Video advertising (6.14%), Investment in Marketing Technologies (6.07%), and Multicultural Marketing (5.63%) are the three marketing growth investment categories that brand marketers in the Portada network expect to grow the most over the next 12 months.
Marketing Growth: Expected Development in 11 Different Investment Categories
NOTE: Brand marketers and media buying agencies in the Portada network expect overall marketing expenses to grow over the next 12 months by 4.24%. Over 150 marketers were asked to assign growth expectations to eleven different marketing and advertising categories during the October 2023 – January 2024 period.
Video
The increasing substitution of linear TV buys for digital video (partly due to the increased targeting abilities of the latter) is currently driving digital video’s high growth rate. The relative strength of the video advertising categories in the Portada survey is in line with Magna, IPG’s marketing growth forecast unit, which, in late March, announced that it expects U.S. ad revenues to increase by 6.7% in 2024 to US $360 billion, excluding cyclical spending. According to Magna, streaming (video) advertising will be the main growth driver. (Adding political campaigns and international sporting events like the Olympics, US ad revenues are set to increase by 9.2%.). According to the S&P Global Ratings 2024 forecast we reported earlier this year, digital video will be the fastest-expanding ad category because it benefits from the continued shift to digital video consumption, connected TV, and better demographic targeting provided by video-on-demand viewing.
MarTech
Marketing budget decision-makers in the Portada network continue to expect growth and expansion of investments in Marketing Technologies (MarTech) over the next 12 months. Corporations continue to embrace MarTech, which they use to achieve objectives such as improving first-party data access, increasing the execution of omnichannel marketing and attribution systems, or using e-commerce marketing tools.
Multicultural Advertising and Marketing
Multicultural advertising and marketing, as Portada has reported and estimated in the Insights Report: “Marketing in Multicultural America: 2023-2027 has grown at a high rate since the pandemic, mainly as Corporate America seems to finally realize the importance of advertising to diverse targeted audiences, due to different social factors including the Black Lives Matter movement. This trend was initially reflected in substantial growth in advertising targeting the African American population, which has since been passed on to other sectors of an increasingly multicultural America (Hispanic, Asian American, etc.). Multicultural GenZ consumers are not only the majority in many markets but also significant influencers on the taste and consumption habits of the overall population. A recent Horowitz Research consumer survey shows that 81 percent of Gen Xers and 72 percent of millennials say that multicultural and varied consumers significantly impact their brand choices; surprisingly, 48 percent of Gen Xers and 32 percent of boomers report the same.
81 percent of Gen Zers – the most diverse generation in history – and 72 percent of Millennials say that multicultural and varied consumers have a significant impact on their brand choices, and 48 percent of Gen Xers, and 32 percent of Boomers report the same.
Yet there are still significant obstacles to growing marketing for diverse audiences. One area where there is still much room for improvement is programmatic advertising, as we recently pointed out in our article: Do DSPs have racist behavior?
