Let’s see what this week’s numbers say about online advertising, shall we?
- CMOs are strong believers in creativity, according to the latest annual report from Dentsu Creative. In fact, 81% of CMOs surveyed around the world believe that creativity is more important to marketing than ever, 83% feel that creativity has more potential than ever to unlock business growth, and 89% agree that creativity is the ultimate force that drives business growth and solves business problems. This is good news for agencies: brands value creative help from agencies more than any other priority.
- Retail media networks (RMNs) have surged in number and spend in recent years and are forecast for continued growth, to the tune of reaching almost one-fifth of US online ad spending in the next few years. To gauge trends in this sector, the ANA has released a report looking at marketers’ adoption of these networks. Six in 10 of the 144 ANA marketers surveyed report having used RMNs in the past year, up only slightly from 58% in a similar survey conducted last year. The report points out that consistent with that lack of change is the finding that among marketers not currently using RMNs, 87% have no plans or are unsure about using RMNs in the future, on par with last year’s results (90%). It’s worth noting that although the number of RMNs used on average has also stayed fairly steady, there has been an increase in the share who report of respondents using 10 or more (22%, up from 16%).
- As more TV viewers watch free streaming services with ads, their preference for lower-cost subscriptions with ads rather than ad-free streaming is growing. So finds Hub Entertainment Research in its latest analysis of the topic. The survey asked TV viewers which statement comes closest to how they feel about ads: “If watching ads will save $4-$5 vs. watching ad-free, I’ll choose that option”; or “If there’s an ad-free option, I’ll choose it even if it costs $4-$5 more per month.” About two-thirds (66%) went with the former option (saving money) versus the remaining 34% who would prefer to avoid ads. That 66% share preferring to save money is the highest figure in the biannual survey results dating back to June 2021, besting the previous high set 6 months earlier, in December 2023.
- PwC has released its latest annual Global Entertainment & Media Outlook report, a comprehensive study that contains projections for online and offline media advertising markets through 2028. After the ad business was predicted to have continued expansion last year, this year’s report forecasts continued growth of the ad market, with global ad revenues growing at a compound annual rate of 6.7% through 2028. US digital advertising continues to grow at a healthy pace, though it has slowed of late: last year, the 7.3% year-over-year climb was down from the 10.8% year-over-year rise in 2022, which itself was down from the accelerated growth rate of 35.4% in 2021. Nonetheless, PwC forecasts that online advertising spending will rebound this year and jump to $252.8 billion, representing a 12.4% increase.
