Annual marketing spend will reach $ 4.7 trillion by 2025. It will grow at a compound annual growth rate (CAGR) of $ 1.1 trillion from 2021 to 2025, surpassing the CAGR of 5% from 2015 to 2019.
This is due to industry analyst firm Forrester, which published a new report entitled “Marketing Investment Forecast for 2022.”
Brands are keen to understand how to adjust their marketing investments based on the impact of a pandemic. They continue to increase spending, which varies by region and industry. For example, Chinese and Indian companies are growing fastest, but the fastest growing industries are a mix of pandemic beneficiaries such as interactive media and services, and pandemic delays such as travel and leisure. increase.
Other important findings of the report are:
- US companies spend the most on marketing – $ 1.4 trillion, or 40% of global marketing spend in 2021. They spend a relatively large amount of money on marketing – 7.7% of revenue against the global average of 5.6%.
- Growth in marketing spending will be boosted by Chinese companies. Chinese companies accounted for only 13% of global marketing spend in 2021, but will account for 27% of growth from 2021 to 2025.
- Recovery after a pandemic is quick, but industry performance varies. Healthcare and online retail were strong across the pandemic, but financial services, real estate and travel were the most lagging behind.
- IT software and services will be the biggest dollar growth driver. IT software and services accounted for 7% of marketing investment in 2021, but will drive 14% of the dollar’s growth from 2021 to 2025. It occupies most of the industry. This has greatly benefited from the digital transformation caused by the pandemic.
Brandon Verblow, Forrester’s predictive analyst, said: Against 5% in 2025, 2015-2019. The additional 1 percent point growth may seem modest, but it’s important. That’s an additional $ 171 billion in investment over five years. Given the challenges the pandemic has imposed on the economy, this is a remarkable turnaround. “
According to Veerblow, two dynamics underpin this growth, both related to pandemics.
Accelerating the Transition to Digital Marketing: The ROI of digital marketing is easy to measure, so it’s easy to justify an increase in marketing investment.
Marketing Advantages in a Rapidly Changing World: As pandemics catalyze changes in consumer tastes and behaviors, marketing helps retain existing customers, regain lost customers, and attract new ones. It’s becoming more and more important.
Verblow added that growth varies widely from industry to industry. It ranges from a CAGR of 21% for interactive media and services from 2021 to 2025 to a 1% reduction in energy. The fastest growing industries, somewhat counterintuitively, consist of both pandemic beneficiaries and lags.
Beneficiaries such as interactive media and services, Internet and direct marketing retail, IT software and services, and healthcare tools whose marketing growth has been driven by pandemics will continue to grow after the pandemic subsides.
Delays in travel, leisure, consumer finance, real estate, etc., which were seen to decline during the pandemic, now have plenty of room for growth recovery.
Verblow said: “As companies invest in marketing, they also need to make sure that their budget is well-suited to their industry or region.”
Are you interested in hearing major global brands discuss these themes directly? Please look at the details Digital Marketing World Forum (#DMWF) Europe, London, North America, and Singapore.
https://marketingtechnews.net/news/2022/apr/07/global-annual-marketing-spend-to-reach-4-7-trillion-by-2025/ Global annual marketing spend will reach $ 4.7 trillion by 2025