by Joe Mandese @mp_joemandese
Source: www.mediapost.com, March 2024
Reversing a long-term trend toward globalization, the U.S. has once again begun increasing its share of global advertising and marketing spending, according to a just-released forecast from the media economists at PQ Media.
This year, PQ projects the U.S. will account for a 39.7% share of the global marketplace, up more 38.6% share in 2018.
The share shift likely reflects a number of macro economic factors such as the effects of the global COVID-19 pandemic, as well as economic slowdowns, but also some secular shifts in the marketing mix, especially the rise of digital and “alternative” media in the marketing mix.
The total global advertising and marketing mix is estimated to have expanded 4% in 2023, but is forecast to expand at nearly double that rate — 7.7% — this year.
While spending in the U.S. expanded only 3.7% in 2023, PQ forecasts it will expand more than double that — 8.2% — this year.
Much of 2024’s expansion reflects the effects of quadrennial events including the U.S. presidential election-related ad spending, as well as global events such as the Paris Summer Olympic Games.
“Overall growth rates in the global and U.S. markets in 2023 were the lowest since 2015,” the report notes, noting, “as inflation was at its highest rate in over 40 years, causing recessionary fears that led brands to slash media budgets across most platforms and channels, particularly in traditional media.
“Inflation rates cooled as the year progressed and supply chain issues began to level, except for gas prices affected by the ongoing Russia/Ukraine war. By December 2023, most brands were raising ad and marketing budgets in major global markets, except for Japan, as consumer confidence continued to rise, prompting heavy spending during the holiday season.”
“Early 2024 pacing data shows that brands continue to increase their budgets, as more consumers are shopping at brick-and-mortar stores, driving more miles in automobiles and attending events after years of being sequestered by the pandemic,” PQ CEO Patrick Quinn notes, adding, “If the 2024 Super Bowl audience is an indication of consumer viewing habits, we believe brands will spend top dollar to be included in the over-the-air, digital and streaming coverage of the Paris Summer Olympics as well.”
