In today’s rapidly changing advertising landscape, understanding the shifts in spending between offline and online mediums is crucial for businesses. The latest data from the Winterberry Group’s “Outlook for Advertising, Marketing and Data 2024: A Market in Transformation” report, presented by Insider Intelligence, provides valuable insights into these trends.
Offline Ad and Marketing Spending
Despite the persistent dominance of online advertising, offline channels continue to hold a significant portion of the market. Here’s a closer look at the spending trends across various offline mediums:
Linear TV:
- Ad Spending: $55.7 billion, a decrease of 9.4%.
- Marketing Spending: $61.1 billion, an increase of 9.6%.
- Insight: While ad spending is declining, the significant increase in marketing spending suggests a strategic shift towards more comprehensive campaigns that might include integrations and sponsorships.
Experiential/Sponsorship:
- Ad Spending: $43.5 billion, an increase of 6.4%.
- Marketing Spending: $46.0 billion, an increase of 5.4%.
- Insight: The growing trend towards experiential marketing highlights the importance of creating memorable brand experiences.
Direct Mail:
- Ad Spending: $37.6 billion, a decrease of 9.8%.
- Marketing Spending: $38.2 billion, an increase of 1.5%.
- Insight: Despite the decline in ad spending, direct mail continues to be a reliable marketing channel for targeted campaigns.
Shopper Marketing:
- Ad Spending: $23.1 billion, an increase of 4.1%.
- Marketing Spending: $23.7 billion, an increase of 2.8%.
- Insight: Shopper marketing remains robust, reflecting the ongoing need to influence purchase decisions at the retail level.
Terrestrial Radio:
- Ad Spending: $11.8 billion, a decrease of 3.5%.
- Marketing Spending: $11.6 billion, a decrease of 1.5%.
- Insight: The decline in ad and marketing spending points to a gradual shift from traditional radio.
Out-of-Home:
- Ad Spending: $7.6 billion, a decrease of 1.0%.
- Marketing Spending: $7.9 billion, an increase of 3.5%.
- Insight: Out-of-home advertising remains relatively stable, with slight growth in marketing spend.
Magazine:
- Ad Spending: $6.2 billion, a decrease of 8.0%.
- Marketing Spending: $5.8 billion, a decrease of 7.4%.
- Insight: Print magazines continue to decline, mirroring broader industry trends towards digital.
Newspaper:
- Ad Spending: $6.1 billion, a decrease of 6.9%.
- Marketing Spending: $5.8 billion, a decrease of 5.0%.
- Insight: Newspapers face similar declines as magazines, indicating a continued shift towards online news consumption.
Addressable TV:
- Ad Spending: $3.4 billion, a decrease of 4.3%.
- Marketing Spending: $3.1 billion, a decrease of 9.4%.
- Insight: Addressable TV’s declines suggest challenges in targeting efficiency or competition from other digital video platforms.
Online Ad and Marketing Spending
Online advertising continues to grow strongly across nearly all categories, reflecting the ongoing digital transformation.
Search:
- Ad Spending: $107.5 billion, an increase of 9.3%.
- Marketing Spending: $120.9 billion, an increase of 12.4%.
- Insight: Search advertising remains a cornerstone of online marketing strategies due to its effectiveness and measurability.
Social:
- Ad Spending: $69.1 billion, an increase of 12.2%.
- Marketing Spending: $77.9 billion, an increase of 12.7%.
- Insight: Social media’s continued growth underscores its critical role in engaging audiences and driving brand awareness.
Display:
- Ad Spending: $50.8 billion, an increase of 10.4%.
- Marketing Spending: $59.0 billion, an increase of 16.1%.
- Insight: Display ads are gaining traction, potentially due to advancements in targeting and programmatic buying.
Video:
- Ad Spending: $26.2 billion, an increase of 10.9%.
- Marketing Spending: $30.5 billion, an increase of 16.6%.
- Insight: The growth in video spending highlights the demand for engaging content formats that capture viewer attention.
CTV:
- Ad Spending: $25.4 billion, an increase of 20.1%.
- Marketing Spending: $33.1 billion, an increase of 30.4%.
- Insight: Connected TV’s explosive growth signifies its rising popularity as more consumers shift to streaming services.
Digital Audio:
- Ad Spending: $8.4 billion, an increase of 11.0%.
- Marketing Spending: $9.3 billion, an increase of 10.0%.
- Insight: Digital audio continues to grow, driven by the popularity of podcasts and music streaming services.
Engagement Marketing:
- Ad Spending: $6.5 billion, an increase of 9.2%.
- Marketing Spending: $7.4 billion, an increase of 13.8%.
- Insight: Engagement marketing is vital for creating interactive and personalized experiences.
Influencer:
- Ad Spending: $6.3 billion, an increase of 15.0%.
- Marketing Spending: $7.2 billion, an increase of 14.3%.
- Insight: Influencer marketing’s growth underscores its effectiveness in reaching niche audiences through trusted voices.
Mobile Gaming:
- Ad Spending: $6.3 billion, an increase of 11.1%.
- Marketing Spending: $7.1 billion, an increase of 13.0%.
- Insight: Mobile gaming ads capitalize on the growing gaming audience and engagement rates.
Lead Generation:
- Ad Spending: $5.0 billion, an increase of 6.0%.
- Marketing Spending: $5.2 billion, an increase of 3.5%.
- Insight: Lead generation remains a crucial aspect of performance marketing.
Digital Out-of-Home:
- Ad Spending: $4.3 billion, an increase of 19.1%.
- Marketing Spending: $4.7 billion, an increase of 9.6%.
- Insight: Digital out-of-home growth is driven by the integration of digital technology in traditional outdoor spaces.
Affiliate (Network Fees):
- Ad Spending: $4.0 billion, an increase of 8.7%.
- Marketing Spending: $4.4 billion, an increase of 10.0%.
- Insight: Affiliate marketing continues to grow as an effective performance-based channel.
Conclusion
The landscape of ad and marketing spending in the US is marked by a clear shift towards online channels, driven by the demand for measurable, targeted, and engaging advertising formats. However, offline mediums still play a critical role, particularly in creating comprehensive, multi-channel campaigns. As we move further into 2024, businesses must stay agile, leveraging the strengths of both offline and online channels to achieve their marketing objectives.
