In recent months, much has been said about the impacts that the pandemic would have on the advertising sector. The advertising industry was facing one of the most difficult moments in terms of revenues and earnings with advertisers who were cautious in the face of an uncertain outlook.
Even though since the end of last year the promise of the vaccine was already a reality, the expectations for the industry were precarious.
According to the conclusions delivered by WARC in its Global Advertising Trends: State of The Industry 2020/21 study, it would take years for the advertising market to recover the numbers it had before the health crisis.
During this year, the forecast indicates that an advance of 6.7 percent will be registered, a percentage that will barely reach to recover 59 percent of what was lost during 2020.
In a timely manner, it was estimated that last year ended with a collapse in advertising revenue of 10.2 percent, which translates into $ 63.4 billion in the overall value of the global advertising market.
The truth is that these forecasts could be far from the recovery that the sector is currently experiencing, since the reactivation of many markets, the extensive vaccination campaigns and the need for advertisers not to lose relevance, have been crucial factors for giants like WPP report numbers on the rise and close to those reached in the pre-pandemic era.
What is recognized as the largest advertising holding company in the world, released its financial results for the second quarter, where it echoes a 19.3 percent advance in billing during the last 3 months.
With this advance, the benchmark in the advertising industry exceeded its own expectations with growth for the first half of the year of 11 percent, which has allowed it to significantly approach the figures registered during 2019.
“We have seen a strong recovery in the first half of the year, with LFL growth in revenue minus transfer costs in all sectors and most major markets. On a two-year basis, we are 0.5 percent ahead of 2019 performance during the first half in terms of LFL revenue minus transfer costs, having been slightly below 2019 levels in the first quarter of the year. ” is stained in the report.
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Specifically, it is indicated that this has to do with the return of the investments of the clients who were especially interested in digital media, in e-commerce and in technology.
However, it has not been the only item in which the demand has grown. Mark Read, CEO of WPP, said “We are also seeing steady growth in public relations and public affairs due to significant growth in internal communication and corporate reputation.”
At this point, it is worth recognizing the performance by group of WPP clients, where the sectors that led the growth were those of consumer packaged goods, technology and medical and pharmaceutical care, which together accounted for 54 percent of the income of the holding company.
These types of results make it clear that the advertising industry is about to experience an interesting resurgence where, although there will be many new rules that must be considered, the opportunities for development in business and creative terms will come wholesale.