Global advertising revenue is forecast to break a record in 2021 as the world says good riddance to 2020.
Five quick takes from the Fact Pack:
1. WPP’s GroupM forecasts worldwide advertising revenue for media owners will jump 10.2% to a record $651 billion in 2021 after falling 4.1% in 2020 amid the coronavirus pandemic.
2. Publicis Groupe’s Zenith expects U.S. ad spending to rise 3.2% to $237 billion in 2021 following a 5.4% drop in 2020.
3. Digital is driving the advertising rebound. GroupM predicts worldwide ad revenue for digital pure plays—Facebook, Google and other digital media companies—will surge 14.1% to $397 billion in 2021, giving digital ventures 61% of global ad revenue. Zenith expects U.S. internet ad spending to grow 9.6% to $136 billion in 2021, with the internet capturing 58% of U.S. advertising.
4. The U.S. unemployment rate (6.7% in November) has fallen sharply from its pandemic peak of 14.7% in April 2020, which was the highest level since 1939. At the start of the recession in February 2020, the unemployment rate was 3.5%, the lowest level since 1969. Employment at U.S. internet media ventures (292,700 in October) has grown during the pandemic and is now double the level of 2013, according to figures from the Bureau of Labor Statistics. However, ad agency staffing (194,200 in October) is near its lowest point since 2015.
5. Around the world, 114 marketers have global ad spending greater than $1 billion; 47 marketers have U.S. spending above $1 billion. World’s biggest advertiser? Amazon ($11 billion in 2019 ad and promotion spending). Nation’s biggest advertiser? Amazon ($6.9 billion in 2019 estimated U.S. ad and promotion spending). Nation’s most-advertised brand based on 2019 estimated measured-media spending? Berkshire Hathaway’s Geico—followed closely by Amazon.