Is the advertising glass half empty or half full? CMOs are giving a thumbs-​up to the U.S. ad market. The 2025 advertising outlook includes a spending increase of 5% more than 2024 for a total ad spend of $384.6 billion. 

As media sellers and agencies set their goals for the coming year, they need to know which verticals and media formats are on a growth path. The U.S. Marketing Spend Outlook, 2024, from Plural Strategy Group, supplies some answers. And The Global Ad Spend Forecast from Denstu offers a fresh perspective.

Anticipated Spending Increases

B2B versus B2C

Plural Strategy Group’s data encompasses the entire marketing budget. In the U.S., they estimate the B2B market at $106 billion and the B2C market at $656 billion. (Note that the B2C data excludes political spending.)

The B2C marketing channel spending breaks as follows:

• Marketing employees $207 billion
• Paid media digital $230 billion
• Paid media traditional $65 billion
• Agencies/​services $73 billion
• Events/​sponsorship $42 billion
• Tech and data $38 billion

The B2B breakout by channel is a bit different. Paid digital media is at $12 billion, while traditional media is estimated at $15 billion. The spending for outside agencies and services comes to $19 billion. The biggest piece of B2B spending goes to events/​sponsorships — $23 billion.

While the B2B market is significantly smaller than the B2C market, plenty of selling opportunity exists.

Strong Verticals

Dentsu analysts say nearly 90% of CMOs anticipate marketing budget growth in 2025. They are also concerned about their ability to make the most of their media spending. This spending level may be much higher than the economic growth rate of 2.5%.

This situation drives a need for “media specialists.” Dentsu analysts highlight the need for “media craft.” Individuals with this expertise can help their clients stand apart from the crowd.

Targeting growth sectors is one way to make that happen. When considering the advertising outlook, remember that some B2C sectors are doing better than others. For example, CPG spending – directed at consumers — has been a bright spot.  Here’s the data on recent ad spending increases in strong verticals.

• CPG 12%
• Telecom and media 2%
• Automotive 1%

In other industries, a drop in ad spending is likely in the works as shown below:

• Financial services (-1%)
• Pharma and health care (-2%)
• Retail (-3%)
• Tech (-4%)

While it’s fine to target high-​growth sectors, don’t give up on prospects in sectors that may be cutting back on ad spending. With fresh target audience data from AudienceSCAN by AdMall, you can distinguish yourself from competitors. Show prospects which media formats influence their target audience and how those consumers respond to ads.

Intended Spending by Media Format

No analysis of the advertising outlook would be complete without reviewing what is happening with specific media formats. Businesses surveyed by Dentsu shared that they will be increasing investments as follows:

• Short-​term content on social 45% (Percentage of businesses planning to spend more)
• Social commerce 43%
• Influencer marketing 42%
• Retail media networks 41%

Retail media is expected to close out 2024 with $64.7 billion in spending. It will also capture more spending than broadcast TV in 2025.

While that trend is strong, marketers should remember the power of broadcast TV. The format still offers stability to marketers that find the connected TV marketplace bewildering.

They aren’t sure which channels to advertise on, and they don’t know how to measure results. But they do understand that younger generations do not watch as much traditional TV.

Because of the price correction in the AVOD market, businesses may be more willing to give this format a try.

Your Next Opportunity

Small business operators look forward to an incoming change in the administration in Washington, D.C.

The most recent survey from the National Federation of Independent Businesses touted a huge jump in optimism following the election. NFIB analysts noted, “This is the highest reading since June 2021.”

SMB operators expect the economy to improve (36% of small businesses). 14% believe it’s a good time to expand their business. In addition, the number of SMBs that expect retail sales to grow in the next several months increased significantly.

These accounts should play a big role as you consider the advertising opportunity for the coming year. Share the latest audience intelligence and industry trends with these prospects and start growing your own sales.

Photo by Viridiana Rivera on Pexels.