The final totals on 2023 U.S. ad spending shows that more than three in five marketers increased spending in 2023 vs. 2022.
That’s according to Ad Age’s Leading National Advertisers report, which showed that 122 of the top 200 advertisers (61%) increased spending vs. the prior year. In addition, the report found, the top 200 bolstered advertising and marketing services spending by 2.5% in 2023 to hit a record $1 billion, while the remaining 78 advertisers cut spending. The median U.S. spending growth for the 200 advertisers was 4.1%.
Ad Age’s list of top advertisers for 2023 includes a number of brands familiar to radio. Among them: Procter & Gamble, which spent $6.1 billion on advertising last year, an increase of nearly 18%; JPMorgan Chase & Co. ($3.6 billion, +21.7%); Pfizer ($2.8 billion, +30.7%); McDonald’s ($2.1 billion, +9%); Bank of America ($1.7 billion, +5%); Progressive ($1.6 billion, -21.3%); Macy’s ($1.2 billion, -4.3%); and Discover Financial Services ($1.2 billion, +12.5%).
Aggregate U.S. ad spending for Leading National Advertisers was up in 11 of 16 categories last year, Ad Age says, with mainstay CPG categories like food and beverages (+16%); personal care (+13.9%); and household products (+11.8%) — showing the highest ad spending growth. Ad Age says there were 28 companies across those three categories last year, and estimated U.S. spending increase for 26 of the 28.
Meanwhile, U.S. ad spending declined in five categories last year: entertainment and media companies (-8.8%); technology marketers (-6.7%); and apparel and footwear (-6.3%). Toy marketing and financial services, meanwhile, saw modest declines.
Lending Tree cut ad and promotion spending by 39.5% — the sharpest cut among the top 200 advertisers. Meanwhile, spending for travel marketers (a total of nine made the list) climbed just 1.7% last year after big double-digit gains in 2022 and 2021.
While 122 of the top 200 advertisers increased spending, there were 78 who cut spending.
Median U.S. spending growth—the midpoint growth rate—for the 200 advertisers in 2023 was 4.1%.
Among the top 100 advertisers, 62 increased spending.
“Overall spending growth of 2.5% was far below the outsized ad spending gains for the top 200 of 8% in 2022 and 19.7% in 2021,” Ad Age says, “when the ad market was rebounding from the pandemic-induced downturn in 2020… The slim spending increase in 2023 mirrored a deceleration in revenue growth at agency holding companies.”
A total of 56 marketers in 2023 had total U.S. ad spend that topped $1 billion — including Amazon, which was again the biggest U.S. advertiser (for the fifth straight year) with an estimated ad and promotion spending total of $13.3 billion, down about 1%.
The list of the 10 biggest U.S. advertisers in 2023 is little changed from 2022, according to Ad Age, with the top six positions completely unchanged and the remainder of the top 10 returning in a slightly modified order.
Combined U.S. spending for the 33 internet-centric marketers in the top 200 — including everyone from Google parent Alphabet to online furniture retailer Wayfair — ticked just 0.3% higher in 2023 — trailing the 3% hike for the other 167 marketers.
“Tighter budgets at internet firms mark a turnabout from recent years, when spending growth in Leading National Advertisers reports for internet-centric ventures far exceeded spending growth at other marketers,” Ad Age says. “Budget shifts come as internet firms grapple with various issues including slowing revenue growth in maturing markets and challenges involving business disruption from artificial intelligence.”
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