ Global media spending will increase 5.9% in 2021
▪ Digital/alternative media spending will lead the way with an 11% increase in 2021

Moving forward from 2020, Quinn believes brands must embrace how consumers are spending their online time post-pandemic.

"Brands utilizing digital branded media are capitalizing on the increased time these key demographics are spending on mobile, social, online, and streaming media by using influencers, videos, podcasts and interactive game experiences," Quinn said.

Tags: 2021 advertising forecast, advertising, advertising campaign, advertising forecast, advertising trends, ecommerce, PQ Media

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