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Business Environment Profiles - United States

Total advertising expenditure

Published: 24 February 2025

Key Metrics

Total advertising expenditure

Total (2025)

354 $ billion

Annualized Growth 2020-25

1.6 %

Definition of Total advertising expenditure

Total advertising expenditure represents the sum of measured US advertising expenditure and an estimate of unobserved US advertising expenditure, such as direct mail, sales promotions, catalogs and business publications. Data is sourced from Advertising Age.

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Recent Trends – Total advertising expenditure

Total advertising expenditure closely follows the movement of the overall economy since businesses are generally more willing to spend more on advertising when corporate profit rises; moreover, advertising is often one of the first expenses reduced when profit is restricted. Advertising expenditure experienced steady growth over the previous decade before plunging in 2009 due to the recession, falling 14.6% from $270.7 billion in 2008 to $231.1 billion in 2009. However, advertising expenditure rebounded quickly as the economy returned to growth, rising to $274.8 billion by 2012. Additionally, as the economy has experienced stable growth since the recession, total advertising expenditure has increased yearly since 2010.

The advertising expenditure for traditional media, such as magazines, newspapers and network TV, has exhibited a general decline over the past five years as the internet has upended the decades-old media landscape. In contrast, internet ad spending has risen steadily over the past 15 years as usage has increased. The internet usually provides a more cost-effective advertising method, improving a company's ability to directly target consumer groups and easily measure results. This incentivizes companies to move their advertising efforts online and away from traditional print media. As a result, reduced ad expenditure in traditional media does not mean a reduction in total advertising output, but rather a movement toward a more cost-effective medium.

Additionally, as consumers spend more time watching TV than other media mediums, such as print, newspapers, magazines and the radio, total ad spending growth has been driven by network TV, spot TV, national syndicated TV and cable TV networks in recent years. However, audience fragmentation has posed as a key issue to businesses' willingness to invest in TV advertising. In 2020, advertising expenditure declined 5.4%, as the COVID-19 pandemic and social distancing measures resulted in a widespread economic shutdown and decline in consumer spending, subsequently leading to companies reducing advertising expenditure. The driver rebounded in 2021 as economic activity resumed throughout the country. As inflation continued to rise and interest rate hikes were implemented however, growth in advertising expenditure slowed as consumer spending falls. Growth in advertising was limited during 2023 as budgets began to be constrained as a result of a prolonged period of high interest rates. Overall, total advertising expenditure is expected to rise at an annualized rate of 1.6% over the five years to 2025.

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5-Year Outlook – Total advertising expenditure

IBISWorld forecasts a rise in total advertising expenditure over the next five years, though at a...

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