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Global advertising investment will grow by more than 6%

16/06/2020

There are already several international studies that claim that global advertising spending for next 2021, grow by 6.1% and 9% Spanish and Catalan. According to estimates presented by IPG Mediabrands, during the remainder of 2019 there will be a fall in advertising investment, which is estimated at 7% worldwide and 15% - 17% in Catalonia and Spain.

Sporting events stand as one of the key factors driving investment next year, but this year, global investment will be reduced by $ 42 billion worldwide. Advertising for conventional media will fall by 16% and digital advertising will grow minimally, only 1%. In Catalonia and Spain, 5 billion euros will be lost; conventional media advertising will be around 25% this year, and digital advertising will fall by 6%, although, according to those responsible for the report, social media and digital video will perform better.

Precisely, in the communications and marketing agency edeon , we are noticing this slowdown in advertising investment, in traditional environments, by customers, but a small increase in advertising investment in digital environments. "We have stopped investing in paper campaigns for months and all the campaigns we start are on Google and social networks," says Lluís Feliu, director of communication and marketing at edon.

For this coming 2021, the great hope of the whole sector is focused on the celebration of sporting events, such as the Olympic Games or the European Championship, canceled this year by the health crisis. Globally, the report details that the 12% drop in advertising investment has been on television, 32% in print media, 15% on radio, 22% for outdoor advertising and 40% for in the cinema.

In digital, the recovery of the rest of the year will offset the decline in the first half. Over the past few months, in general, less investment has been made in digital advertising, but the consumption of historical internet content has been achieved, which has benefited companies that maintain digital marketing strategies. The acceleration of online commerce and digital communication and marketing strategies will be the focus of this coming time. Search engine advertising will stagnate (fall by 1%) while social media and video will grow by 8% and display advertising will fall by 11%, as the COVID-19 crisis adds to growing restrictions of data-based segmentation, points out the same report.

Looking ahead to 2021, the projected economic recovery (between 4% of the IMF and 6% / 8% of the Bank of Spain) and major sporting events will help the advertising recovery, estimated at 9% total (7 % in conventional media and 12% in the digital environment). Although the report notes that "it will take three more years for the advertising market to return to the level of 2019", from edon we are optimistic with the communication and marketing campaigns of our customers because the consumer is still waiting for content, products and quality services, and all we have to do is change the channels and methods of impact, as has been done progressively in recent years, "says Lluís Feliu, who adds" in the 90s the advertising impact on television was 90%, now it is 20%, and companies are still selling, so we need to keep betting on digitization and increasingly on the personalization of high value content. "

Source: Marketing News