Wednesday, March 6, 2024

Forecast: Radio/Audio Ad Spend Expected To Increase 6.4% In 2024

Total global media spending is projected to grow at 7.7% in 2024, according to research by data and analysis group PQ Media.

This is ahead of most forecasts, including dentsu which expects global advertising spend to grow 4.6% to $US 752.8 billion in 2024 with media inflation driving the increase.

PQ Media says inflation and recession fears have subsided and a windfall of advertising is expected from political campaigns in 15 of the top 20 US markets, as well as record media spend related to the Paris Summer Olympics.

The global advertising sector grew 2.6% in 2023 to $732.89 billion, while the overall marketing sector expanded 5.1% to $897.69 billion.

Global digital & alternative media spending increased 10.4% to $824.46 billion in 2023, while traditional media spend fell 1.9% to $806.12 billion, according to PQ Media’s 11th annual Global Advertising & Marketing Spending Forecast 2024-2028.

According to PQ Media, total ad spend for radio/audio – including terrestrial/over-the-air, satellite, streaming audio stations and networks, and sponsored events and promotions – is expected to grow from $17.7 billion in 2023, when spend was up just 1.7% from the prior year, to $18.9 billion in 2024 for a 6.4% increase. With the overall U.S. ad spend up from $645 billion to $698 billion, radio/audio maintains a 2.7% share of the total.

Growth in the overall global and US markets was driven by double-digit expansion in 29 of 45 media channels tracked by PQ Media, led by smart tech marketing, streaming video, podcasting, digital out-of-home media, influencer marketing and experiential marketing.

The overall growth rates in the global and US markets in 2023 were the lowest since 2015, as inflation was at its highest rate in over 40 years, causing recessionary fears that led brands to slash media budgets across most platforms and channels, particularly in traditional media.

Inflation rates cooled as the year progressed and supply chain issues began to level, except for gas prices affected by the ongoing Russia/Ukraine war.

By December 2023, most brands were raising ad and marketing budgets in major global markets, except for Japan, as consumer confidence continued to rise, prompting heavy spending during the holiday season.

PQ Media CEO Patrick Quinn said early 2024 pacing data shows that brands continue to increase their budgets, as more consumers are shopping at brick and-mortar stores.

“If the 2024 Super Bowl audience is an indication of consumer viewing habits, we believe brands will spend top dollar to be included in the over-the-air, digital and streaming coverage of the Paris Summer Olympics as well," Quinn said.

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