Global advertising and marketing spending, including traditional, digital and alternative media in all major markets worldwide, is on pace to drop 6.8% to $1.278 trillion in 2020, as the flash flood caused by COVID-19 and the pandemic’s continued ripple effects will result in the first media spending decline in 11 years, according to new research released today by PQ Media.
The global advertising sector is projected to shrink 7% to $583.71 billion for the year, while the overall marketing sector is expected to recede 6.6% to $694.35 billion. In the United States, total ad & marketing spending is on pace to fall 7.1% to $494.23 billion in 2020, according to PQ Media’s Global Advertising & Marketing Spending Forecast 2020-2024.
“While the economic damage wrought by the pandemic will squelch a decade-long expansion of the media economy this year, the emergence of new advertising and marketing opportunities in streaming video and audio; mobile gaming and apps; social media and influencer marketing; and digital product placement, content marketing and virtual events are expected to hasten the industry’s recovery going forward,” said PQ Media CEO Patrick Quinn.
Read More : SalesTechStar Interview with Scott Lasica, Chief Sales Officer at Stream
Global ad & marketing spend is projected to grow 5.9% in 2021, as both the advertising and marketing sectors return to growth tracks, driven mainly by 11.3% growth in the digital & alternative media segment. With digital & alternative media projected to post much stronger growth than traditional media over the next several years, PQ Media forecasts that digital & alternative media spend will command a larger share of the total ad & marketing pie than traditional media for the first time in 2023 – both in the overall global market and in the US.
Of course, this year has been a different story. The far-reaching impact of the pandemic upended advertising and marketing in leading media markets worldwide, devastating key industry verticals, such as airlines, hotels and tourism, and accelerating tectonic shifts already reshaping the landscape of major economic sectors, like retail, entertainment, automotive and financial services.
Read More : Three Ways to Measure Whether Sales and Marketing Teams are in Sync