The Impacts of the Covid-19 Pandemic on the Marketing and Advertising Sector
In 2021 alone, the UK advertising market is expected to be at its highest. This comes because it has the potential to grow at a high rate. All of this comes as a result of Dentsu’s prediction reports on revenue spent on Ads. However, the company has already predicted that a very healthy recovery is underway for the UK’s market.
2021 Q1
As such, the end of 2021 will possibly see year-on-year growth that can range up to 10.4%. At this point, there’s only one other region that is in front. India comes top with a 10.8% increase. Other nations such as Italy, Canada, and France are also expected to join the upward growth trend with 5.9%, 7.2%, and 8.9%.
With that said, the United States will still be at the top this time since their expenditure ranges at 37.9% while the UK comes in fourth. However, the UK’s share is contributed by 5.1% as they are behind Japan and China. Both of them were expected to see a 17.6% and a 9.9% increase.
When it comes to predicting and understanding the behaviour of new customers, it can be quite tricky. Some of their behaviour will be temporary and can then convert into permanent long-lasting behaviours. However, this makes it even more demanding for advertisers far and wide in the upcoming period. At this point, most brands are extremely confident in their marketing tactics.
Most are focusing heavily on search, social and even video options. For them, these are the money makers. Thus far, these tactics have been exceptionally well as they continue to grow. However, in the midst of the global outlook, things are still somewhat uncertain for the upcoming months. Many companies are considering employing a full or part time marketing director to aid growth.
As a result of all of the data collected, some of the top advertising agencies are making monster predictions for the upcoming 2021 market. As 2020 came to an end, companies like Forbes managed to make a series of predictions. These were based on the works of Zenith, Magna and GroupM.
Presently there is an ongoing agreement that suggests that digital efforts will be the leading ones in the entire industry. However, cinema ads are also on their way to making a big return. More of this will be seen when people are vaccinated and the restrictions are lifted. Only when these are done then can everything return to a sense of normalcy.
Even the sporting industry is expected to make a comeback. This is predicted now that the Tokyo Olympics are set in motion. Experts at Magna continue to indicate that on a global level, ads are expected to see an increase of up to 7.6% in 2021 alone. This pushes the total to roughly $612 billion. Digital alone is still expected to rise by 10.4%.
However, linear media is much more modest with a whopping 3.5%. Linear media has seen some decline and experienced an overall decline of $42 billion in the year 2019. Leading industry giants had already predicted that India would come out on top with 26.9%.
Zenith continues to make massive predictions which indicate that up to $634 billion is still allotted to be spent. This is a rather record-breaking period for the ad industry. By 2022, another 5.2% is expected. This pushes the previous figure to $652. With the US election in 2020, the United States can expect to see some growth.
In the case of GroupM, they’ve been the most optimistic about everything ad-related. They forecasted the biggest jump at $651 billion and predicted that the largest growth can be seen by APAC and Latin America. Both are expected to see growths of 14.1% and 24.4%. In their report, they’ve indicated that digital media could rise to $396.8 billion with a 14.1% increase.
Projected UK Growth Revised Down for Ad Spending
According to the latest updates from the Advertising Association, expenditure reports indicate that the initial recovery in the upcoming year can be very slow. In essence, this is much less than previous estimates. The return-to-growth during the 2021 period is expected to be around 16.6% and was revised to now read 14.4%.
The entire period of 2020 has experienced a 14.5% decline and managed to lose £3.6. However, the Q4 period may offset some damages concerning festive ads. With that said there is still an upcoming decline in the final quarter.