OOH advt to see partial rebound with 14.9% growth in 2021, says GroupM report
By M4G Bureau - June 24, 2020
The report expects that beyond 2021, although larger brands will increase their allocations of budgets to the medium but outdoor advertising will grow slowly
Global agency, GroupM has released its June 2020 global mid-year forecast report titled ‘This Year, Next Year’, wherein the forecast projects declines in consumer and advertising spend across the board. The Covid19 pandemic has transformed the global advertising economy from a 6.2% growth rate in 2019 to a decline of 11.9%, excluding the effects of increased U.S. political advertising. This deterioration returns the industry to slightly higher than 2017 levels in terms of constant currency.
The report further explains that OOH advertising and related out-of-home media, such as cinema, accounted for $40 billion in activity during 2019, or 7% of total advertising. Of this figure, $12 billion was in digital format.
With restrictions on social activity, this medium was always set to be disproportionately impacted by the crisis, as the value proposition to marketers looking to reach consumers away from home partially evaporated for a period of time. Overall, GroupM estimates declines of 25% including digital out-of-home media. Next year should see a partial rebound with 14.9% growth.
The report expects that beyond 2021, outdoor advertising to grow by low or mid-single digits and generally lose share of total advertising, although we do expect larger brands to generally increase their allocations of budgets to the medium.
Also, the report maintains 6% media share of the OOH advertising including cinema in the overall advertising pie in the year 2021.