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Advertising Industry: Difference between revisions
→Advertising behavior during a recession
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== Advertising behavior during a recession == | == Advertising behavior during a recession == | ||
As economic downturn looms in 2023, the advertising industry is faced with uncertainty. According to a survey conducted among global brands, nearly 75 percent of the respondents agreed that signals of an economic downturn in 2023 influence their media budget decisions. Four out of 10 surveyed multinationals plan to maintain their advertising expenditures at the same level as in 2022, and roughly 30 percent intend to cut their media budget. <ref>https://www.statista.com/topics/10084/advertising-in-times-of-crisis/#dossierKeyfigures</ref> | As the economic downturn looms in 2023, the advertising industry is faced with uncertainty. According to a survey conducted among global brands, nearly 75 percent of the respondents agreed that signals of an economic downturn in 2023 influence their media budget decisions. Four out of 10 surveyed multinationals plan to maintain their advertising expenditures at the same level as in 2022, and roughly 30 percent intend to cut their media budget. <ref>https://www.statista.com/topics/10084/advertising-in-times-of-crisis/#dossierKeyfigures</ref> | ||
Looking back at the 3 last recessions<ref>https://www.statista.com/statistics/272443/growth-of-advertising-spending-worldwide/</ref>, it is clear ad budgets get cut during economic contractions, but the magnitude of the decline can vary depending on the severity of the recession, the specific industries and companies involved, and their advertising strategy. | |||
Important to note that the advertising industry could recover quickly after crises, often reaching or even exceeding prior spending levels within one to two years post-economic downturn. | |||
* COVID-19 pandemic resulted in a 3.7 percent decrease in ad spending in 2020 compared to 2019. | * COVID-19 pandemic resulted in a 3.7 percent decrease in ad spending in 2020 compared to 2019. | ||
* During the Great Financial Crisis, advertising spending experienced a decrease of 9.5% in 2009 | * During the Great Financial Crisis, advertising spending experienced a decrease of 9.5% in 2009 | ||
* During the Dot Com crisis, advertising spending saw a decrease of 4.04% in 2001 | * During the Dot Com crisis, advertising spending saw a decrease of 4.04% in 2001 | ||
{| class="wikitable" | |||
|'''Year''' | |||
|'''Ad spending in million U.S. dollars''' | |||
|'''Growth Rate''' | |||
|- | |||
|2024* | |||
|884,999 | |||
|7.57% | |||
|- | |||
|2023* | |||
|822,756 | |||
|5.36% | |||
|- | |||
|2022* | |||
|780,870 | |||
|8.03% | |||
|- | |||
|2021 | |||
|722,843 | |||
|16.00% | |||
|- | |||
|2020 | |||
|623,116 | |||
| -3.70% | |||
|- | |||
|2019 | |||
|647,035 | |||
|5.43% | |||
|- | |||
|2018 | |||
|613,721 | |||
|6.80% | |||
|- | |||
|2017 | |||
|574,640 | |||
|6.08% | |||
|- | |||
|2016 | |||
|541,698 | |||
|5.53% | |||
|- | |||
|2015 | |||
|513,304 | |||
|4.60% | |||
|- | |||
|2014 | |||
|490,713 | |||
|5.61% | |||
|- | |||
|2013 | |||
|464,668 | |||
|4.87% | |||
|- | |||
|2012 | |||
|443,077 | |||
|4.34% | |||
|- | |||
|2011 | |||
|424,666 | |||
|3.92% | |||
|- | |||
|2010 | |||
|408,663 | |||
|7.82% | |||
|- | |||
|2009 | |||
|379,036 | |||
| -9.50% | |||
|- | |||
|2008 | |||
|418,828 | |||
| -0.12% | |||
|- | |||
|2007 | |||
|419,319 | |||
|5.60% | |||
|- | |||
|2006 | |||
|397,088 | |||
|6.56% | |||
|- | |||
|2005 | |||
|372,646 | |||
|5.22% | |||
|- | |||
|2004 | |||
|354,171 | |||
|6.61% | |||
|- | |||
|2003 | |||
|332,198 | |||
|3.01% | |||
|- | |||
|2002 | |||
|322,505 | |||
|0.10% | |||
|- | |||
|2001 | |||
|322,182 | |||
| -4.04% | |||
|- | |||
|2000 | |||
|335,733 | |||
| | |||
|} | |||
== References == | == References == | ||