U.S. advertising and marketing spending will fall 7.1% this year to $494.23 billion, according to a new forecast released today by media industry economists PQ Media.
That's a steeper rate of decline than the 6.8% decline global advertising and marketing spending is projected to sustain, although most of the world's markets have experienced a significant impact from the global COVID-19 pandemic.
“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,” PQ Media CEO Patrick Quinn said in a statement released with the new report, which projects the global advertising and marketing economy will fall to $1.278 trillion, it's lowest volume since 2017.
Advertising's share will erode faster than the overall marketing industry, declining 7% worldwide to $583.71 billion, while all other areas of marketing spending will fall 6.6% to $694.23 billion.
PQ projects that the global advertising and marketing economy will rebound in 2021, expanding 5.9% from 2020, driven mainly by the accelerating of digital media, which will grow at nearly twice the rate (11.3%) of the overall market expansion.