Media firm GroupM recently released its forecast for media ads in 2021, expecting a 22% growth in 2021 from 2019’s numbers, not including political spending as it is not a significant enough factor in 2019 and 2021.
Ad expenditure is expected to go up by 15% from 2019 to 2021, which is a considerable shift up from the company’s last forecast.
Digital advertising is the key factor according to GroupM’s mid-year report. The sector’s expected to grow by 33% in 2021, up from 2020’s 10% growth. Should things hold out, digital will account for 57% of all the advertising in the US by the end of 2021, and 69% by the time 2026 rolls around.
National TV is making a comeback, with GroupM forecasting that the sector, which also covers TV ads, is set to grow by 8.7%, which is a big recovery from the 6.9% drop recorded by the sector in 2020.
These growth rates amount to a total of 7.4% compounded annual growth rate (CAGR) through 2026. 2020 saw US advertising drop by a whole 5.6%, the biggest drop since 2009’s financial crisis, due to the coronavirus pandemic affecting industries across the world. GroupM admitted to having to revise its forecasts as a result of 2020’s events.
GroupM wrote that it was clear that the ad market was doing well during the first quarter of 2021, and that the inflation happening across the US would boost its recovery. However, they underestimated how rapid the recovery was, which only changed when they saw all those good king kong advertising reviews along with the results from Google, Facebook, and others.