Zenith forecasts 16% growth for OOH & 65% growth for cinema by 2022
By M4G Bureau - July 29, 2020
Out-of-home and cinema growth will be stronger as they compensate for much greater declines this year, states report
According to recently released Zenith’s Advertising Expenditure Forecasts, global advertising expenditure to shrink 9.1% this year because the advertisers have sharply pulled back spending when the scale of the coronavirus crisis became clear while Asia Pacific is forecasted to drop by 8% as some of the markets have managed to keep the virus under control.
The steepest decline took place between March and May. But now it has started to ease and is expected to gradually moderate. Zenith forecasts a 5.8% recovery in global ad spend in 2021, boosted by the re-scheduled Summer Olympics and UEFA Euro 2020 football championship.
The report said that out-of-home and cinema have suffered the most from government restrictions on movement and consumers’ avoidance of public places. OOH advertising is forecasted to drop by 25% in 2020 and cinema by 51%.
However, both outdoor and cinema growth will be stronger as they compensate for much greater declines this year. Zenith has forecasted 16% growth for out-of-home and 65% growth for cinema but neither will return to 2019 peaks by 2022, the report added.
“The coronavirus forced brands to embrace digital advertising even faster than expected and made digital transformation of businesses more urgent than ever,” said Jonathan Barnard, Zenith’s Head of Forecasting. “This year will be the first in which digital advertising will attract more than half of total global ad-spend, a milestone we previously expected in 2021.”