$316B in Ad, Marketing Spending Arriving in 2018
American ad and marketing spending will far outpace GDP in 2018, at $316 billion — up 4.8 percent over 2017, and beyond the expected 2.8 percent growth in GDP slated for 2018, reads recent research.
Presented to marketers who start each year to his prognostications, Bruce Biegel, a senior managing director at Winterberry Group, detailed “Outlook for Data-Driven Marketing — 2018” at the Direct Marketing Club of New York gathering on Jan. 10.
One of his main findings is in the coming year, digital media spending will overtake offline media and marketing spend for the first time. With digital media purchasing at $100.8 billion, marketers will be buying a lot of display ($47.2 billion) and search ($40.7 billion) real estate. Finally surpassed by digital, offline’s behemoth will remain direct mail, at $42.3 billion. (Still, measured marketing, such as TV — at $70.5 billion — dwarfs both digital and offline, with measured reaching $117.4 billion in 2018.)
Biegel’s forecast shows consumer confidence, a tax cut, and a low unemployment rate and interest rate, may be among the factors contributing to the growth.
As for the channel getting seemingly 24/7 attention from consumers — mobile — marketers are increasing spending on it by 22.2 percent. But this fastest-growing digital outlay is only $3.3 billion — far from the largest part of the marketing pie.
Not to be forgotten in the data report, marketers are expected to budget $16.5 billion for direct mail, digital, email and TV data.
Biegel pointed out in his review of 2017 activity, the forecast may not achieve 100 percent accuracy — as last year’s predictions underestimated marketers’ “accelerated” shift to digital channels.
The slides show: “Newspaper spend declined more rapidly than forecast[ed], direct mail spend declined far more than predicted, contrary to forecasts that it would hold flat [and] display spend grew faster than anticipated, surpassing search again by the end of the year.”
What do you think, marketers?
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Related story: 2017: What Marketers Must Consider for the Year Ahead