Leading agency network Dentsu has reported that advertising spends are likely to grow 5.8% in 2021.
The report released by Dentsu is based on data derived from 59 markets and predicts a global ad spend growth of 5.8% in 2021, amounting to $579 billion.
The report also said that advertising in Digital will be the driver for the growth. Ad spend in Asia Pacific, home to 60% of the world’s population, is expected to grow by 5.9%, with share of digital forecast to increase 9.1% to a share of 57.5% of all spend.
Commenting on the report, Ashish Bhasin, CEO, dentsu APAC said: “If the 2010s saw the rise of FOMO (Fear of Missing Out), the turn of the decade changed the feeling to FOGO (Fear of Going Out). Conspicuous consumption has been replaced by anxiety and sheltering, with many cautious about doing things that used to be ‘normal’, including shopping, using public transport, and being in crowded spaces.”
“By the summer of 2020, one third of the world’s population had been in some form of lockdown, huddling close to the safety of our homes, as our lives shifted online, resulting in considerable increase in the use of at-home media such as Netflix, Zoom, and Twitch,” he added.
“Accelerated by the pandemic and enabled by 5G, technologies which were once thought to be tough to embrace became our key enablers: AI, collaboration tools and social-commerce adoption usage surged. Based on our recent ad spend report, we are expecting to see a dramatic increase in virtual products and experiences. Now that we are unrestrained by physical space, we are at liberty to reimagine what a concert, conference, shopping experience, buying property, cars, attending a class should and can be. As contactless technologies make stores less human, online commerce has become more social and more personal, marking the rise of Social Commerce, powered by next generation live streaming platforms,” concluded Bhasin.