In 2024, U.S. Marketing Spending is Forecasted to Surge by 10.7% to $570 billion, More Than Double the 2023 Growth Rate

10.7%    

U.S. spending on marketing and advertising is projected to grow by 10.7% in 2024, reaching $570 billion, a growth rate over double that of 2023. Investments in political advertising, connected TV, and connected commerce, along with experiments in alternatives to cookies, such as first-party identity solutions, will drive the industry's growth, with a focus on generative artificial intelligence and machine learning. Consumer preferences remain uncertain amidst these trends. 

50%  

50% of executives planning investments in artificial intelligence tools for marketing (56%) and financial forecasting (52%). The survey, sponsored by Carl Marks Advisors, reveals that 34.4% plan AI investments in customer service, 39.2% in user experience, and 34.4% in supply chain management. Executives surveyed represent companies generating $25 million to $300 million in revenue, with almost 40% expecting sales growth in 2024, contrasting with half expecting sales to remain unchanged from the previous year. 

5.4%         

TikTok experienced a decline in user growth as it delved into ecommerce, with monthly active user growth dropping from 12% YoY in 2022 to 3% YoY in 2023, according to Sensor Tower data. Despite a more modest forecast showing growth slowing from 10.2% YoY in 2022 to 5.4% this year, TikTok's transition into ecommerce, marked by the introduction of TikTok Shop in 2022 and its official launch in September 2023, played a role in this deceleration, signaling a shift from the rapid growth observed in 2020 and 2021. 

72.2 %

Among all social media platforms, Instagram leads as the preferred platform for direct messages (DMs), with nearly three-quarters or 72.2 % of users having sent DMs in the past month, Snapchat ranking as the second most popular DM platform among Gen Z, is preferred by over 40% of teens, while Facebook Messenger is more popular among Gen Z adults (22.5%) compared to teens (2.6%), while TikTok lags behind as only 3.7%. 

$400B    

With an estimated of 4.9 billion social media users globally and over 90% of marketers leveraging the platform, the social media ad industry has become a major revenue driver, with a cumulative spending of $930 billion since 2017, reaching an astonishing $207 billion in the past year alone. In 2024, Statista projects that The United States leads the global social media advertising market, surpassing top competitors with $340bn spent by US brands since 2017, projected to reach over $400bn in seven years.  

30%  

ASML, a key player in semiconductor equipment, exceeded expectations with net sales of 7.2 billion euros ($7.82 billion), a 30% YoY increase from 2022. Despite beating estimates, the company projects 2024 revenue to mirror that of 2023, emphasizing a conservative outlook but anticipates significant growth in 2025. 

12.5%    

Netflix contemplated making its ad-supported tier the default option as Amazon, but opted against imposing such a change on subscribers, according to Co-CEO Greg Peters. Netflix's advertising segment exhibited a robust 70% quarter-over-quarter growth in Q4, contributing to the addition of 8 million monthly active users (MAUs) and reaching a total of 23 million MAUs, while the overall company revenue surpassed analyst estimates, rising 12.5% YOY to $8.83 billion.