
As some analysts express concerns about the effect that new tariffs will have on the global advertising market, US advertisers are expressing renewed confidence in the economy, leading to increased ad spending with radio getting a boost in planned investment.
New research from Advertiser Perceptions, conducted in December 2024 and January 2025, reveals nearly half of national advertisers expect the US GDP to grow in the next 12 months – double the 23% recorded in January 2023. This rising optimism follows years of recession fears that led many brands to hold back ad budgets.
The bigger the spend; the bigger the optimism: among brands with ad budgets exceeding $25 million annually, 58% predict GDP growth, compared to 40% of brands spending between $1 million and $25 million. A record 75% of marketers plan to launch new products in 2025, up from 55% in 2021. This surge in new offerings is expected to drive further increases in marketing and media budgets, with 37% of advertisers planning to increase spending in 2025 – up from 29% in 2024.
With this growth, AM/FM radio, podcasts, and streaming audio are expected to benefit.
The study also examined the role of brand-building in marketing effectiveness. A separate Prophet survey found that high-performing brands prioritize cohesive storytelling and consumer engagement, leading to stronger short-term sales impact. In contrast, underperforming brands that over-rely on performance marketing see reduced revenue and profit growth.
A new WARC report highlights “the performance penalty,” where excessive investment in short-term performance advertising reduces revenue returns by 20% to 50%. The findings reinforce the importance of maintaining a balanced marketing strategy that includes long-term brand-building alongside direct response efforts.
Advertiser Perceptions’ findings are covered in-depth in this week’s Audio Active Group blog.