Global advertising growth for the year is far exceeding previous expectations, states GroupM's 'This Year Next Year' report.
According to the report, the ad industry is expected to grow by 19% in 2021, to reach a number 15% higher than 2019. GroupM is now expecting global advertising to exceed US$1 trillion in 2026, up from $641 billion in 2020 and $522 billion in 2016.
India should be achieving more than 20% growth in advertising revenue along with the UK, Brazil and China, according to the report.
GroupM has attributed the growth to:
Faster than expected expansions of app ecosystems
Rapid small business formation activities
The growing role of cross-border media marketplaces
Growth by medium
Digital advertising is expected to grow at 26%, versus the 15% projection made by GroupM in December 2020.
Television is now expected to grow by 9.3% in 2021, an improvement from the 7.8% expectation. Beyond 2021, GroupM expects low single-digit growth for the medium (including Connected TV+).
Audio advertising growth is forecast at 18% now. The projection in December was 8.7%. However, following 2020’s 27% decline, the numbers fall short of the 2019 revenue.
OOH advertising will grow by 19% in 2021. Longer-term, OOH is benefitting from growing interest in the medium and is aided by new digital formats that allow for incremental sources of demand to emerge, states the report.