Marketing Spending Expected to Grow This Year
This year, advertisers will spend an estimated $389.5 billion, an increase of 7.2 percent over 2019’s $363.4 billion, research and consulting firm Winterberry Group projected in a recent report.
More than 57 percent of the total spending ($223.1 billion) is still expected to occur via offline channels, primarily linear TV, direct mail, and experiential marketing. The growth in offline spending this year, which will rise 2.3 percent, is attributable to the presidential election in November and the Summer Olympics. Meanwhile, print and radio advertising will continue to experience declines.
Winterberry Group expects continued digital channels to outperform other outlets, with spending to increase 14.5 percent to $166.4 billion. Emerging digital channels, including influencer marketing and video, are expected to grow at rates of more than 30 percent. Digital channels are maturing, according to the research, and social channels are close to reaching 25 percent of the total digital advertising and marketing investment in the United States.
“There is a lot to be excited about in advertising and marketing. From the experience economy, to mobility, to influencer, to [direct to consumer], to video and advanced TV, the opportunities are right in front of us to reach targeted audiences in personalized and meaningful ways,” writes Bruce Biegel, senior managing partner of Winterberry Group, in the report. “While privacy is a pillar of concern, it is also driving demand for improved data management and analytics, which we expect to see grow at a healthy clip in 2020.”
Winterberry Group’s 2020 Outlook further expects data and data services to grow to $23.2 billion, up 6.3 percent over 2019. The increase is led by the rise of data-driven digital ad spending, the shift toward customer data platforms, and a focus on improving insights and decisioning.
“While [the California Consumer Privacy Act] in 2020 is an overhang on the market, we currently expect its true impact on third-party data spend to be felt later in the year as marketers catch up to compliance demands,” Biegel adds in the report.