Zenith Media Projects Significant Rebound in Advertising Spend

In total overall digital advertising will grow 19 in 2021 to a 58 share of ad spend While almost all digital ad apertures are showing strong growth legacy narrowband models such as static banners are set to contract by 15 In 2021 online video advertising will be the fastest growing digital channel 26 reaching revenue of 63B Social media revenue is expected to be up 25 and will outpace spending in search for the first time By 2023 the report projects out that for the first time globally ad spend on social media will outpace ad spend on TV a milestone in the digital eraMediaVillage spoke with Zenith39s Head of Forecasting Jonathan Barnard about the impact of the Delta Variant and which insights really stood out Despite the Delta Variant spikesamp160and a return to indoor maskingamp160as well as continued lockdowns in certain global markets he is confident in the forecastsquotThe concerns were mounting of another COVID19 spike while we were finalizing the reportquot Barnard said quotHowever the report fairly reflects our current opinion There are risks on the downside but also reasons to be even more positive than the report currently reflects Our forecasts especially in comparison to our contemporaries are relatively restrained and at the lower end of expectations Delta hasn39t changed our forecast yetquotThe report provides a detailed look at advertising expenditure both in local currency and US dollars from 2009 projections through 2023 for over 80 markets providing a breakdown by medium newspaper magazine TV radio cinema outofhome and internet One of the things that stands out according to Barnard is the resiliency of the US market quotI was surprised by the strength of the advertising sector by the end of last year and how quickly parts of it had bounced backquot he saidAccording to the forecast total advertising revenue spend in the US in 2021 2716B will surpass prepandemic ad spend from 2019 2425B Globally the US will account for 46 of the 67B of new ad spend this year China will account for 11 Japan and the UK for 6 eachMuch of what is driving the strong growth in ad spend according to Barnard is new money into the arena from the SMB market The pandemic forced smallmedium local businesses to get scrappy and more savvy to keep their business afloat through the pandemic They learned how to use digital platforms which Barnard noted quotyou can see reflected in the latest financial results from companies like Alphabet GoogleYouTube Snap and FacebookquotWith movie theaters closed and lockdowns keeping workers from commuting cinema and OOH were two of the hardest hit media in 2020 Ad spend on those media types fell 72 and 28 respectively last year Both are projected to recover in 2021 with cinema projected to grow 116 and OOH 16 Barnard attributes the slower recovery of OOH in 2021 to the fact that commuting back to offices is not expected to truly begin until late in the year around October Both media types are not expected to reach prepandemic spend levels until after 2023The full study Zenith39s Advertising Expenditure Forecasts July 2021 is available for purchaseClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillagecomMyersBizNetamp160

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Zenith Media Projects Significant Rebound in Advertising Spend

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Jeff Minsky

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