By Rob Williams Publishing Insider, June 21, 2021,
Media spending continues to recover as the U.S. economy reopens, though publishers are seeing uneven results, according to data compiled Standard Media Index. The data and analytics firm last week said the U.S. advertising market expanded by 56% in May from a year earlier, a bigger gain than 53% for April and 22% for March. Newspapers are participating in that recovery, with ad spending that rose 10% in April and 8% in May. Those yearly growth rates are unlikely to be maintained, considering that April and May last year marked the beginning of a deep but short-lived recession as pandemic lockdowns went into effect. Newspapers will have a higher hurdle to clear in the months ahead.
These changes were reflected in ad spending, with out-of-home surging 98% from a year earlier in May and radio jumping by 122%. Those growth rates will be hard to sustain, but they are a welcome indicator that the threat of COVID-19 has subsided.
Going forward, the recovery in ad spending is likely to remain uneven, challenging publishers to grow revenue aside from advertising.