Macroeconomic pressures have had a significant impact on advertiser budgets over the past few years, leading to less spend and smaller budgets. Our Macroeconomic Report in February 2023 found that 43% of marketers and agency executives said that supply chain disruptions had a major or slight impact on their business, with 53% saying the same of elevated inflation rates and 43% of rising interest. Now, as these factors have dissipated, advertisers are eager to spend again, as a third of advertisers expect to spend more in 2023 as macroeconomic pressures ease.
Specifically, advertisers are looking to shift their budgets to higher-performing media so they can maximize their ad spend. Fifty-nine percent of advertisers report shifting budgets into high-performing media to maximize return on investment (ROI), while 55% report shifting budgets out of underperforming media. When it comes to what media is delivering that for them: 42% said they were reallocating dollars to social media, while 36% were reallocating dollars to CTV. Agency executives were more likely than marketers to increase CTV, video, and linear TV spending.
As advertisers plan out their budgets for the rest of the year, they would be smart to identify their best performing channels and allocate their spend there so that they can maximize their ROI. This can be accomplished by utilizing tools that analyze long-term performance or forecast future performance. These tools often use data-driven models to help advertisers determine where they can maximize their budgets and get the highest return on their investment.
It’s hard to predict how the economy and other macroeconomic factors will impact advertisers, but using tools that help brands better understand the impact of their marketing mix and identify their high-performing channels will help ensure that whatever dollars are being spent are being maximized.
Nicole Perrin is SVP Business Intelligence at Advertiser Perceptions
