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Ad revenues groing 22% in 2021

Advertising revenue expected to grow 22% as markets recover

Advertising and media company GroupM expects a 22% growth in media ad revenue in 2021, a marked improvement from the company’s prior forecast. In total, the company estimates total media company ad revenue will amount to USD 279 billion in 2021 and rise to USD 388 billion by 2026.

Digital advertising (excluding political advertising) will grow by 33% in 2021, building on last year’s 10% rate of expansion. At this pace of growth, digital will account for 57% of all advertising for the United States, the forecast says.

The company expects that by 2026, digital advertising will continue to drive—and outpace—the overall market, accounting for 69% of the industry.

For 2021, National TV—including Connected TV+ advertising and linear forms of the medium is expected to grow by 8.7%, a full recovery from 2020’s 6.9% decline.

“Looking beyond 2021, we expect flat trends, with incremental shifts out of television by large traditional brands offset by incremental spending by newer ones.”

At the time of its last forecast in March, GroupM wrote, “It was evident that the ad market was relatively strong during the first quarter and that it would further benefit from high inflation across the economy. lifting our expectations for growth. But we didn’t fully appreciate just how much the economy and advertising market were heating up. It was only after we saw results for the quarter from the likes of Google, Facebook and Amazon (and Snap, Pinterest and others) that we could appreciate just how strong the market was, especially for digital media.”




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