In the current year, according to Magna, the income of Swiss media operators in the area of linear advertising formats has shrunk by a total of 15 percent, with cinema (-59%), radio (-19%) and OoH (-15%) experiencing the greatest erosion. The television advertising revenue fell to CHF 820 million net, a decline of twelve percent compared to 2019. Only the digital sector shows growth. The digital video formats (+ 13%) and social media formats (+ 11%) in particular contributed to the plus of four percent.
In particular, the travel and tourism, automotive, sports and leisure, telecommunications and clothing industries have been hit hard by the current crisis and have reduced their advertising expenditure by double digits, according to the IPG subsidiary. The finance, retail, food and beverage, and personal care industries, on the other hand, have shown themselves to be relatively resilient, maintaining or even increasing their advertising spending.
For 2021, the media purchasing organization is assuming growth in almost all types of media in Switzerland; only print will stagnate. One of the clues for their optimism is provided by the International Monetary Fund (IMF), which raised its growth forecast for real gross domestic product (GDP) in Switzerland, slightly improved between April and October, to minus 5.3 percent – one of the lowest rates of decline predicted for Western European countries are. A recovery of 3.6 percent is expected for 2021.
Magna puts the global advertising market in 2020 at a total of 569 billion US dollars net, a decrease of slightly more than four percent compared to the previous year. Sixty-six of the 70 analyzed markets have therefore shrunk. The two largest markets in the world, the USA (-1.3%) and China (+ 0.2%), were among the most resilient. In 2021, Covid vaccination, economic recovery, and delayed cyclical events would fuel a global recovery in marketing and advertising activity, up 7.6 percent to $ 612 billion.
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