CLEVELAND, May 20, 2020 /PRNewswire/ -- US advertising service revenues are forecast to grow 1.5% yearly in nominal dollars through 2024, according to Advertising Services: United States, a report recently released by Freedonia Focus Reports. Rising levels of consumer spending are expected to support expansion of corporate revenues, and by extension, advertising budgets, fueling growth. The presence of two US presidential election years (2020 and 2024) is also expected to boost election advertising spending. However, advertising revenues are projected to decline 18% in 2020. As the COVID-19 pandemic and the associated economic downturn set in, companies facing a cash crunch have slashed advertising budgets. Declines in consumer spending are expected to cause major consumer goods companies to delay advertising campaigns until after the worst of the pandemic is over and consumer spending returns to growth.
The advertising agencies segment – the largest and fastest growing segment – is projected to advance 2.9% annually through 2024. Expanding advertising budgets as corporate revenues rise will fuel growth. Advertising firms have increasingly integrated data-driven marketing campaigns into their service offerings; these efforts are aimed at understanding and targeting consumers. The diversified offerings and integrated advertising services provided by advertising agencies will also help them exploit rapidly growing marketing channels, such as podcast-based and influencer-based advertising.
These and other key insights are featured in Advertising Services: United States. This report forecasts to 2024 US advertising service industry revenues in nominal US dollars. Total revenues are segmented by establishment type in terms of:
public relations agencies
direct mail advertisers
media buying agencies
other establishment types such as advertising material distribution, product demonstration, display lettering, and welcoming services
To illustrate historical trends, total revenues and the various segments are provided in annual series from 2009 to 2019.
Excluded from the scope of this report are advertising revenues from establishments that do not provide advertising services as their primary activity, as reported to the US Census Bureau. For example, advertising revenues earned by television networks, newspaper publishers, social media websites, and internet search engine providers are excluded.
About Freedonia Focus Reports Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Services & Industries reports can be purchased at Freedonia Focus Reports or MarketResearch.com.
Analysis is intended to guide the busy reader through pertinent topics in rapid succession, including:
total historical market size and industry output
segmentation by products and markets
identification of market drivers, constraints, and key indicators