The Covid-19 pandemic is also flooding advertising revenue around the world, with businesses in all sectors canceling their advertising. The World Advertising Research Center (WARC) estimates that the global advertising market will shrink by 8.1% or nearly $ 50 billion this year, with total advertising spending worldwide at $ 563 billion, up from a previous forecast. $ 612.6 billion.
Traditional media outlets are expected to suffer the biggest blow, with television advertising spending down 13.8% and newspaper entries down 19.5%. Advertisements in cinemas are expected to dive 31.6%.
The slowdown in advertising spending on social media is also expected to be significant, with forecasts of growth of 9.8%, although it was initially expected to increase by 20% this year.
By industry, advertising funds from transport and tourism companies record the largest decline, followed by companies in the entertainment industry. Even in the food sector – which enjoys an increase in turnover and online shopping – advertising spending is projected to decline by 7.7%, with the smallest decrease in advertising spending by pharmaceutical companies and healthcare companies.
Per region, the biggest drop in advertising spending is expected in Latin America (-20.7%), followed by Africa and the Middle East. The lowest impact is forecast for North America (-3.7%), while in Europe advertising spending is projected to decline by 12.2% this year.