Australia the third highest growth market for ad spend in 2021: Dentsu
Dentsu has updated its forecast from January, predicating that all global markets will return to growth in ad spend in 2021, with an expected US$59.7 billion in incremental spend expected to flow globally this year.
The overall ad market outlook for 2021 is a recovery of 10.4% growth to a total spend of US$634 million, while Australia is expected to be one of the three fastest-growing markets in 2021, along with the US and Canada.
Dentsu Global Ad Spend Growth Forecast [click to enlarge]
The places Australia only behind Canada (14%), the US (13.7%), but ahead of the UK (12%) and India (10.8%).
The growth is attributed to “stronger than expected economic recovery,” Dentsu wrote, with TV and digital leading the way.
“The recovery has been much faster than expected in 1H 2021… TV is the key beneficiary of broad market ad spend in addition to government COVID-related campaigns, whilst digital ad spend has been driven by a surge in retail advertising and will represent 61.1% of spend in this market 2H 2021.”
Meanwhile, Dentsu expects growth in Australian ad spend to be boosted by the Tokyo Olympics, as well as a possible federal election in Q4, with a further 2.9% increase expected in 2022, reaching US$13.2 billion in ad spend.
Ad Spend Growth 2021 [click to enlarge]
Dentsu International CEO APAC, Ashish Bhasin, said: “Australia and India are two of the top year-on-year growth markets, forecasting a surge in ad spend.
“Australia has had a stronger economic recovery after the pandemic particularly in TV and Digital where the government focused much of their COVID-related campaigns, while India is expected to see a resurgence in Digital advertising spend though TV is still the main contributor with a 40.9% share.”
Growth In Global Ad Spend By Channel [click to enlarge]
Out-of-home (+14.6%), radio (+10.4%) and linear television (7.1%) will all return to growth globally this year, while digital was the only channel to grow in 2020 (+4.0%) and so far in 2021 (+15.6%).
The news is worse for newspapers and magazines, expected to lose 0.5% and 10.3% respectively in ad spend this year.
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