The UK Advertising Market Expected to Score the Second Highest Growth Rate In 2021 in Q1 2021.
According to predictions by Dentsu, ad-spend in the UK could score the second-highest growth rate worldwide in 2021. The agency expects to see the UK ad market recovering at full speed, with a more than 10 per cent year-on-year growth by the end of 2021, surpassed only by India, with 10.8% growth, and followed by France, Canada and Italy with growth rates in the 8-6% range. Many companies are turning to a Sky Adsmart agency to put them at the forefront of their target audiences.
The US will still score the largest share of the global ad spend, namely 37.9%, followed by China with 17.6%, Japan with 9.9% and the UK with only 5.1% share.
Advertising Challenges Ahead
Advertisers will need to put up with a huge challenge next year; they will need to understand and predict which of the new consumer behaviours will disappear and which ones will be here to stay for a long while. Apparently, most of the biggest brands trust that social media, video and search will be the channels that will shape the digital growth in the advertising industry, even though they can’t come up with any accurate predictions for the next six months.
The biggest advertising agencies aren’t extremely optimistic in regard to the growth of the global ad market in 2021. By the end of 2020, Forbes gathered predictions from three of the top ad agencies worldwide, Magna, Zenith and Group M, in order to draw some general trends for the global ad market in 2021.
Apparently, all three ad agencies agree that digital advertising spending will score the most significant growth by comparison with traditional ad media. Cinema advertising is probably going to see a revival as vaccinations and lift restrictions will help life return to its normal track. Also, sports advertising is expected to see a revival, thanks to the Tokyo Olympics that will take place this year.
Magna’s forecast is that the global ad spend will rise to reach over $600 billion, accounting for a 7.6% growth. They expect digital media to grow by 10.4% and traditional media by some 3.5%. Also, this agency predicts that India will take over, with a year-on-year growth of almost 27%.
According to Zenith, the global ad spend value will reach $634 billion by 2021 and then another 5.2% growth in 2022 to exceed $650 billion. The US ad spending has only seen a 3.3% growth over the past year, much lower than Latin America or the Middle East / North Africa.
The most optimistic forecast for the ad market in 2021 belongs to Group M, the agency that forecast just over $650 billion for 2021. They also predicted that Latin America will record the largest growth (24.4%) followed by APAC (a bit over $14%). Their estimations show a total rise of digital media to almost $397 billion, which is higher than the estimations from Magna.
The 2021 Projections for UK Ad Spending Revised Down
According to the latest Advertising Association/WARC Expenditure Report, ad spend recovery in the UK could occur at a slower pace than initially estimated. The association revised their previous 16.6% estimate down to a more realistic and not so optimistic 14.4%.
Overall ad spend for 2020 has been lower than the 2019 figure. Fortunately, festive advertising by the end of the year has contributed to a slight improvement of the situation. Nevertheless, the overall fall in ad spend in 2020 compared to 2019 is still in the range of 10%, which accounts for many billions in losses across the advertising industry. The COVID-19 crisis has indeed changed the world in so many ways.