Optimistic marketers increase expected ad spend

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. 

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Source: IAB “The 2024 Outlook Study: August Update.”

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. 

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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. 

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Source: IAB “The 2024 Outlook Study: August Update.”

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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About the author

Constantine von Hoffman

Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.

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