GroupM’s This Year Next Year mid-year report released today says that global audio advertising is likely to decline by 23% during 2020, as advertisers disinvest in part because of its association with away-from-home activities such as driving.
The report says the medium’s total global ad revenue will equal $25 billion but the value to marketers is likely to hold up as relatively high levels of listenership and reach continue to help make the medium relatively effective.
Digital extensions of the medium, including streaming services from terrestrial stations and their digitally oriented competitors and podcasts, remain relatively small in the low single digit billions, but help make the broader medium more appealing to marketers.
According to GroupM, during 2020, the global advertising economy will fall by 11.8%, excluding the effects of increased political advertising in the U.S. This is a sharp decline from the growth rate from 2019 of 6.2% and returns the industry to slightly higher than 2017 levels in constant currency terms.
Among other top 10 markets from 2019, they expect to see the following rates of decline:
• Australia: 19%
• Japan: 20%
• United Kingdom: 12.5%
• Germany: 9.9%
• France: 15%
• Canada: 5.1%
• Brazil: 29.1%
• South Korea: 1.8%
Marketing groups that face the biggest challenges are Travel, automotive and much of the entertainment industry.
Retail and food services have also face huge challenges but have been presented with significant opportunities to adapt their operating models.
Some retailers have been able to integrate digital or virtual activities with their traditional trading models.
And while 2020 is going to be a tough year, GroupM expect a quick turnaround in 2021 for some countries with double-digit growth among the top 10 markets including Australia (25.2%), Japan (15%), the U.K. (12.6%), Germany (10.6%) and Brazil (15.0%).
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