Magna also raised its U.S. ad spend forecasts for next year. Excluding cyclical events, it now expects 5.6% growth in 2024, up from a prior 5% forecast. When including cyclical events such as the Summer Olympics and the presidential election, Magna now expects an 8% jump in ad spending next year, higher than the 7.3% forecast it gave in June.
More: Analyst predicts 8.1% growth in 2024 with election boost
Brightening economic conditions such as slowing inflation and a 2.4% increase in national GDP have Vincent Létang, head of global market intelligence at Magna, cautiously optimistic.
“Lower inflation fuels the recovery of consumer confidence, but the main concern that may hinder brand marketers’ willingness to invest in advertising is the weakness of retail sales, which were essentially flat between April and June,” Létang said. “That’s something we have to watch.”
Ad spend varied across verticals, with travel, pharmaceutical, retail and consumer packaged goods brands seeing an increase in the second quarter of 2023. Spending for CPG brands grew 16.5%, a “surprising” recovery that Létang attributes to the slowdown in inflation. However, even including digital formats, year-over-year ad spend in the finance and technology sectors fell 3.1% and 8.1%, respectively, in the second quarter.
from Digital Marketing Education https://ift.tt/Nq8RjtP
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