78% of advertisers intend to increase their spending on podcast ads. The main justification was that they intended to use advertising to publicize their own podcast and increase its popularity. With replies mainly focusing on how it generates a favorable ROI or that businesses believed it was fantastic for branding and less expensive than radio, 18% plan on keeping their ad spend. Web Marketing Aurora

 

The Decline

 

A decline in ROI from podcast advertising was the main factor cited by the 4% of respondents who said they were reducing their ad spending.

 

With the main response being that it is profitable and they want to scale it, 34% of respondents for banner advertisements plan on increasing their ad expenditure. 52% intend to keep spending the same amount, with profitability being the key justification. And 14% of businesses intend to cut back on their advertising budgets, primarily because they are not as profitable as they would like.

 

Boost

 

94% of companies intend to boost their advertising budgets because they consider remarketing to be one of their most successful marketing channels. 5% intend to keep operating it since it is profitable. And 1% of advertisers intend to cut back on their remarketing spending, primarily due to a decline in conversions.

 

In case you are unfamiliar with these terminology, OTT/CTV refers to streaming TV.

 

The main justification given by 52% of businesses for expanding their OTT/CTV ad spending is that it offers greater transparency and trackability than traditional TV advertising. The main reasons given were that it offered excellent branding and/or profitability, and 35% of respondents said they planned to keep spending in this sector.

 

Regarding the 13% of consumers who intend to cut back on their spending, Google advertisements and other more lucrative channels were primarily to blame.

 

When it comes to influencer marketing, which is primarily utilized by eCommerce businesses, 41% intend to increase their spending, primarily because it offers a better return on investment than the other marketing channels they now employ.

 

17% of respondents said they would keep spending the same amount since doing otherwise would result in a loss for the business.

 

The main reason given by 42% of respondents for reducing their influencer marketing ad spending is that they are unable to generate a positive return on investment.

 

The numbers make it obvious whether or not influence marketing is effective for businesses. Approximately 58% of businesses that employ this strategy are able to do it profitably.

 

Ads in the past

 

There was a significant tendency in conventional advertising. Companies responded by announcing plans to cut back on traditional advertising spending in practically all platforms.

 

A few factors made it a toss-up. The principal ones are:

 

inability to monitor return on investment

Reduced marketing spending due to the economy

a trend toward shifting ad spending to performance marketing as a result of improved outcomes.

Many businesses are still sticking to their budgets, and when we looked more closely at the responses, we found that very few businesses are completely ceasing to spend money on traditional advertising because they still see it as a crucial way to connect with their target audience.

 

Total marketing expenditures

There are numerous budgets that are altering, as you can see from all of the aforementioned graphs.

 

However, we also wanted to know how businesses are using their whole marketing spend. Are they rising or falling?

 

 

I had anticipated that the downturn would cause many businesses to cut back on their spending, but overall, both B2C and B2B spending is rising rather than falling.

 

Only 23% of B2C organizations aim to reduce their spending, while 51% plan to keep it. Instead, 26% want to increase their spending.

 

The main arguments for expanding or sustaining their expenditures focused on the profitability or general effectiveness of their marketing.

 

Regarding the decreases, the economy and how it is already affecting their business accounted for the majority of the justifications.

 

Regarding B2B, many businesses in this sector generate recurring income and have significantly better financial performance predictability into upcoming quarters.

 

The main justification for 34% of them boosting budgets is that their marketing is profitable, or at least when viewed from a lifetime value viewpoint. 45% say they’ll stay put, with the aforementioned justification serving as their main motivator.

 

Additionally, 21% of B2B businesses anticipate reducing their overall marketing budgets as a result of the economy’s negative effects on their overall performance.

 

Conclusion

Even while most marketers are concerned about the state of the economy and are altering their marketing strategies, most are increasing or maintaining their spending rather than doing so.

 

Most businesses want to grow their spending for earned media because it has a larger return on investment than organic social, which has a diminishing organic reach as its main factor.

 

Additionally, the majority of marketers are at least experimenting with AI solutions, which are the newest trend.

 

In terms of paid advertisements, the majority of businesses intend to increase or keep their search ads. But many businesses intend to cut back with social ads. Due to IOS privacy changes that affect the performance of their ads and businesses’ inability to grow their social advertising as profitably as they once could, rather than out of their own volition.

 

Funny enough, when it comes to Twitter, there is a bit of a divide as 28% of businesses aim to increase ad spending while 34% plan to reduce or cease their advertising as a result of their opinions of Elon Musk and the decisions he has made.

 

Regarding traditional ad purchases, most businesses want to cut back on their advertising budgets across all channels and redirect a large portion of it to more trackable performance channels like Google Ads or SEO.

 

The real question is, what are you going to do with your marketing spending in 2023 now that you know what others are doing?

 

 

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