By Sofia Serrano
After a rough year with a global pandemic and times of uncertainty, the economy seems to be re-establishing itself. This is reflected in global adspend. According to Publicis media agency Zenith’s latest Advertising Expenditure Forecasts report, this year expenditure will total $669bn, which surpasses 2019’s expenditure by $40bn.
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The Middle East and North Africa is forecast to see strong adspend growth of 15 per cent in 2021. Global growth in advertising expenditure is expected to stay strong in the medium term with a 6.9 per cent growth forecast for 2022 and 5.6 per cent for 2023. The pandemic gave e-commerce a boost and it continues to bring revenues to the ad market, driving 13 per cent growth in social media and 12 per cent growth in search in 2022.
Online audiences keep growing, as well as video viewers, which shrinks television ratings and results in advertisers valuing online video to maintain reach while television declines. E-commerce and online video will fuel an 11 per cent recovery in global adspend for 2021.
Television remains an effective form of brand communication in its own right, as it will still represent 26 per cent of the total MENA adspend in 2021. Back in 2013 television took the biggest slice of total MENA adspend with 41 per cent, a role the internet has taken over in 2021 with 43 per cent of the total.
Overall, the MENA region’s adspend has been decreasing for years as a result of conflict, political instability and volatile oil prices, with the pandemic exacerbating this trend. Zenith forecasts that adspend in MENA will still be 4.1 per cent lower in 2023 than it was in 2019.
All graphs represent MENA data. Source: Zenith.
