According to a report from ad agency GroupM, this reduction is set to be even worse than the 2008 financial crisis.
Television will be one of the worst-hit segments, with advertising expected to decline by 17.6% this.
The most impacted will be out-of-home advertising like billboards which will drop by 25%.
Digital advertising is expected to fare better, declining by only 2.3% in 2020. This segment will account for 52% of the advertising market – an increase from 48% in 2019. The report noted that advertisers are increasingly turning to digital ads as they are cheaper than TV and easier to start and cancel.
Despite this dire outlook, GroupM said that the decline would still only be modest, with the small businesses which have been most affected by the coronavirus already only making u; a small part of the advertising industry.
Following the easing of lockdown and expected covid-19 vaccine, the market is expected to begin its recovery in 2021 with 8.2% growth.