OOH set to become 2nd fastest growing medium in 2021, says WARC Global report
By M4G Bureau - December 02, 2020
Highlighting the aftermath of the pandemic, the report states that the Global ad market will take years to recover from COVID-19
A new report, the WARC Global Advertising Trends: State of The Industry 2020/21, has come out with some projections for the global advertising business. According to the WARC Data, the Global advertising spend is expected to fall by 10.2% in 2020, as traditional media have had their worst year on record.
The report says that it will take at least two years for the global ad market to fully recover. According to it, a 6.7% rise in 2021 will only recoup 59% of 2020’s losses; and the market would need to grow by 4.4% in 2022 to match 2019’s peak of $620.6bn.
“2020 was the most hostile year for the advertising economy ever seen in our 40 years of market monitoring,” says James McDonald, Head of Data Content, WARC, and author of the research. “Some platforms – such as e-commerce and social properties – have emerged relatively unscathed, but the vast majority of the media landscape has witnessed a severe material impact,“ he adds.
“An immediate bounce back is not on the horizon,” he further adds. “Rising unemployment is set to depress consumption demand well into next year, and though the prospect of a vaccination programme offers cause for optimism among consumers and businesses, it may only be a waypoint in a recovery that stretches years.”
The out of home medium is down 27.3% ($11.3bn) but OOH is forecast to be the second-fastest growing medium in 2021, with ad spend rising by a fifth (20.2%), though a total of $36.3bn will be 12.7% lower than in 2019. Cinema is down by almost a half in 2020, but will lead 2021 growth with a 41.2% rise.
The report highlights the growth of Asia-Pacific market, which is down 9.7% ($18.8bn) to $174.4bn, and set to rise 8.5% in 2021 with China growing 7.7%, Japan 10.2%, Australia 13.2% and India 14.2%.