Telecom ads on its way to pre-pandemic level
Telecoms advertising will grow at an average rate of 4.5% a year to 2023 as its recovers from an 8.7% decline in 2020, according to media agency Zenith’s Business Intelligence – Telecommunications report. Zenith is part of Publicis Media.
- Telecoms adspend will return to 2019 levels of spending in 2022
- Digital advertising will be the only channel to grow between 2019 and 2023
- India and Russia will lead adspend growth as smartphone penetration spreads more widely
”Smartphone sales will start to spring back this year once consumers feel more confident in their future. Meanwhile, the networks will seek to recoup their investment in 5G licences and infrastructure through new services and more expensive data packages.”
Zenith predicts telecoms adspend will grow 4.7% in 2021, 4.4% in 2022 and 4.3% in 2023.
Telecoms brands are cutting back their spending on traditional television and radio as their reach declines, but less rapidly than brands in most other categories. Zenith forecasts that between 2019 and 2023, telecoms brands will reduce their television adspend by an average of 2.0% a year, compared to a 3.5% annual reduction across all categories.
They will also reduce their radio adspend by 2.8% a year, compared to 4.1% a year for the market as a whole.
Zenith forecasts that India will be the fastest-growing market for telecoms advertising between 2020 and 2023 by some distance, with 11% annual growth. Russia is another market with relatively low (57%) but fast-growing smartphone penetration, and here telecoms adspend is forecast to rise rapidly too, by 8% a year.
Most of the other markets in this report are forecast to grow by between 3% and 6% a year to 2023.
The 12 markets included in the study are Australia, Canada, China, France, Germany, India, Italy, Russia, Spain, Switzerland, the UK and the US, which between them account for 73% of total global adspend
“The rollout of 5G services will allow mobile operators to supply bundled voice, data and entertainment services to the home and compete directly with landline broadband,” said Jonathan Barnard, Head of Forecast, Zenith. “This will spur greater competition to put together the most attractive services at the best prices and help stimulate a sustained recovery in telecoms adspend to at least 2023.”
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