Exclusive release on Business Insider, read full article here.
World Federation of Advertisers (WFA) and Ebiquity, announced today the results of their annual media budget survey. The leading global trade body and the world leader in media investment analysis have surveyed 92 brand advertisers, representing over $50bn in global ad spend, based on COMvergence data. 4 of the top 10 global brand advertisers have participated.
Key insights are summarized below:
- 60% of respondents plan to increase their global media budgets in 2024, which represents a significant increase compared to last year, when only 29% of participating brands planned an increase for 2023.
- 35% of brands plan to increase their share of brand advertising vs performance advertising. This is a major priority shift, especially considering results from last year when more brands were planning to increase their performance advertising.
- We find a significant return to upfront commitments / guaranteed deal making for 2024, with 16% of respondents planning to increase their upfront commitments (up from 9% last in last year’s survey).
- More than half (56%) of respondents plan to decrease their investments in Linear TV, a clear continuation of the trend as this number was 59% in our last year’s survey.
- In turn, 85% of respondents plan to increase their investments in Connected / Advanced TV. Digital Video is a close runner-up in terms of expected channel growth, with 83% of respondents planning to increase their investments.
- The uncertain economic climate is having a major impact on 2024 decision-making, as 74% of respondents either Agree or Strongly Agree that their decisions are directly influenced by market conditions.
- For the first time this year, we include a series of industry issues based on WFA’s Global Media Charter to gauge if, and to what extent, brands are prioritizing these. This includes reliance on big tech, diversity and inclusion, sustainability of media and brand safety – amongst some other topics. Have a look, we feel this is very interesting data.
Once again this annual survey of major advertisers reveals fascinating insights into future investment intentions. With 60% of respondents planning to increase advertising budgets we see a level of confidence that seems contradictory to the prevailing economic outlook. This is supported by 35% saying they will increase share of branding investments versus performance, a significant shift from this time last year, and a rise in those confirming an increase in the share of up-front commitments. With advertising typically seen as a two-quarter leading indicator of the wider economy does this signify a recovery coming in mid-2024?
Nick Waters, CEO Ebiquity
There is some cautious optimism returning to media spending and, predictably, the money is flowing towards digital. However, to enable longer-term digital market growth we have to fix key issues of quality, transparency, responsibility, measurement and, importantly, sustainability. We call on the industry to rally around the steps outlined in the WFA’s new Media Charter. Fix the fundamentals to unlock growth
Stephan Loerke, CEO of WFA
Press Coverage:
Videoweek – Global Budgets Set to Swing Towards Video and CTV in 2024
Investors’ Chronicle – Media budgets are showing signs of life
