December 2020 Media Group Online, Inc. Newsletter

That Was the Year That Was

Although no one will ever forget 2020 and are eager to put it behind us, it was (and will continue into 2021) a year with many important lessons. For many, it was a wake-up call that our headlong rush into the future is not a straight line and we must be prepared to adjust quickly and follow another path, if necessary.

For those in media sales, the year was certainly challenging, but the damage to global ad spending will not be as bad as forecasted during the early-pandemic period. According to group^m, the decrease will be 5.8% worldwide, but during June, its estimated was an 11.9% decrease.

By comparison, during 2009 and the Great Recession, global ad sales decreased 10.9%. Additionally, the global, regional and national economies won’t require as much time to rebound as they did when the recession hit.

Of the eight countries in the group^m report, This Year Next Year, all will experience declines in ad sales (excluding the robust US political advertising in the calculations), but all are expected to generate positive sales for 2021, some even double-digits gains.

Total Ad Sales Trends in Selected Countries, 2020 vs. 2021

  group^m, December 2020

As expected, digital advertising received a boost during 2020 with so many consumers ordering groceries, apparel and many other products online. Nonetheless, group^m reports an 8.2% increase for 2020, which is less than the previous six years when global digital advertising increased 20%.

The pure-play platforms, such as Amazon, Facebook, Google, etc. will continue to grab the largest portion, or 61% of 2021 global advertising. The digital portion of traditional ad media will do well during 2021, slightly more than doubling its share of all traditional advertising from 2016, or 15% and 7%, respectively, and totaling $37 billion.

Continued patience and planning is the best strategy today to maximize opportunities during 2021 and beyond.