PQ Media‘s latest data indicates a significant rebound in multicultural advertising spending coming in the US, targeting Hispanic, Black, and Asian consumers. After a decrease of 5.7%, spending is expected to grow by 8.4% in 2024, reaching a record $45.83 billion.
The study highlights that the Hispanic segment will drive much of this growth, especially with the 2024 US presidential election on the horizon. This increase is particularly noteworthy in the context of long-standing concerns about the imbalance between advertising dollars allocated to Spanish-language media and the population size.
PQ predicts Hispanic media will command a dominant 68.3% share of multicultural media spend, more than double the combined share of African-American (28.8%) and Asian-American (2.9%) demographics. However, those segments are also forecasted to see nearly 8% growth in 2024. Hispanic-targeted radio stations are anticipated to see a substantial increase in political advertising revenue, with a projected 25% gain to $41 million in the 2024 political cycle.
Despite the projected increase, PQ Media noted a slowdown in multicultural growth in 2023, attributing it to various factors such as fears of a recession, the US Supreme Court’s decision on affirmative action, and the financial impacts of major brands taking stands on heavily politicized issues.
Overall, multicultural media spending in the US accounted for only 5.3% of the total US ad and marketing spend in 2023, a slight increase from 5.2% in 2017. PQ Media analysts predict a progressive change in the coming years, with high growth rates in experiential marketing, influencer marketing, content marketing, out-of-home advertising, and pure-play digital advertising.
