Growing economy has ad buyers increasing their 2024 ad spend projections to 11.8%, up significantly from last year.
Buyers increased their 2024 ad spend projections to +11.8%, up from +9.5% projected at the end of last year, according to a 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 remains a top priority, especially for large advertisers with annual spends exceeding $ 50 million.
One of the most notable trends highlighted in the report is the continued ascent of retail media. Buyers have revised their year-over-year projections for this channel from +21.8% to an impressive +25.1%. This surge in retail media investment underscores its growing importance in the marketing mix.
Meanwhile, buyers are maintaining their focus on cross-funnel KPIs while shifting efforts towards reach optimization as interest in new KPIs wanes. The study also reveals that measurement challenges persist for the industry, even as economic concerns subside.
Interestingly, the report notes that goals can vary by channel. For instance, IAB’s latest Digital Video report found that within digital video, buyers are determining success via business outcomes such as sales and store/website visits.
The decline in focus on new ad KPIs suggests a renewed interest in refining and leveraging established metrics to achieve 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 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 based on 200 responses to an email survey fielded between June and August of this year. It can be found here (membership required).
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