Digital advertisement expenditure will account for half of the world's ad spending for the first time in 2021, a Japanese advertising giant said Thursday, as internet use becomes more pervasive.
While the global ad industry was hit hard last year by the impact of the coronavirus pandemic on businesses, Dentsu Group Inc. forecasts a rebound in the market this year by 5.8 percent from the previous year to around $579 billion.
Data on the predicted growth of global ad spending between 2020 and 2022 is based on research in 59 countries and regions.
Dentsu said the global market shrunk by 8.8 percent last year but is expected to see a 6.9 percent growth, recovering to its pre-pandemic level by 2022.
The global expenditure on digital ads in 2021 will grow by 18.3 percent for social media ads, while the corresponding figures for search ads and video ads are 11 percent and 10.8 percent, respectively.
Television ads are expected to stay at around 30 percent of total expenditure and grow by 1.7 percent, boosted by major sports events planned for 2021 including the Tokyo Olympics and Paralympics.
Among pandemic-hit industries, the tourism and transport industries will increase its ads by 28.4 percent while the car industry will do so by 13.8 percent, the company said.