Global ad expenditure to decline by 9.1% to $572 billion in 2020, finds study

New Ideas in MarketingEssential news for marketers, summarised by YouGov
July 27, 2020, 5:27 PM UTC

US ad spend is expected to be resilient this year with only 7% decline due to the deluge of political advertisements.

Global ad spend is projected to drop by 9.1% in 2020 before growing by 5.8% in 2021, based on Zenith’s latest spending forecast. Western Europe will experience a 15% drop, while Central and Eastern Europe’s ad spend will decline by 8%.

Despite cutting off digital ad budgets in the early days of COVID-19 crisis, businesses soon resumed digital campaigns due to their flexibility and performance optimisation abilities. Though digital ad spend is projected to shrink marginally by 2% this year, it will still account for 51% of the global ad spend.

Paid search advertising is expected to grow by 5% this year. In contrast, Out-of-home and cinema ad spends will decline by 25% and 51%, respectively.

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