Global advertising market had a record year 2021, IMC experts agree
By Zion Rufus
Not only did the global economy recover from the wrecking grasp of the pandemic that halted major activities across the globe, the global and local ad markets also reached new heights as they exceeded pre-pandemic levels. Globally, media owners’ advertising revenues grew by +22% in 2021 to reach a new all-time high of $710 billion, following a decline of -2.5% in 2020, according to reports shared by global media investment and intelligence company, Magna Global.
Chief Creative Officer /CEO, X3M Ideas and President of the Association of Advertising Agencies of Nigeria (AAAN), Steve Babaeko submitted: “When this Exco was sworn in July 2020, I had my fears because we were in the middle of one of the most devastating pandemic the world has seen at least in about a century. My fears were: Would we even be able to deliver against our campaign promises; When the dust of the pandemic settles, would we still have an industry or business; With everyone struggling to stay afloat would our members be able to rally round the Exco to push our association forward? One year after, I am here to report to you that my fears are not just unfounded, the state of our union and our association remains stronger than ever before.”
In the same vein, Founder/ Group CEO, BrandEye/Mediaplus, and President, Media Independent Practitioners Association of Nigeria (MIPAN), Femi Adelusi shared in an interview: “I think it has been a good year compared to last year in terms of what has been termed, ‘the downturn’. For me, I see more upward swings in the level of activities from the brand management standpoint, even from the public service standpoint and government activities as well.”
Vincent Létang, EVP, Global Market Research at MAGNA and author of the 2021 global ad market report, noted: “The global ad market recovered above and beyond the economic recovery in 2021. Mature linear ad formats recovered to 90% of the pre-COVID level, just as the economy did. Digital ad formats, by contrast, grew much faster than expected, driven by multiple organic growth factors, e-commerce boom being the most significant. Traditional, brand- and privacy-safe media remain crucial to building consumer brands, as shown by the strong demand boosting TV costs in 2021, but marketers are increasingly diversifying into digital formats to reach hard-to-reach audiences, improve ROI and connect more seamlessly to e-commerce. This once-in-a-lifetime planet alignment of growth factors led to the unprecedented market growth we experienced in 2021.”
Similarly, James McDonald, Director of Data, Intelligence & Forecasting, WARC agreed: “Despite potential headwinds, market data show that we are currently witnessing a boom in advertising trade like none seen before, led by increased demand for retail media and ancillary publishers such as Google and Instagram, which is now the world’s largest social platform. Our projections show that this trend is set to continue, with Alphabet, Meta and Amazon now on track to account for more than half of an advertising market worth $1 trillion in 2025.”
Across digital ad formats, traditional ad formats, digital OOH and print, the report further revealed tremendous record growths.
Chibuike Goodnews the Co-founder of Dochase Adx Limited said: “For 2021, all digital marketing platforms witnessed a huge growth. We saw more share of the budget than ever; more demand and interest even from traditional players for digital advertising solutions.”
Managing Director of StarCom Media Perspectives, Jude Odia revealed: “Many advertising networks and media have seen growth in the 2nd and 3rd quarter. We have seen growth in terms of advertisers; agencies are beginning to put up because the markets are opening”.
Chief Operating Officer, COO of SO&U, Biodun Adefila added: “2021 has so far been more stable than the previous year. We remain hopeful and expectant that it only gets better.”
Even as the industry look forward to recording greater milestones in 2022, the global advertising market can collectively agree that 2021 was indeed a record year.
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