Buyers increased their 2024 ad spend projections to +11.8%, up from +9.5% projected at the top of last yr, in keeping with a brand new IAB report.
The report, “The 2024 Outlook Study: August Update,” finds that the resilient economy, marked by a 2.3% rise in consumer spending in Q2 2024, has eased buyers’ concerns about economic instability. However, as media convergence gains traction, cross-channel measurement stays a top priority, especially for big advertisers with annual spends exceeding $50 million.
One of essentially the most notable trends highlighted within the report is the continued ascent of retail media. Buyers have revised their year-over-year projections for this channel from +21.8% to a formidable +25.1%. This surge in retail media investment underscores its growing importance within the marketing mix.
Meanwhile, buyers are maintaining their concentrate on cross-funnel KPIs while shifting efforts towards reach optimization as interest in latest KPIs wanes. The study also reveals that measurement challenges persist for the industry, whilst economic concerns subside.
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Interestingly, the report notes that goals can vary by channel. For instance, IAB’s latest Digital Video report found that inside digital video, buyers are determining success via business outcomes resembling sales and store/website visits.
The decline in concentrate on latest ad KPIs suggests a renewed interest in refining and leveraging established metrics to realize cross-funnel goals. This shift in focus from economic worries to measurement challenges and consumer insights indicates that the industry is moving from a defensive posture to certainly one of strategic optimization and growth.
Methodology
The report is a follow-up to the initial November 2023 release and provides an updated snapshot of projected ad spend, opportunities, and challenges for 2024. It was designed to capture current perspectives from buy-side ad investment decision-makers at brands and agencies. The report is predicated on 200 responses to an email survey fielded between June and August of this yr. It may be found here (membership required).
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