The global marketing industry is now seen with a clearer view, thanks to a survey compiled by equity research firm Redburn and PwC. It calculates that the sector is now worth $1.7 trillion worldwide – far higher than previous estimates. A proprietary study was done on all traditional paid and digital media, in addition to owned media, paid promotions, sales promotions and investments in data and marketing technology to arrive at this attention-grabbing headline number.
Finance data concept.GETTY
Paid media as a proportion of total expenditure was expected to drop down from 42% in 2015 to just 37% in 2018. Instead these dollars have been diverted toward primarily owned media and marketing technology. Another trend identified by the authors was a preference for Call-To-Action activities over brand marketing, with potentially negative consequences for some traditional business models.
Bianca Dallal, partner at Redburn, said: “The evolution of marketing expenditure has profound implications for agencies, media owners and brands. Our study reveals that as budgets shift away from paid media, the reliance on intermediaries falls, with negative implications for traditional agencies.”
The survey was collated from the detailed responses of 120 senior marketing executives, pointing towards a slowdown in growth for the period between 2019 and 2021.
[“source=forbes”]
