Advertiser Confidence Up: Agencies & Marketers Set to Increase Ad Spend in 2025

Advertiser Confidence Up: Agencies & Marketers Set to Increase Ad Spend in 2025

marketers Embracing Audio and optimistic About 2025

A recent survey by market intelligence researcher Advertiser ‌Perceptions reveals a surge in⁣ confidence among marketers regarding the economy and a renewed willingness to invest in‍ advertising, including a notable increase in spending on radio and‍ all forms of audio media.

The survey, conducted between January 2nd and 10th, 2025, polled 300 executives from media agencies and brand marketers who are responsible for making media brand selection decisions and plan‌ to spend at least $1⁣ million on advertising over the next year. The‌ findings suggest that a meaningful shift is ‍underway in audio advertising,​ with marketers recognizing​ its growing cultural relevance and potential for‍ impactful reach.

Increased Audio Investment

Key findings from the survey highlight a ample increase in the percentage of executives anticipating an increase in ad spend on AM/FM radio over the next​ six months. This figure has grown by 77% compared to three years ago, standing in stark contrast to the 19% increase ⁢projected for podcasts and a mere ⁤15% for audio streaming.

“The growing cultural importance of podcasts has the⁤ potential to lift advertiser investment in all forms of audio advertising. Audio investment has‌ been held back by budgetary constraints and an over-emphasis on lower funnel formats,” says Eric Haggstrom, VP of Business Intelligence and head of forecasting at ⁤Advertiser Perceptions, ⁣in a recent blog post on Westwood One’s website. “Thes pressures should ease in 2025.”

Correlation Between Spending and Audio Focus

The survey also ⁢reveals a strong correlation ​between a brand’s overall advertising budget⁤ and its willingness to invest in audio.Marketers spending $25,000 or more are substantially more‌ likely to​ increase their spending on AM/FM radio,podcasts,and audio streaming in 2025 compared to those with smaller budgets.

Economic Optimism Drives Growth

Adding to the positive outlook, nearly half ⁣of the ‍marketers ‌surveyed ⁤(47%) expect⁤ the US economy to grow in the coming 12 months, a figure⁢ that has more than ‍doubled from⁢ 23% just two years ago. This optimism is especially pronounced ​among larger brands, with ‍58% of those spending $25,000 ‍or more anticipating economic growth, compared to 40% of smaller brands.

“While increased tariffs⁢ on imported goods and regulatory uncertainty remain ‍potential headwinds to the economy,‌ advertisers are ⁤feeling bullish about the economy,” says Haggstrom. “Barring those issues, expect advertisers to increase budgets this year.”

Recession fears Ebb

The decline in recession ‍fears is another contributing factor to the current marketing climate.Google searches for the term “recession” have plummeted ‍by 90% since⁣ their peak in June 2022. “in 2022, ​the vast majority of economists and businesses⁢ expected a recession,” notes pierre Bouvard, chief Insights Officer at Cumulus Media/Westwood One audio ‌Active Group. “These fears carried over into‌ 2023 and 2024. These alarming forecasts caused ⁢national marketers to reduce and hold back ad budgets.”

Impact of GDP ‌on ad​ Budgets

The survey also highlights the profound impact of⁤ US GDP growth on advertising budgets. More than​ half (51%) of the respondents ⁣indicate that they will factor in the US​ GDP when making their⁣ ad ⁣budgeting decisions over the next 12 months, a significant increase compared to previous years.

Boost in New Product Launches

Adding to the positive sentiment, the survey reveals a surge in new ⁤product launches. Three out of every four marketers plan to introduce new products‌ in 2025, marking a sharp rise from the 54% low recorded in 2022. This⁤ anticipated wave of ​new products further underscores the economic optimism and the confidence of marketers‍ to invest in growth.

conclusion

The​ data paints a clear picture of a marketplace⁤ invigorated by ⁢a sense of optimism and a⁣ renewed commitment to advertising, ‍particularly in the realm of audio. Marketers, fueled ​by a positive economic outlook and a desire to connect with consumers in increasingly engaging ways, are poised to make 2025 a year of significant growth and innovation.By embracing the dynamic potential of audio advertising, marketers can unlock new⁣ opportunities to reach and ‌resonate with their target audiences.

With a growing economy and a desire ⁢to reach consumers‌ in engaging ways, how do you foresee this impacting audio ⁤advertising spend in teh coming months?

Archyde Interviews Audio ⁢Industry Expert on ‍Rising Ad Spend Trends

The audio advertising landscape is buzzing with activity as marketers rediscover the power of sound. A recent ‌survey by ⁣Advertiser Perceptions reveals ​a surge in confidence among marketers, leading to a renewed ⁢willingness to invest in advertising, including a notable‌ increase in spending on radio and all forms of​ audio ​media. To delve deeper into ⁢this‌ trend,we spoke with Amelia Green,Chief Strategy ​Officer at Resonate⁢ Audio,a leading ​audio ⁢advertising agency.

Audio’s Comeback: A Shift in Spending Priorities

Archyde: Amelia, Advertiser⁢ Perceptions’ latest survey shows a significant increase ‌in projected ad spend on ⁤AM/FM radio compared to ⁢podcasts ​and​ audio streaming.What factors do you ​think are​ driving this shift?

Amelia ‌Green: It’s definitely an intriguing development. I ‌think several ⁢factors are at play. Firstly, AM/FM⁤ radio enjoys a⁣ massive ‌reach and frequency, particularly among ⁢core demographics. Marketers are recognizing its potential to cut through the clutter and deliver impactful ‌messaging⁣ to wide‌ audiences. Plus, with advancements in digital audio⁤ technologies, radio is seamlessly⁣ integrating with online platforms, creating a more targeted and⁣ interactive experience for listeners.

The Budget Connection: Spending Big on Sound

Archyde: The ‍survey ‍also highlights a strong correlation between ‌overall advertising budgets and willingness to‌ invest in audio across various formats. Do ‌you see this trend continuing?

Amelia⁣ Green: ‍ absolutely. When budgets are robust, brands​ are more willing to experiment and explore innovative advertising channels. ‌audio​ fits ⁣perfectly into this strategy. Its versatility allows for creative storytelling, sponsorship opportunities, and​ targeted messaging​ across different platforms. As ‍brands continue to invest in complete marketing⁢ strategies,audio will⁢ undoubtedly play a central role.

A Bouncing Economy​ Fuels ‍Optimism

Archyde: With a renewed economic optimism and reduced recession fears, how do you foresee this impacting audio advertising spend in the coming months?

Amelia Green: ​ I’m‍ incredibly optimistic.‌ With a growing ⁢economy and a desire to reach consumers⁤ in engaging ways, we’ll likely see a surge in audio‌ advertising investments throughout 2025.Brands want to be where their‌ audiences are, and that increasingly means within the auditory ​realm.

Archyde: ⁣ What advice would you give to marketers who are considering incorporating‍ audio ‍into their marketing strategies?

Amelia ​Green: My advice is ⁤simple: Don’t⁣ underestimate the power of sound! ⁢Audio offers a powerful and immersive way to connect with⁤ audiences.Whether through radio, podcasts, or audio streaming, embrace the creativity and explore the possibilities of audio storytelling. The results can be ⁢truly impactful.

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