What is the relationship between ad budgets and consumer media consumption?

New Ideas in MarketingEssential news for marketers, summarised by YouGov
October 21, 2021, 4:46 PM GMT+0

A recent study by Ascential Plc’s WARC and GWI highlights gaps in ad spend instead of consumer media consumption worldwide.

Based on a survey of 715,000 consumers across 100 countries worldwide, an over-weighted medium like social media would need to “reduce $94.3 billion” to “mirror global consumption levels next year, while the investment gap is $86.9 billion for linear TV.” As of the first quarter of 2021, social media now attracts more investments from advertisers than linear TV for the first time.

But, both social media and linear TV draws more advertising budgets than the average consumer spends with these channels each day. When compared between the US alone and worldwide, social media overweighting is significantly in the US.

Additionally, social media is the only ad medium in the US that has a more pronounced upward gap in ad spending when compared with the global average. According to WARC analysts, “The purpose of this report is to assist clients in identifying the discrepancies between daily media consumption and advertiser spend, to identify opportunities for optimization better.”

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