You’re probably one of many Americans who have been concerned about the nation’s economy, especially over the last couple of years. The COVID-​19 pandemic and many other major issues have taken their toll on the economy. Despite all that, the global advertising economy is “poised for sustainable growth,” says GroupM, according to a MediaPost report. Businesses plan to increase their ad spending significantly for products in several categories over the next few years.

Ad Spending in 2021

In GroupM’s “Portraits of Change: The New Economy” report, the research spotlights big ad spending industries fueling ad industry growth. The top five key ad spending sectors are:

• Luxury
• Technology
• Automotive
• Consumer Packaged Goods
• Telecoms

Luxury

In 2021 alone, the luxury category ad spending has contributed most to the global advertising economy, increasing by 30% over 2020. According to AudienceSCAN on AdMall by SalesFuel, within the next year, Luxury Product Shoppers (non-​automotive) bought body spray or cologne (26.3%), smartphones (25.5%), liquor (24.2%), personal computers (21.7%), men’s clothing (20.6%), cosmetics (20.2%) and  jewelry and watches (20.1%). Additionally, 41.9% plan to vacation inside the U.S., 29.8% will buy a new car or truck, and 23.5% will buy new TVs with screens that are 55” or larger.

Technology and Automotive

Additionally, in 2021, the technology category ad spending increased by nearly 15%, while marketers in the automotive vertical spent an additional 13% compared to the previous year. AudienceSCAN research indicates that, within the next year, Americans plan to purchase:

• High-​end TVs: 18.3%
• Video game consoles: 12.9%
• Smart home technology/​devices: 10.8%
• New cars or trucks: 21.2%
• Used cars or trucks: 15.2%
• Electric vehicles: 11.5%

Telecom and Consumer Packaged Goods

And last, but not least, telecom industry ad spending increased by nearly 5%, followed by consumer packaged goods, growing by around 3 percent. According to AudienceSCAN, 21.3% of American adults plan to purchase new smartphones within the next year. 52.2% currently own Android smartphones and 45.6% use iPhones. For a better understanding of CPG, check out the AudienceSCAN profiles on Beer Drinkers and Cosmetics Shoppers. 

Ad Spending Growth by 2023

The ad spending growth for these five categories will not stop when this year is over. By 2023, luxury product ad spending will have increased by nearly 50% over 2020. Additionally, technology’ ad spending will have grown by nearly 35%, while businesses in the automotive sector will have boosted marketing budgets by nearly 30 percent. In addition, CPG will pull ahead of the telecom vertical with ad spending growth of about 13% versus an anticipated 10% growth rate by 2023.

And these are just the estimates as the world begins to open back up after nearly two years of social distancing from COVID-​19. As businesses continue to welcome in-​person shoppers and consumers become more comfortable going out, “we are in the exciting position of seeing which consumer behaviors adopted during the pandemic may be with us for the long term and how they will affect our culture, our economy and our industry,” writes GroupM.

Advertising Media

It’s up to marketers to stay on top of advertising trends in each industry but you can help by making sure your client’s ad spending is going toward the right media. With AudienceSCAN on AdMall by SalesFuel, you can stay up-​to-​date on which types of media your client’s target audiences respond best to. For example, did you know that, last year, the ad media that prompted the most Luxury Product Shoppers (non-​automotive) to take action were traditional TV, mobile/​text ads, and ads on social networks? Check out your client’s target audience behaviors and let them know if their ad strategy could use an update.

Want to learn how to target different audiences with ads based on their purchase intent? Download our free whitepaper: 2021 Update: Targeting the Five Types of Purchase Intent.

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