Mark Gorman, CEO, Matrix Solutions, speaks about the companies first Advertising Spend Report – providing insights derived from the activity of more than 10,000 active users on its media ad sales platform, Monarch, from 2016 to 2017. The Advertising Spend Report is meant to help media ad sales teams improve their bottom line with a perspective that will move the right inventory to the right customers at the right price.
In the beginning of 2017, it was predicted that paid media advertising spend would continually grow throughout the course of the calendar year, as the post-recession growth trends were solidified. And while actual industry-wide statistics are not yet released, we are seeing a flatter year for many media organizations, according to data from Matrix Solutions’ annual advertising spend report.
The report, which examined $11 billion in media ad sales to determine popular spend categories and platforms, found 2017 was nearly flat when it came to ad spend with a less than 2% decrease between 2017 and 2016. If anything, media companies should consider this a writing on the wall that the stakes are high for maximizing revenue, and they need to start evaluating ad spend activity to begin revamping strategy. Intelligence lies in the depths of which brands and industries are advertising and through which channels.
Smart industries to target this year
The hot ticket buyers from 2017 include trade organizations (8.94% growth), media/communications companies (4.84% growth), and health and beauty brands (4.09% growth).On the other hand, media companies took a hit when it came to beverages (25.89% decline), automotive-auto related (9.98% decline), and restaurants (5.87% decline).
We often hear about which individual companies spent the most on advertising in a given year, but having a more holistic view into which industry categories are spending more (and which are spending less) is one way media companies can selectivity flaunt inventory to the types of brands most likely to bite. Knowing these trends any given year welcomes the opportunity to maximize efforts in targeting customers.