61% of Marketers Express Optimism for 2024 Business Growth Despite Economic Worries

61%     

Despite economic concerns, 61% of marketers are optimistic about business improvement in 2024, as indicated by recent WARC research. Projected to surpass $1 trillion for the first time, global marketing investment is set to increase by 8.2% in 2024, with a significant shift towards digital channels.  TikTok and YouTube are poised for significant investment increases, while 31% plan to reduce spending on X (formerly Twitter).  

$82.1 B  

In response to the surging costs of returns, 44% of retailers have hiked up return or restocking fees, according to findings from CBRE and Optoro. The upcoming holiday season's expected boost in e-commerce sales might lead consumers to generate as much as $82.1 billion in returns, as outlined in a recent study by CBRE and Optoro. The report also discloses that nearly nine out of ten retailers have revamped their return policies, with 44% increasing fees, and 40% introducing additional return drop-off locations. Optoro's assessment indicates a 50% surge in return expenses, totaling $149 billion since 2018, with return costs averaging 27% of the purchase price and posing a potential threat to erasing up to half of a product's sales margin. 

3/4  

A Forrester report suggests that, amidst retailers' investments in order fulfillment, certain services may offer more value than others. Same-day and next-day delivery, although costly to implement, are not strongly desired by most shoppers, with only a fifth of U.S. online consumers considering them as critical factors in choosing a retailer. Free shipping remains a top priority for three-fourths of U.S. online consumers, while nearly half express that the option for same-day delivery has no impact on their choice of retailer or brand. Additionally, despite the potential fit for fast delivery, 47% of U.S. consumers prefer in-store grocery shopping to physically assess products before purchasing. 

6.3%  

As consumers nationwide strategically trim streaming expenses, defections across premium streaming services increased to 6.3% in November, up from 5.1% a year earlier. About 25% of U.S. subscribers to major streaming platforms have canceled at least three services over the past two years, highlighting a growing trend of streaming users being more selective. 

3.1%

During the holiday season, U.S. consumer spending surged by 3.1%, reflecting robust activity despite inflation. Mastercard SpendingPulse reported a 6.3% increase in online retail sales and a 2.2% rise in in-store sales from Nov. 1 to Dec. 24, with the last-minute rush, particularly on Dec. 23, potentially surpassing Black Friday in sales. While some sectors like electronics and jewelry faced declines, restaurants experienced significant growth, indicating a preference for dining out amid higher menu prices. 

12.4%  

In 2023, the U.S. auto industry experienced a significant rebound, with several companies reporting double-digit sales growth, reaching 15.5 million vehicles, a 12.4% increase from the previous year. Despite a brief United Auto Workers strike and a slower rise in electric-vehicle sales, pent-up demand and improved dealership lot availability contributed to the industry's momentum. 

7.1%  

In 2023, Ford Motor reported a 7.1% sales increase to nearly 2 million vehicles, marking its best sales since 2020 but falling behind the overall industry's growth. Despite challenges like a labor strike and supply issues, Ford's F-Series remained America's best-selling vehicle, despite Ford's overall 2023 sales were slightly lower than the industry's total, which reached over 15.6 million vehicles.