Winterberry Group Research Finds US Advertising and Marketing Spend to Grow to Nearly $390 Billion in 2020, up More Than Seven Percent Over 2019
The Outlook for Data Driven Advertising & Marketing 2020 Sees “High Probability for Solid Growth”; Research Reviews the Trends Shaping the Landscape This Year
Winterberry Group, a specialist management consultancy that supports growth initiatives in advertising, marketing, media, information and technology, today released new research: “The Outlook for Data Driven Advertising & Marketing 2020.” The annual research led by Bruce Biegel, senior managing partner of Winterberry Group, provides the spending forecasts and reviews the trends that are driving U.S. advertising and marketing spend in 2020. It was unveiled at the DMCNY’s (Direct Marketing Club of New York) Industry Forecast luncheon this afternoon for the 11th straight year.
This year, Winterberry Group estimates advertisers will spend an estimated $389.5 billion, an increase of 7.2 percent over 2019 ($363.4 billion). More than 57 percent of the total spend (223.1 billion) is still expected to occur via offline channels (primarily linear TV, direct mail and experiential marketing). The growth in offline spend this year, which as a whole will rise 2.3 percent, is attributable to the presidential election in November and summer Olympics. Meanwhile, print, both magazine and newspaper, and radio will continue to experience declines.
Marketing Technology News: Manhattan Associates and Twilio Partner to Modernize Customer Engagement
Winterberry Group expects continued outperformance of digital channels, with spend to increase 14.5 percent to $166.4 billion. Emerging digital channels, including influencer marketing and digital video (OTT and streaming), are expected to grow at rates of more than 30 percent. Digital channels are maturing, according to the research, and social channels are close to reaching 25 percent of the total digital advertising and marketing spend in the U.S.
“There is a lot to be excited about in advertising and marketing. From the experience economy, to mobility, to influencer, to DTC, to video and advanced TV, the opportunities are right in front of us to reach targeted audiences in personalized and meaningful ways,” said Biegel. “While privacy is a pillar of concern, it is also driving demand for improved data management and analytics, which we expect to see grow at a healthy clip in 2020.”
Marketing Technology News: You & Mr Jones Joins Group of Investors Buying in to Award-Winning Ethical Brandtech Startup, Good-Loop
Winterberry Group’s 2020 Outlook delves into the complex data and data services segments including data, analytics, technology and integration which is forecast to grow to $23.2 billion, up 6.3 percent over 2019. The increase is led by the rise of data driven digital ad spend, the shift towards Customer Data Platforms and a focus on improving insights and decisioning. “While CCPA in 2020 is an overhang on the market, we currently expect its true impact on 3rd party data spend to be felt later in the year as marketers catch up to compliance demands,” Biegel added.
Marketing Technology News: NRF Vision 2020 Update: Channable Debuts in the US with New BigCommerce Integration