Volume 8 No. 1: What does ad spend look like for 2023?
Gaining consumer confidence is extremely important for a brand’s long-term ROI. And as economic uncertainty makes gaining that confidence more challenging, it’s essential brands stay present through strategic marketing efforts.
But brands too are wondering “What will happen next year?” And they’re beginning to reassess their ad spend.
Where are brands spending in 2023?
Each week, we break down another marketing trend so you can skip having a breakdown.
According to a WARC study, marketing growth in 2022 achieved an 8.3% increase, but is predicted to fall to 2.6% in 2023. Brands are preparing for the potential recession by holding back on ad spending.
But there are benefits in the long run if you maintain your ad spend.
- Maintain share of voice. 38% of brands that continued advertising during a recession increased their impressions and experienced large profit growth.
- Not all channels are declining. AVOD is expected to increase by +7.6% next year (+8.0% this year) for companies like Hulu, Amazon Prime Video, and soon, Disney+ and Netflix.
- Launching TV campaigns is a perfect way to catapult growth and spread brand awareness on a trusted platform.
Key Takeaway: Your competitors will have a difficult time bringing their brand back to consumers’ attention if they decide to cut ad spend. Make your brand prominent and trusted amid the uncertainty.
The Growth Lab
Question: What's most exciting about creating something new?
We ask an experienced group of business leaders, marketers and statisticians about strategies for success.
Answer: "First, the sense of accomplishment a team feels when bringing a new idea to the market. It takes such a relentless effort. Second, the positive reaction of consumers when they experience it the first time. Seeing the joy on people’s faces while visiting a unique restaurant concept I helped launch recently was so validating."
— Tom Jump, Head of Corporate Development & Innovation
Tom has a passion for innovation and brings an entrepreneurial spirit to MA. During his free time, you can find him golfing or working on his next project at the family cabin.
Read: Marketing Lessons from the Grateful Dead
Here we celebrate books, podcasts, videos, and influencers that are actively pushing marketing into the future.
Who knew that iconic rock bands use marketing tactics that can be applied to your business? The book Marketing Lessons from the Grateful Dead, written by David Meerman Scott and Brian Halligan, provides key innovations from the Grateful Dead’s marketing approach that are used in today’s business world. Their idea is “cutting out the middleman” and marketing straight to their fans, or in other words, inbound marketing.
Our favorite insight? The Grateful Dead built their community through newsletter marketing using a mailing list (long before the Internet).
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