{"id":31653,"date":"2020-07-08T13:16:43","date_gmt":"2020-07-08T12:16:43","guid":{"rendered":"https:\/\/mediamakersmeet.com\/?p=31653"},"modified":"2020-07-09T10:36:46","modified_gmt":"2020-07-09T09:36:46","slug":"robust-growth-to-resume-in-2021-global-digital-ad-spending-to-bounce-back-reports-emarketer","status":"publish","type":"post","link":"https:\/\/mediamakersmeet.com\/robust-growth-to-resume-in-2021-global-digital-ad-spending-to-bounce-back-reports-emarketer\/","title":{"rendered":"\u201cRobust growth to resume in 2021\u201d: Global digital ad spending to bounce back, reports eMarketer"},"content":{"rendered":"\n\n\n

Just yesterday we reported the findings of Gartner\u2019s Annual CMO Spend Survey Research 2020 where 73% of CMOs dismissed economic pessimism<\/a>, expressing confidence that COVID-19\u2019s negative impacts will be short-lived.<\/p>\n\n\n\n

Despite a dramatic deceleration caused by the coronavirus pandemic driving down ad spend globally, there are now significant signs of recovery.<\/p>\n\n\n\n

V-shaped economic curve<\/h4>\n\n\n\n

The majority of CMOs believe the post-COVID-19 economic curve will be V-shaped, with a staggering 95% consensus on a positive outcome<\/a>, either expecting a return to business-as-usual in the next 18 to 24 months, or a significant positive impact going forward.<\/p>\n\n\n\n

eMarketer\u2019s Global Digital Ad Spending Update Q2 2020<\/a>, released this week, also paints a similar picture. While worldwide digital ad spending will achieve a modest 2.4% growth this year, it\u2019s expected to bounce back with a growth of 17% in 2021.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Decline of the duopoly<\/h4>\n\n\n\n

While a quick V-shaped recovery in digital ad spending is good news for publishers, the Google-Facebook duopoly is expected to bear significant losses in ad revenues, with Google declining for the first time. <\/p>\n\n\n\n

\u201cGoogle will suffer a 3.3% loss in ad revenues this year, driven in part by a huge decline in travel-related search queries,\u201d says<\/a> eMarketer forecasting writer Ethan Cramer-Flood.<\/p>\n\n\n\n

\u201cFacebook will muddle through with 5.9% growth on the strength of its display business. This is still a significant downturn compared with Facebook\u2019s 26.6% growth in ad revenues in 2019.\u201d<\/p>\n\n\n\n

Rise in the major markets<\/h4>\n\n\n\n

A country-wise breakdown of eMarketer data also predicts a bounceback in the major markets. <\/p>\n\n\n\n

For example, while there will just be a 1.7% increase in US digital ad investment this year, it\u2019s predicted to shoot up in 2021, and maintain that momentum going forward.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

US digital ad spending will inch up by less than 2% this year because of the economic dislocation caused by the coronavirus pandemic, though we expect robust growth to resume in 2021.<\/p>Nicole Perrin, eMarketer Principal Analyst<\/cite><\/blockquote>\n\n\n\n

China\u2019s total ad spending will remain in positive territory in 2020. Digital ad spending is estimated to rise by 5.0%, to $75.33 billion.<\/p>\n\n\n\n

According to eMarketer, \u201cits $75.33 billion total will still easily rank China as the second-largest market worldwide for digital advertising. Overall ad spend will total $105.25 billion.\u201d<\/p>\n\n\n\n

China\u2019s total ad spending on digital and traditional advertising will exceed Western Europe\u2019s combined spending for the first time ever this year. By 2024, China will shoot past the $150 billion mark, far exceeding Western Europe\u2019s combined total at that point ($127.90 billion).<\/p>Ethan Cramer-Flood, eMarketer Forecasting Writer<\/cite><\/blockquote>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

In China, mobile ad spending will outperform all other categories this year, at 13.0% growth. Mobile will represent 63.6% of all ad dollars spent, and an overwhelming 88.9% of digital ads.<\/p>\n\n\n\n

In the UK ad market, eMarketer predicts \u201cdigital ad spending will see marginal growth, fueled by the resilient performance of digital display, particularly video.\u201d<\/p>\n\n\n\n

Digital video spend will see a dip in its growth rate this year, but there will still be growth\u2014of 15.0% in fact\u2014a remarkable feat against a backdrop of declines in ad spend across most formats.<\/p>Bill Fisher, eMarketer Senior Analyst<\/cite><\/blockquote>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Mobile and video are also holding strong in Canada. <\/p>\n\n\n\n

\u201cSpending on mobile ad formats will grow 8.0% this year\u2014much of the growth displaces spending in desktop digital\u2014accounting for 44.9% of total media ad spending,\u201d says<\/a> eMarketer senior analyst Paul Briggs.<\/p>\n\n\n\n

\u201cVideo display\u2019s growth is also strong, increasing 3.6% in 2020 as social media ad units drive growth in the format.\u201d<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

Even Latin America, no stranger to turbulent market activity, is seeing a growth in digital advertising.<\/p>\n\n\n\n

\u201cWe expect that digital ad spending in Latin America will grow 5.0% to $9.33 billion,\u201d says<\/a> eMarketer research analyst Matteo Ceurvels.<\/p>\n\n\n\n

\u201cDigital platforms will claim 39.1% of all media spending, fueled by an uptick in digital ad dollars from advertisers in the region\u2019s two largest ad markets, Brazil and Mexico.\u201d<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

In fact, the region will be home to the world\u2019s three fastest-growing digital ad markets this year: Colombia (11.2%), Chile (5.9%) and Brazil (5.2%).<\/p>\n\n\n\n

Although right now ad spends are down globally, these are strong indicators of an impending bounceback. And we find hope in the words<\/a> of eMarketer’s Principal Analyst Nicole Perrin:<\/p>\n\n\n\n

We expect robust growth to resume in 2021.<\/em><\/strong><\/p><\/blockquote>\n\n\n\n\n\n

The research is available from eMarketer here:
Global Digital Ad Spending Update Q2 2020<\/strong><\/a><\/p>\n\n\n\n\n

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Just yesterday we reported the findings of Gartner\u2019s Annual CMO Spend Survey Research 2020 where 73% of CMOs dismissed economic pessimism, expressing confidence that COVID-19\u2019s negative impacts will be short-lived. Despite a dramatic deceleration caused by the coronavirus pandemic driving down ad spend globally, there are now significant signs of recovery. V-shaped economic curve The […]<\/p>\n","protected":false},"author":20,"featured_media":31661,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,550],"tags":[],"yst_prominent_words":[4269,34014,34010,34007,34013,34012,1503,2311,4637,34009,34006,34022,16513,34008,34005,34023,34024,34015,34011,34016],"acf":[],"_links":{"self":[{"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/posts\/31653"}],"collection":[{"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/comments?post=31653"}],"version-history":[{"count":0,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/posts\/31653\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/media\/31661"}],"wp:attachment":[{"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/media?parent=31653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/categories?post=31653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/tags?post=31653"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/mediamakersmeet.com\/wp-json\/wp\/v2\/yst_prominent_words?post=31653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}