Travel adspend recovery stalled until 2023 despite 36% boost next year

Campaign 22 Nov 2021 04:19

Travel adspend is set for a 36% annual rise in 2022 but will not return to pre-pandemic levels until 2023, according to new international estimates.

A total $16.4 billion (£12.3 billion) is projected for advertising on airline and accommodation next year across 13 major markets including the UK, the US and China, data from media agency Zenith shows.

The figure is up on the $12 billion estimated for 2021 – which is a 24% increase on 2020 – but is still far off the pre-pandemic level of $18 billion in 2019.

Analysts from Zenith do not expect travel adspend to surpass pre-pandemic levels until 2023, when $19.6 billion should be within reach.

“Pent-up” demand for travel by consumers who were restricted during the Covid pandemic will be the main driver for adspend increases over the next few years, the latest Business Intelligence report from Zenith said.

However, the agency warned it will be “a long road back to pre-pandemic spending” after the travel ad market lost nearly half its value in 2020, compared with just a 4% contraction across the whole ad market.

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