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Down 10.7% to $26.7bn. This was not due to a decrease in demand. On the contrary. The demand skyrocketed as people stopped eating in restaurants. Cafes and bars and moved consumption into the home. Instead. FMCG companies were faced Portugal phone number with the challenge of ramping up production. While supply chains were disrupted. And using the limited distribution available to get their products onto store shelves or into consumers’ homes. As a result. Many FMCG companies cut back on promotional activity for products they couldn’t get to consumers fast enough.

Enough to meet demand. And invested in distribution infrastructure. Especially ecommerce operations and partnerships. Zenith expects the recovery of FMCG ad spend to more or less keep pace with the market as a whole between 2021-2023. A rebound in 2021 is Portugal phone number almost inevitable. Given the comparison to the sharp drop in 2020. Particularly during the Q2. Although it will still be 6% below 2019 levels. FMCG companies face uncertainty about how quickly consumers will return to stores and to what extent their behaviors have been negatively impacted. Permanently due to the pandemic.

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However. Now that the FMCG e-commerce infrastructure is being put in place. Brands will need to increase their advertising spend to support it. Zenith forecasts annual growth of 4.4% in FMCG ad spend between 2020 and 2023. Reaching $30.3 billion in 2023. By that time it will have fully recovered from the pandemic-induced drop in ad spend. Surpassing ad spend Portugal phone number levels of 2019 at 500 million dollars. The drop in investment due to Covid in Spain has been. In this sector. Much less than in others and it is expected that cinema and OOH. The two media that lost the most. Will recover in this 2021 the land they gave up. India leads ad spend growth but China leads digital transformation.

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Zenith forecasts India to be by some distance the fastest growing market over the next three years. With FMCG ad spend increasing from 14% per year. It will benefit from burgeoning consumer demand as disposable income rises rapidly. Coupled Portugal phone number with the expansion of the underdeveloped advertising market: advertising accounts for just 0.3% of India’s GDP. Less than the half of the world average of 0.7%. The rest of the markets in the report are expected to grow steadily between 2% and 5% per year. In Spain. The two main media for advertising investment among FMCG brands are television and digital. 9 out of every 10 EUR that are invested in FMCG. Do so in these two media.

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6 in television and 3 in digital. In 2020. Television lost 7 share points. Going from 66% to 59%. While digital gained 9. From 24% to 33%. And these figures are expected to be maintained. China stands out as the market where brands have most rapidly adopted ecommerce and digital advertising. In 2020. Chinese brands in the FMCG sector spent 71% of their Portugal phone number budgets on digital advertising. Compared to 46% of the 12 markets. Here. These brands focus on online video. Which has a wide and wide reach and is open to commercial partnerships. This can mean advertising on online shows. Or special influencer livestreams. Where viewers they can directly buy the items shown.

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