Ad Spending Bonanza In 2018
The totals for 2018 US ad spending are finally in, and let’s just say it was a big year for the entire industry. According to Kantar overall US ad spending jumped to $151B, which was a 4.1% increase over 2017. There were two main factors driving this year’s growth – Political and Top 5 spending.
Three quarters of the dollar growth in 2018 came from $5.25B in Political ad spending. While it’s normal to see a spike during the “on cycle” political years, 2018’s midterm growth was 78% higher than the same cycle back in 2014. This overall increase raised the water level for the entire media industry.
The other key driver was increased spending by the five biggest advertisers – of the top five only AT&T was down. Compared to 2017 #1 Procter & Gamble was +4.7%, #2 AT&T was -6.1%, #3 Berkshire Hathaway was +4.8%, #4 Comcast was +21%, and #5 Amazon was a whopping +73% YoY.
Good times for our industry, to be sure! Now you have to wonder if we can sustain this momentum in 2019.