In 2023, the global advertising and marketing sector experienced a growth slowdown to 4%, however, a rebound is on the horizon for 2024 according to PQ Media. The firm’s latest forecasts indicate a surge in growth to 7.7%, fueled by political advertising.
Last year’s stagnant market performance was influenced by brands cutting back on advertising due to inflation concerns and the threat of recession. According to the latest data from PQ Media, the total spend in this sector reached $1.63 trillion.
Breaking down the figures, global advertising saw a modest increase of 2.6% in 2023, totaling $732.89 billion, while marketing expenditures rose by 5.1% to $897.69 billion. A notable shift was observed towards digital and alternative media, which spiked by 10.4% to $824.46 billion, contrasting with a 1.9% decrease in traditional media spending, which settled at $806.12 billion.
The United States, recognized as the world’s most significant media market, reported a 3.7% increase in ad and marketing spend to $645.08 billion last year, climbing to the 7th position in terms of spending growth globally. This uptick was attributed to substantial gains across digital and alternative platforms, with 29 of the 45 media channels tracked by PQ Media, including smart tech marketing and podcasting, showing double-digit growth.
Despite 2023 marking the slowest growth rates since 2015 amid high inflation rates, the trend reversed by December as brands began to increase their ad and marketing budgets in response to rising consumer confidence, leading to robust spending during the holiday season.
PQ Media CEO Patrick Quinn says, “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. 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.”
