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  • Industry Insight Report: Advertising & PR Agencies Q2-2024

Industry Insight Report: Advertising & PR Agencies Q2-2024

Advertising & PR Industry Insight Report Cover

Marketing Budgets Drop
Marketing budgets are down in 2024 compared to last year, according to Gartner’s 2024 CMO Spend Survey. On average, marketing budgets have fallen to 7.7% of revenue in 2024 compared to 9.1% in 2023. In the four years before the pandemic, marketing budgets averaged about 11% of revenue, but they’ve fallen to 8.2% in the four years since. As budgets have tightened, marketers are focusing dollars where they can have the most impact. In 2024, digital channels accounted for more than 57% of paid media spending, led by search (13.6%), social media (12.2%), and digital display ads (10.7%). Among traditional channels, 2024 spending was led by event marketing (17.1% of total ad spending), followed by sponsorship (16.4%), and TV (16%). Nearly two-thirds of marketers said they lacked the budget to execute their strategy in 2024 but hope leveraging generative AI will help them do more with less.

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Industry Forecast

Sales for the US advertising and PR agencies industry are forecast to grow at a 4.1% compounded annual rate from 2024 to 2028, comparable to the growth of the overall economy.

By the Numbers

Employment by advertising and PR agencies increases
Overall employment by advertising and PR agencies changed 5.6% in January compared to a year ago, according to the latest data from the Bureau of Labor Statistics.

Wages at advertising and PR agencies rise
Average wages for nonsupervisory employees at advertising and PR agencies were $36.00 per hour in December, a 2.5% change compared to a year ago.

  • Lion Business Advisors quarterly industry insights data provided by VerticalIQ industry intelligence platform