Advertisers in the UK, France, Germany, Japan and Brazil express optimism for 2024 ad spending as Q4 progresses Many advertisers in countries around the world are still feeling negative impacts from several economic headwinds, especially inflation rates, but those in markets studied in our Global Macroeconomic Effects & Perceptions research are more optimistic about their 2024 ad spending as we head into Q4 than they were earlier in 2023.
Two-thirds of advertisers surveyed in September in Germany and the UK reported experiencing negative effects from inflation rates, while about half in Brazil, France, Japan, and the UK said the same. Inflation was more likely to be a problem in all markets than interest rates, energy prices, or supply chain issues, with energy supply the No. 2 issue in the European markets, which have seen the most problems in this area due to the war in Ukraine as well as due to environmental and sustainability regulations.
Despite these headwinds, at least two in three advertisers surveyed in the markets outside the US said that business climate in Q3 had been at least generally favorable to them, and most expected improvement in the business climate during Q4.
This optimism, as advertisers look toward Q4 and the holiday season, translated to an increase in the share of advertisers expecting to spend more this year than they did in 2023. In Brazil, two-thirds of advertisers expect to do so, up 9 points since Q2. In France, 46% now plan to increase spending, vs. 36% who said the same in Q2. In Germany, the share was up 21 points to 58%, a statistically significant increase. Similarly, in Japan, the share was up 17 points to 56%, also statistically significant. The UK also saw a significant jump in the share of advertisers who will spend more this year, up from 39% in Q2 to 55% as of September.
Holiday spend in particular should be strong in these markets, with more than two-thirds in Brazil and about half in France, Germany, Japan and the UK planning to spend more during the period than they did in 2023.
Social media platforms are the most likely recipients of these increased budgets in all the markets we study, with about two-thirds of advertisers in Europe and three-quarters of those in Brazil and Japan planning to spend more on these platforms. Increases in general search, mobile in-app, and retail media spending are also planned by majorities across the international markets studied. About half of advertisers in these markets also plan to spend more on connected TV this year. Above all other factors, advertisers will be guided in their budget allocations by potential partners’ ability to reach their target audiences, with one in five or more advertisers in each market saying it’s the single most important aspect of their decision-making.