Ad Spending To Rebound Faster Than Previously Forecast

After a reversal last year, global ad spending is forecast to snap back from the pandemic even faster than previously predicted, GroupM said in its latest forecast.

The Wall Street Journal reports worldwide advertising revenue will jump 19% to $749 billion in 2021, excluding U.S. political advertising, said GroupM, which houses the media-buying agencies and data operations of ad giant WPP PLC. In December, the company had predicted a 12% increase for this year. Last year, global ad spending slipped 3.5% to $628 billion.

For 2021, however, revenue will grow 24% in the U.K. and Brazil, 23% in China and 17% in the U.S., including political advertising.

In a separate report last week that focused exclusively on the U.S., GroupM said ad spending will grow 22% this year, excluding political advertising. That figure included direct mail and directories that were removed from calculations in the global forecast.

GroupM chalked up much of the expected growth this year to the acceleration of digital advertising, which will shoot forward 26% this year, the company estimated, a pace up sharply from its December forecast of 15%.

Since late last year, advertisers have been ratcheting up their spending at digital media companies to reach consumers who are growing used to shopping and devouring content and TV online.

The connected TV category will also benefit from the changing consumption habits, GroupM said in its report. Global ad spending in connected TV is on track to grow 25% to $16 billion this year, and will reach $31 billion globally by 2026, according to the report. The company defines connected TV ads as those delivered to a TV through an internet connection, including video-on-demand and delivery to other devices, and excludes the category from its digital advertising figures.