In a surprise move following a series of consecutive downgrades, Brian Wieser has boosted the outlook for U.S. ad-spending growth this year to 6.0%. That’s nearly double the percent change he forecast in March when he downgraded his outlook for the second time following his original 2025 benchmark of 5.3% growth in September 2024.
Citing Strong Half, Brian Wieser Surprisingly Turns Bullish For 2025 06/04/2025
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The scarcity is real, and for most retailers – the occasional backorder went from a low-grade and fairly infrequent problem to major outages, much of the time, and backorders of 3-4 months are increasingly common. Customer reactions range from anger and frustration to panic that they won’t get what they need. Believe it or not, it’s possible to make the best of a bad situation. A brand’s response to trying situations: returns, backorders, and out-of-stocks, can make or break your customers’ perception. So what moves make sense? First, your customer has an immediate need. So when possible, sell what’s available today (SWAT). Something that can fill that is far superior to a perfect solution that’s available in 4-6 months. You need a reliable inventory system, and a knowledgeable staff that’s empowered and capable to direct customers to the right solution that’s available on hand, or smart website algorithms that can suggest an appropriate alternate product. But what if offering an alternative product is not possible? Then it becomes about managing expectations, communicating early and often, and empathizing with the customers’ likely frustrations. More at: https://www.brandunited.com/article/supply-chain-woes-communicating-customers/
Many catalog mailers are seeing large increases in revenue and growth in their new-to-file buyers because of the surge in pandemic-driven online purchases. However, with the growth in the number of buyers comes lots of uncertainty. Are these new buyers different than buyers pre-pandemic? The business issue with the significant influx of pandemic buyers is whether they will convert into loyal customers and respond profitably to future catalog mailings. Response rates for pandemic buyers can be quickly tested to know if they are the same or different from the existing base of buyers. The new-to-file buyers can be broken out with precision. Segmenting should be straightforward.
The U.S. ad market expanded for its 11th consecutive month in March -- rising 4.3% over March 2023 -- according to the latest monthly installment of Guideline's U.S. Ad Market Tracker. Smaller ad categories outpaced the growth of the top categories by a margin of nearly four-to-one. While the top 10 increased spending only 1.9% over March 2023, all other categories expanded 7.9%. March's growth was also due to a massive increase in digital vs. traditional media ad spending.