The last Net Advertising Volumes report outlined revenue data from 2019, and it revealed that total advertising spending from major reported media was valued at approximately $15.1 billion. The internet had the highest media ad spend at $8.8 billion, followed by television ($3.2 billion), newspapers ($1.4 billion), and radio ($1.4 billion).
News Media Canada collects and reports on annual revenue data for the daily and community newspaper industry. This data is then included in the annual Net Advertising Volumes report that gives a high-level view of advertising revenue data within the media sector. As we approach the midway point of 2021 and look towards projecting advertising spending trends for the rest of the year and beyond that, data on advertising spending from 2019 and 2020 plays a significant role.
In addition to News Media Canada, another organization that tracks ad spend is Standard Media Index (SMI) and their data from 2020 shows extensive digital revenue growth in the past year. At the beginning of 2020 in Q1, the majority of ad spend was allocated to offline media types, and digital only accounted for 44% of the total share. But due to the COVID-19 pandemic, as 2020 progressed, the total percentage of digital revenue continued to climb, reaching 57% in Q4 (13% higher than Q1), and reaching 63% by December, the highest share digital has reached in the past four years.
Media revenue data is instrumental in assisting publishers and other media professionals set advertising budgets for the year. For example, Group M’s research shows that in 2020, newspapers were down 40% in ad spend, while OOH was down 42.4%, magazines down 45%, audio/radio down 32.7%, and television was down 13.6%. However, Group M projects that in 2021, television will return to its 2019 spending levels, and newspapers, radio, and OOH will recover slightly too. Online advertising shows the steepest projected increase according to their data.
As it comes time again for newspaper data collection to commence for contribution to the 2020 Net Advertising Volumes report, it is important to keep in mind the significance that this information holds. Having access to industry data can help you better understand and improve certain business processes that can save time and money. And on the buy-side there is continued demand for accurate market intelligence as brands and advertisers plan their marketing and advertising budgets.
To download the 2019 Net Advertising Volumes report, click here.