Even as the world continues to battle the pandemic, the advertising industry saw a faster-than-expected growth rate in 2021, buoyed by the US, UK and China, and prompted GroupM to revise upwards its advertising growth forecast for 2021.
According to GroupM’s “This Year, Next Year” global year-end forecast, the global advertising industry growth rate in 2021 is now pegged at 22.5% (excluding US political advertising), higher than its June forecast of 19.2%. . The higher growth rate was fueled by higher spending on national digital ad campaigns by new small businesses, in addition to an aggressive focus on growing advertising revenue from apps or “endemic” businesses. digital”. In 2022, Group M expects the global advertising industry to grow by 9.7% compared to its June forecast of 8.8%. Thus, markets such as the United States, France, Germany and Australia are expected to experience annual growth of around 4 to 5% over the next five years. India, the UK, Brazil, Canada, China and Japan are expected to grow by 6-8% per year over the next five years, the report says.
With online shopping being a buzzword in these pandemic times, digital advertising will end 2021 with a growth rate of 30.5% (vs. 26% forecast in June). Digital advertising now accounts for the lion’s share at 64.4% in 2021 and it’s no surprise that Alphabet, Meta and Amazon account for 80-90% of that global total.