In 2021 the US and worldwide ad economies will have expanded at their fastest rate ever.
That’s a prediction this week from three major US forecasting companies.
IPG Mediabrands’ Magna, WPP’s GroupM, and Publicis Media’s Zenith units have all revised the ad-growth consensus upwards. The new figures highlight more than three percentage points to +19.8% for the US and up four percentage points to +17.1% for the rest of the world.
Of the trio the most optimistic note was provided by Magna which revised its 2021 growth estimate for worldwide ad spending up 8.2 percentage points to 21.7% over the rate it predicted in June.
Ad revenues are rising as a response to difficult trading conditions in 2020 and the subsequent bounce back this year. In the consumer sectors at least, they are also powered by impressive growth in online retailing.
In a panel discussion Magna Executive Vice President-Global Market Intelligence Vincent Letang described the combined economic effects driving the record growth as a “once in a lifetime planetary realignment.”
GroupM 2021 growth estimate for the US was up 6.2 percentage points to +22.7% from its last estimate in June. It also boosted its 2021 growth estimate for worldwide ad spending up 3.3 percentage points to + 20.6%.
“This year over 2019 is well above historical norms,” GroupM Business Intelligence Global President Brian Wieser said during a press briefing on Friday. Wieser is also confident that the figures show that a platform for ongoing growth has been created.
The positive view on ad revenues is in line with recent results from publishers. Future Plc recently announced record growth in its Full Year results for 2021, posting total revenues of £606.8m (FY 2020: £339.6m).