A U.S. advertising industry gripped by a downturn amid the coronavirus pandemic should be preparing for ad spending to return to pre-public health crisis levels in 2021, MoffettNathanson analyst Michael Nathanson predicted on Tuesday. "Given both the shifts in consumer behavior to e-commerce and the ability of digital to produce more targeted and efficient results, this snap-back is essentially fueled by a return to growth in digital spending at the two largest ad platforms (Alphabet and Facebook)," a bullish Nathanson argued in an investors note.
He forecast U.S. advertising growth to fall by 8.6 percent in 2020, led by a 13 percent decline in traditional spending and a 3 percent fall in online ad spending.