Total marketing communications and advertising investments will decline more than $50 billion annually between 2019 and 2025, from $589.8 billion to $538.3 billion, according to The Myers Report's new Marketing & Media Economic Data and Forecast 2000–2025. Yet advertising's share will grow a projected 7.9%, from $214.5 billion in 2019 to $231.4 billion in 2025.
Marketers are continuing to shift budgets from below-the-line, bottom-funnel promotion to above-the-line, traditionally top-of-funnel advertising, driving down promotional spend from $375.3 billion in 2019 to a projected $306.9 billion in 2025, an 18.2% decline. On the surface, this appears to be good news for the ad community, but the shift is being driven by two dynamics that are not positive.
Media advertising, and the agencies that manage it, have become a friendly haven for efficiency-driven corporate cost-cutting. Corporate programmatic in-housing also offers marketers greater control over media, technology, and human costs, accelerating a shift to impressions-based automated transactions. Media revenue growth will continue to be driven by downward cost-per-thousand pressure as media buying becomes more data-driven, impressions focused, and digitally centric.
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