Brands to increase digital advertising spend in 2021
The year 2020 will be regarded as a blip by many, but not by the media industry. Despite the grim realities of a global economy that will be the worst since the Great Depression, advertising weathered the storm relatively well and will end up at declining by “only” 5.8 percent on an underlying basis according to GroupM, WPP’s media buying agency.
In its This Year Next Year: Global End of Year Forecast the media powerhouse says the nature of the downturn and new consumer behaviours forced businesses to rapidly adapt to e-commerce models, and digital advertising benefitted.
Looking at the US and UK, part of the world’s largest markets which include China, Japan, Germany, France, South Korea and Canada, GroupM expect growth in of 11.8 percent in the US and 12.4 percent in the UK in 2021.
A key takeaway from the report show digital advertising for pure-play media owners like Amazon, Facebook, Google, etc., should be 61 percent of advertising in 2021. This share has doubled since 2015 when it was only 30.6 percent. By 2024, GroupM estimates digital advertising will have a 66 percent share globally.
Television advertising will decline by 15.1 percent this year before rebounding to grow 7.8 percent next year. Digital extensions and related media, including advertising associated with traditional media owners’ streaming activities (primarily on connected environments), will grow 7.8 percent this year and 23.2 percent next year.
Print advertising no longer a priority for brands
Print advertising, including newspapers and magazines, is expected to decline 5 percent for the year, a significant acceleration over the high-single-digit declines of recent years. However, those single-digital declines should resume following an economic recovery, says the report.
Accordign to the McKinsey and BoF State of Fashion 2021 In Search of Promise in Perilous Times report, Digital adoption soardamid the pandemicand will continue to do so. Brnds embraced livestreaming, cirtual customer service and social shopping. Fashion players must optimise the online experience and chennl mix while persuasively integrating the human touch.
Image via Pexels; Article source: GroupM, McKinsey State of Fashion 2021