Spending on advertising set to plunge 17pc in 2020, says Group M
ADVERTISING spend is forecast to decline by 17.2pc in 2020, with outdoor advertising likely to be the worst hit, according to a new report by leading advertising agency Group M.
A fall of just over 17pc for the year compares with a fall of 11pc in 2008 due to the global financial crisis. In the past seven years there has been low to mid-single digit growth in the market.
“Considering that economic growth will be significantly worse in 2020 relative to what was observed in 2008/9, it follows that the outcome for advertising in 2020 is proportionally worse despite, or perhaps because of, the plethora of communications options now available to brands,” said the report.
Irish group chief executive Bill Kinlay said that while there were some positive signs in the market for August, the real indicator would be September when ad spend traditionally picks up after the summer months.
“By now, the Irish ad market is starting to stabilise after an initial freefall that began in late March,” said the Group M report. “While a large chunk of spending is lost for the rest of the year, and forever in some cases, the portion that was deferred is returning. As a result, some sectors are now increasing spending to take advantage of market opportunities.”
The agency expects television advertising to decline by 23pc in 2020 and then grow by 9pc next year.
Digital advertising is forecast to fall 6pc during 2020 with a rebound next year of 12pc. Radio is expected to fall by 15pc this year and then grow by 7pc next year. For print, Group M expects a fall of 36pc in 2020 and a 4pc gain in 2021.
Out-of-home advertising is forecast to have a 38pc decline and growth of 9pc next year.