Posted by Latest forecasts predict digital advertising could comprise a 75% chunk of all US advertising by the year 2025 – signifying a historical milestone for the industry, and underscoring the significance of this strategy in reaching consumers of the future.
The S&P Global Ratings have upped their economic growth and ad forecast predictions, assuming a less severe than anticipated economic recession for the second and third quarters of 2023, and in spite of recent upsets in the banking sector.
As a result, S&P increased its ad forecast in the US by 20 basis points for 2023, citing this year’s recession should be shallower than previously thought.
While ad spends in various media categories are still predicted to decline during 2023 and see a modest rebound in 2024, the drop is expected to be less severe than previous figures forecasted, and growth of the overall digital ad market is slated to continue in the upcoming months.
“Digital ad growth expectations are unchanged for 2023 at 9.0%,” said Naveen Sarma, Senior Director, US Media & Telecom for S&P Global Ratings. “We expect 2024 growth to be slightly higher at 10.5%. We believe that digital advertising is a leading indicator of economic activity, therefore we expect improvement ahead of other forms of advertising.”
Cable and national broadcast TV advertising will decline this year between 4 to 5%, but broadcast TV will see a growth of 7% or more due to the summer Olympics in 2024, indicators say. Cable or national broadcast networks with a solid staple of sports programming will benefit, as well as those with a strong news presence due to a presidential election year in ’24.
Radio advertising is on track to experience a 10% decline, while outdoor advertising should see a modest increase. “We believe outdoor advertising remains an attractive way to reach consumers given its captive audience of drivers, commuters, and pedestrians,” reports S&P. “Especially with digital billboards allowing companies to quickly book business.”
To learn who will be the other winners and losers in the advertising arena in upcoming months and where to place your ad dollar, keep reading here.