ππ Conflicting Indicators: Ad Spend v. Business Starts
There has been a lot of hand wringing about how ad budgets will trend this year.
And digital has had it's own conflicting indicators with spend being down in November but spend on social media increased in Q4 as a whole, despite all the doom and gloom. (Which makes sense, thatβs where the eyes are.)
The consensus seems to be: things will be relatively flat or grow a little bit overall. (And CTV will be the trend line savior, as screens shift.)
But businesses are starting up like crazy.
I assume at least some of them will need to reach customers, and might even spend money to do so.
So if few businesses are planning to cutback on their marketing spend and a bunch of new businesses are starting up, why is ad revenue / spend forecast to only grow by a small amount (if at all)?
The chart is from Scott Galloway's newsletter and is also featured in his book of charts.