Global advertising spend is on the rise, with figures showing a 3.9% increase to reach a total of $665 billion in 2020, according to the latest data from research firm WARC. This growth is being driven by strong performances in markets such as China, India, and the US, with digital advertising leading the way as the fastest-growing media channel. In fact, digital ad spend is expected to account for over half (52%) of global ad spend this year, surpassing TV for the first time.
The Covid-19 pandemic has accelerated the shift to digital advertising, with brands increasingly turning to online platforms to reach consumers as they spend more time at home. Social media platforms, in particular, have seen a surge in ad spend, with Facebook, Instagram, and YouTube all benefitting from the increased demand for digital content. E-commerce has also seen a boost in ad spend as more people shop online, with Amazon and Alibaba leading the way in this space.
Despite the overall increase in global ad spend, the outlook for traditional media channels such as print and radio remains challenging as advertisers continue to shift their budgets towards digital platforms. Print ad spend is expected to decline by 27.9% this year, while radio ad spend is forecast to fall by 11.2%. However, outdoor advertising is expected to see a slight recovery in 2021, with ad spend set to increase by 1.2% following a difficult year in 2020.
Looking ahead, WARC predicts that global ad spend will continue to grow in 2021, with a forecasted increase of 6.7% to reach a total of $710 billion. The recovery will be driven by strong performances in key markets such as China, the US, and India, as well as increased investment in digital advertising. Mobile ad spend is expected to be a key growth driver, with a forecasted increase of 19.0% this year, while desktop ad spend is set to decline by 4.1%.
Overall, the outlook for the advertising industry is positive, with digital advertising leading the way in terms of growth and innovation. As consumers spend more time online, brands are increasingly turning to digital platforms to reach their target audiences, driving growth in the digital ad spend market. While traditional media channels face challenges, there are still opportunities for growth, particularly in areas such as outdoor advertising.
In conclusion, the global advertising industry is on a positive trajectory, with ad spend expected to increase in 2021 driven by strong performances in key markets and increased investment in digital advertising. Brands are adapting to the changing consumer landscape by shifting their budgets towards online platforms, with digital advertising surpassing TV for the first time. While traditional media channels face challenges, there are still opportunities for growth, particularly in outdoor advertising. The shift to digital advertising is set to continue, with mobile ad spend expected to be a key driver of growth in the coming years. As the industry evolves, brands will need to stay ahead of the curve and embrace new technologies and platforms to reach consumers in an increasingly digital world.
