Advertising revenue will increase 22% in the US in 2021

Total advertising revenue for media companies will reach $ 279 billion in 2021 in the United States.

The advertising industry had to face in 2020 a sharp drop in investment due to the pandemic and all the efforts of the sector are focused on the recovery arriving as soon as possible. And after a very difficult year, it seems that the figures are encouraging again.

This is what the mid-year report reveals “This Year Next Year” elaborado por GroupM, in which the WPP media company forecasts 22% growth in US media advertising revenue in 2021 -excluding political spending-, which is a very notable improvement over its previous forecast.

According to their estimates, the total advertising revenue of media companies would amount to 279,000 million in 2021 and 388,000 million in 2026.

GroupM chart

“At the time of our last update, published in March, it was clear that the advertising market was relatively strong during the first quarter and that it would further benefit from high inflation throughout the economy, raising our growth expectations. But we couldn’t fully appreciate how much the economy and ad market were heating up. It was only after seeing the quarterly results of companies like Google, Facebook and Amazon (and Snap, Pinterest and others) that we could appreciate how strong the market was, especially for digital media, ”the company said in a statement.

Forecasts for the investment in digital, the medium that has been promoted the most in recent years, are even more favorable. GroupM expects online advertising (excluding political spending) to rise 33% in 2021. At this rate, it will account for 57% of all advertising in the United States (and 69% by 2026).

With respect to TV, they expect advertising to be maintained relatively stable after a year of recovery-driven growth. By 2021, National TV, including Connected TV + advertising and linear forms in the medium, is expected to grow 8.7%, a full recovery from the 6.9% drop in 2020. Starting in 2020, the group expect flat trends.

The rest of the media represent 20% of the investment in 2021, a percentage that will fall slightly until 2026 despite the growing importance of its digital extensions, such as podcasting, digital OOH and digital-only magazines and news.

Audio media will grow 25% this year (excluding politics), although this is due to a 27% drop last year. Combined, the medium would close 2021 almost 9% below the levels of 2019. GroupM expects stability from 2022. Likewise, they highlight the great growth of podcasts.

The figures surrounding the external advertising will be similar to those of the radio in 2021, with a 21% growth this year, taking into account the 27% decline in 2020. Combined, 2021 will likely be around 12% below 2019 levels. Mind you, unlike audio they expect outdoor advertising to enjoy continued growth beyond next year.

The print media, including newspapers and magazines, will continue to decline in 2021, according to GroupM forecasts.

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Source: Marketing Directo by

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