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After months of scrambling to pull back, revise, delay and cancel ad campaigns because of the Covid-19 pandemic, marketers now can put a number to the impact on their industry.
The global ad industry is projected to see a 10% drop in spending this year, ending nearly a decade of growth—and abruptly ending a years-long run of massive, double-digit expansion for digital advertising.
These changes are reflected in GroupM’s annual mid-year forecast report, which details how various markets, industries and mediums will be impacted this year.
While its predictions for 2020 are grim, GroupM finds cautious optimism in the fact that the ad industry’s fate could actually have been worse, given the extent of the pandemic’s impact. The agency’s forecasts for next year also show that growth may return at a fast clip. For instance, the report points out that, in some markets, “pent-up demand is expected to overcompensate for 2020’s losses.”
Here are some of the big takeaways:
Global ad spending will decline 9.9% this year, GroupM projects. What’s keeping the drop from being worse? The U.S. presidential election, which will inject enough money into advertising to lift what would otherwise be a projected 11.8% decrease. But GroupM also says that, considering the pandemic’s scope, the impact is surprising. “While severe to be sure, 2020’s decline can still be considered ‘modest’ given the scale of the impact of the pandemic on global GDP, which will fall by much more
Read more here: https://www.adweek.com/agencies/ad-spending-is-expected-to-drop-10-this-year-heres-why-it-could-have-been-worse/