By: M4G Bureau
Last updated : June 18, 2020 9:57 am
The report predicts 35% decline in 2020 and 23% rate of growth in 2021
Advertising Forecast:
However, the report said that positive news is also visible on the horizon as the U.K. advertising market is starting to stabilise after an initial freefall that began in late March. Following seven years of mid-to-high single digit growth, as of early June, GroupM estimates that the advertising market will decline by 13% this year, followed by 13% growth next year.
For reference, the 2009 global financial crisis produced a 12% decline. Considering that economic growth will be significantly worse in 2020 relative to what was observed in 2009, the fact that the outcome for advertising in 2020 is only slightly worse is potentially surprising, the report added.
OOH Advertising:
According to the report the Out-of-Home advertising is set to suffer more than most media during 2020, with a 35% decline expected this year and a 23% rate of growth expected for next year. New demand for outdoor advertising essentially stopped during the worst of the pandemic, generally only leaving media owners with the limited revenue that was associated with longer-term budget commitments and long-term advertising placements.
The assumption of consumers that there won’t be a vaccine for the treatment of Covid19 prior to mid-next year means consumers will not resume normal out-of-home behaviours until that time. This will delay a rebound for outdoor advertising until the second half of 2021, with gradual rebound aiding 2022 growth figures as well.
Increasing use of digital inventory and the flexibility that follows from digitization, including programmatic trading tactics, will further help to support favourable ongoing trends.