Blog: National Marketers Are Bullish on the Economy

RADIO ONLINE | Monday, February 3, 2025

Cumulus Media and Westwood One

New research from Advertiser Perceptions as highlighted in Cumulus Media | Westwood One's latest blog post suggests a growing optimism among national marketers regarding the economy, with many planning to increase advertising budgets and expecting a surge in new product launches. The research, conducted in December 2024 and January 2025, surveyed 300 executives responsible for media brand selections, each managing at least $1 million in annual ad spending.

Key findings include:

• Economic Growth Expectations: 47% of marketers forecast U.S. GDP growth over the next year, a significant rise from 23% in January 2023. This optimism persists despite concerns about increased tariffs and regulatory uncertainties. Eric Haggstrom, VP of Business Intelligence at Advertiser Perceptions, noted, "Advertisers are bullish about the economy and are likely to increase budgets barring major economic setbacks."

• Spending Trends: Brands with over $25 million in annual spending are more optimistic about GDP growth (58%) compared to those spending between $1 million and $25 million (40%).

• Reduced Economic Concerns: Worries about inflation remain, though less so than previous years, while concerns about supply chain disruptions and interest rates have significantly decreased.

• Recession Predictions Abated: Contrary to widespread recession fears in 2022 and 2023, these did not materialize, leading to a stabilization and now an increase in advertising budgets.

• Influence of GDP on Budgets: Over half of the surveyed media agencies and marketers (51%) state that GDP growth will influence their advertising budgets, up from previous years.

• Advertising Budget Increases: 37% of advertisers expect a larger budget in 2025, up from 29% in the previous year.

• Business Environment: 44% of marketers anticipate an improving business environment in the first quarter of 2025, with many noting improvements already in the last quarter of 2024.

• Record High for New Products: Confidence in the economy has led to 75% of marketers planning new product launches in 2025, the highest level recorded.

• Growth in Audio Advertising: There is an expected increase in ad spending across all audio platforms, influenced by the rising cultural relevance of podcasts.

• Strategic Brand Building: A survey by Prophet highlights that 70% of top-performing marketers emphasize the importance of cohesive brand storytelling and engagement in driving short-term consumer actions, contrasting with the less effective focus on performance marketing by underperforming brands.

This research underscores a pivotal shift in marketing strategies as confidence in economic stability drives advertising investments and new product initiatives.