January 8, 2020

Slower ad growth

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According to GroupM (), the US advertising market will grow at estimated rate 4% in 2020. This is slower than projected 6.2% growth to $244 billion in 2019. Ad spending forecast for 2021 is even lower, I.e. 3%. Most ad channels are expected to keep decreasing in 2020 (TV -0.9% vs -2%, newspapers -14.6% vs -15%, magazines -10.9% vs -10%, direct mail -7% vs 0%, and directories -20% vs 21.9%, 2020 vs 2019 accord...ingly). The growth will be shown by pure-play Internet (12.8% vs 19.9%), out-of-home (5.5% vs 8%) and radio (0.2% vs 2%). Spending growth rate will be 13.5% in 2020 compared to 25% in 2019 (excl. search ads). Search ads growth rate will slow too but not so drastically (12.1% vs 15%). Increased spending on digital advertising will be based on the growth shown by top companies Facebook, Amazon, Netflix, Alphabet, eBay, IAC, Uber and  which were responsible on around $30 billion of ad spending in 2019. Their spending was $26 billion in 2018 and major part of this amount was in the US. GroupM projected that over next few years the rapid growth of these companies would slow, so their ad spending would decrease too. Also GroupM has expect that political advertising in the US would reach about $10 billion in 2020. Total media growth rate including political ads will be 7.1% (compared to 4% without political ads ).

https://digiday.com/marketing/groupm-sees-slower-ad-growth-2020/

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