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[SITUATION] · [QUIET] · [BUSINESS]
2 clusters · 6 sources · 23 days · First seen · Last updated
US consumer spending and advertising trends
Overview
The U.S. branded merchandise market reached $174 billion, with the promotional products sector expected to account for approximately 13% of total U.S. advertising spending by 2025. Recent retail data shows a shift in consumer behavior where total spending increased by 8% despite a 7% decline in transaction volume. This trend is characterized by a rise in average order value, suggesting consumers are purchasing more expensive items even as conversion rates drop.
In response to these market dynamics, major consumer goods brands are increasing advertising investments. While the overall ad-to-sales ratio for many U.S. advertisers has declined since 2019, companies such as Coca-Cola, Nike, and Procter & Gamble have seen advertising spend grow by 36% between 2019 and 2025, outpacing their revenue growth. This shift is largely driven by a redirection of budgets toward retail media to achieve more measurable links between advertising spend and sales outcomes.
Entities
WARC Media · Oxford Economics · Adobe Digital Insights · PepsiCo · United States
Timeline
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[BUSINESS] 4 sourcesConsumer brands increase advertising spend via retail media
Consumer goods brands are increasing advertising intensity by shifting budgets toward retail media to ensure measurable sales outcomes as global commerce media investment is projected to exceed $300 billion by
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[BUSINESS] 2 sourcesUS consumer spending and branded merchandise markets show significant shifts
Recent data shows the U.S. branded merchandise market reached $174 billion, while retail trends reveal consumers are making fewer but more expensive purchases.
Sources
blog.auditedmedia.com · gcn.com · internetretailing.net · marketeer.sapo.pt · ppai.org · totalmedios.com