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Who spends the most on ads? US, Asia, and Europe compared 

March 27, 2024
in Business
Who spends the most on ads? US, Asia, and Europe compared 
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Advertising worldwide is booming, with a whopping $5 trillion spent in just five years! From TV and radio to social media and online videos, ads are everywhere, reaching consumers in new ways. 

Looking ahead to 2024, spending is set to hit a record $1.83 trillion, with the US leading the charge. Over 40% of this year’s spending, nearly $420 billion, comes from the US alone. Why do US brands spend so much on ads? Well, big companies like Google, Amazon, and Disney want to make sure you know about their products. They splash out on ads to grab your attention and make you want to buy. Most of the money goes on search and TV ads in the US.

These old-school methods are still super important, even though we spend a lot of time online. Comparatively, Asian ad spending is on the rise, with market share increasing by over 3% since 2018, while Europe’s share has declined. Despite this growth, the US remains the primary driver of global ad spending, accounting for over a third of the total.

In just five years, brands and marketers worldwide have spent more than a shocking $5 trillion on advertising, including all forms of digital ads, social media channels, search advertising, and TV, video, and radio ads. In 2024, total ad spending is expected to hit an all-time high of $1.83 trillion, and most of that value will come from the US market. According to data presented by OnlyAccounts.io, more than 40% of total ad spending in 2024, or close to $420 billion, will come from the United States.

US Brands Will Spend 15% more on Ads than Asian and Twice more than European Companies As a home to some of the world’s biggest brands, corporations, and companies, the United States has always had a lion’s share in global ad spending. Last year, Google, Amazon, and Facebook alone generated more than 60% of global digital advertising revenue. 

However, other US giants like Walt Disney and Coca-Cola also spend eye-popping figures on advertising, helping the United States to lead the global chart of the biggest ad spenders. Moreover, the difference between the total ad spending in the United States and other top markets is huge.

According to Statista Market Insights, US brands and companies are expected to spend roughly $420 billion on advertising this year, $25 billion more than last year. More than half of that value will come from search and TV and video ads, the two largest revenue streams in the US advertising industry. And while $420 billion is shocking, this figure is even more impressive when compared to total ad spending in other regions. According to Statista, Americans alone will spend 15% more on advertising than brands and companies from all over Asia. 

Total ad spending in this region is forecasted to hit $363 billion this year. Statistics show the difference between the US and European markets is even bigger. European brands and companies will spend close to $200 billion on advertising in 2024, almost twice less than their US counterparts.

The United States is the Biggest Spender, but Asia is the Fastest Growing Advertising Industry While most of the total ad spending will come from the United States, the Asian advertising industry has seen the biggest growth in the past years. In 2018, US brands spent $252 billion on advertising, making up 37.5% of the world’s total that year. 

Since then, the US market share has increased by 1% to 38.6% in 2024. Asian market share has grown by more than 3% in this period. Statista data show Asian companies will generate 33.7% of the total ad spending in 2024, up from 30.6% five years ago. On the other hand, Europe saw its market share drop during this period. Back in 2028, European companies made 21.4% of the total ad spending. Since then, this figure has dropped to 18.4%

SMBs report that diverse digital advertising providers and platforms compete fiercely for their advertising dollars. Industry leaders Google (including YouTube) and Meta (Facebook, Instagram) are the most popular, but Amazon, Microsoft, TikTok, and Twitter are among several strong competitors (see graph below). These data from SMBs mirror broader independently reported advertising industry trends that show Google and Meta losing market share to TikTok and facing increased competition from traditional retailers. Walmart, Target, CVS, and others are now using their digital properties as advertising platforms, presenting more digital ad opportunities for SMB Advertisers and more competition to Google, Meta, and Amazon. This is part of a broader trend of tech, retail, and streaming companies growing their digital advertising revenue faster than Meta and Google. 

Best way to reach target audience

In their research paper authored by Paul Hague & Matthew Powell, the distinct strategies available to business-to-business (B2B) marketers, especially those in small and medium-sized enterprises (SMEs), are highlighted. Unlike consumer marketers who target a vast and scattered audience, B2B marketers focus on a more defined clientele. Reaching these potential clients often demands substantial budgets and a diverse toolkit including TV, radio, cinema, and outdoor advertisements. While some B2B marketers may utilize these mass-market channels, many find them financially challenging, and instead, they rely more heavily on targeted methods.

In a survey conducted by B2B International, 245 SMEs were queried about their preferred methods of promotion and their efficacy. The findings underscored the growing significance of digital platforms, with websites emerging as the most popular advertising medium, utilized by approximately 90% of SMEs. Following closely behind are two traditional forms of B2B promotion: public relations (PR) and direct mail, each employed by around 60% of SMEs.

Websites, PR, and direct mail consistently rank as the top three methods of promotion deemed most important by SMEs, highlighting the enduring effectiveness of these strategies in the B2B marketing landscape.

More here.

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>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Dynamic Business – https://dynamicbusiness.com/topics/news/who-spends-the-most-on-ads-us-asia-and-europe-compared.html

Tags: businessEuropeSpends
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