Dentsu has issued a revised ad spend forecast for 2021 that is far more upbeat than its previous spend projection issued in January.
The firm now says it expects global advertising to grow by 10.4% to $634 billion while U.S. spending is expected to jump more than 13% to $240 billion.
Back in January it was predicting a global gain of just 5.8% for 2021 with just a tepid 3.8% gain for the U.S. market.
“The ad market is forecast to fully recover in 2021, exceeding pre-pandemic spend sooner than was previously forecast,” Denstu stated in its latest report. “All forecasts continue to be dependent on a number of factors and are subject to change.”
Canada, the US and Australia are expected to be fastest growing markets in 2021 while digital continues to drive the broader recovery, returning to double digit growth. It will represent 50% share of global spend this year.
“The decline in global advertising spend prompted by the pandemic in 2020, has proved to be less severe than originally anticipated” the company stated. “While 2020 remains the weakest performing year since the global financial crisis, the decline in growth during 2020 has proved less severe than anticipated and has been raised since Dentsu’s January 2021 forecast from -8.8% to -7.2%.”
Growth will continue in 2022 per the report at faster clip globally than initially projected-- +7.2 versus the earlier forecast 6.9%. U.S. growth next year is expected to be 8%.