Advertising spending in the U.S. is expected to fall eight percent this year, according to a recent survey conducted by ad industry trade group the Interactive Advertising Bureau.
IAB’s findings, which surveyed buy-side decision-makers on their projections for advertising spending and revenue in 2020, found that total traditional media advertising will decline about 30 percent this year from 2019.
The biggest hits are anticipated to affect the out-of-home ad market or advertising that reaches consumers in public places, which is expected to suffer declines of 45 percent. Media buyers estimate that print advertising will be down by 33 percent, followed by radio (-31 percent), TV advertising (-24 percent) and direct mail (-17 percent).
Estimated percentage change in FY 2020 ad spending vs. 2019
On the other hand, digital media is expected to see overall gains of six percent this year. Paid search advertising is anticipated to grow by 26 percent, followed by social media (25 percent) and digital connected TV advertising (19 percent).
Digital video is estimated to grow by 18 percent in 2020, and display ads could see a similar uptick of 15 percent.
IAB’s “2020/21 COVID Impact on Advertising” report surveyed 242 planners, strategists and media buyers at companies and agencies in early August.