After the most recent positive jobs report, are brands really ready to 'unpause' their stalled ad spend?
The U.S. economy added 254,000 jobs in September, easing fears of a downturn, and signaling economic stability
The most significant job gains occurred in food services, health care, government, and construction
Rising consumer spending and increased advertising budgets have brand and marketing leaders optimistic about the upcoming year
Oct 10, 2024
Paramark News Desk
Any way we package this, growth is coming back and companies are loosening up budgets to put toward spends they had put on pause or canceled altogether.
Geoffrey Colon
Brand Consultant
,
Feelr Media, fmr. Microsoft and Dell
Quick recap: The U.S. economy added 254,000 jobs in September, calming immediate fears of a downturn as businesses across industries continue experimenting with remote, hybrid, and in-person work models. With the unemployment rate holding steady at 4.1%, the latest jobs report offers reassurance to workers and economists alike, signaling economic stability.
Food services and drinking places added nearly 70,000 jobs.
Health care saw an increase of 45,000 jobs, with notable gains in home health care services, hospitals, and nursing and residential care facilities.
Government and construction employment continued its upward trend with an addition of over 30,000 and 25,000 jobs respectively.
Why it’s important: As employment rises, so does disposable income, directly benefiting sectors like healthcare, food services, and construction, where job growth offers consumers greater access to essential services and housing. This increase in spending creates a positive economic cycle, where higher demand stimulates business growth and innovation, according to economists.
In August, U.S. personal income increased by $50.5 billion (0.2%), with disposable personal income rising by $34.2 billion.
Consumer spending grew by $47.2 billion, also up 0.2%, driven by increased spending on services such as housing and financial services.
Ad spending: The uptick in consumer spending is likely to have a direct impact on advertising budgets. With more disposable income circulating, businesses recognize the importance of capturing consumer attention and positioning themselves ahead of competitors.
According to industry analyst Brian Wieser, U.S. ad spending is projected to grow by 7.2% to $381 billion in 2024, excluding political ads.
Experts weigh in: Industry insiders are seeing signs that companies are beginning to loosen up their budgets as the economy shows signs of growth. This shift is also influencing how businesses approach advertising and content strategies.
"Any way we package this, growth is coming back and companies are loosening up budgets to put toward spends they had put on pause or canceled altogether,” said brand consultant Geoffrey Colon. “The first amount of money most people get is probably going to pay down some debt. But then after that I think a lot of it will go into operating costs if you're a business owner, or other costs to help you keep growing."
Colon, who recently launched his creative agency Feelr Media after stints at Dell and Microsoft, also noted the shift in how businesses are investing in content over traditional ads:
"A lot of companies are catching onto the fact that digital ads are now very expensive. This is why every other post on LinkedIn is 'Here's how to go viral.' Now, while some may not go that route, they all know content is important. So I think more spend a lot of money developing this, and then spend ads to help 'boost' it to desired audiences."
Bottom line: In a thriving labor market, rising consumer spending and increased advertising budgets create a reinforcing cycle that fuels economic growth. As more people gain job security and disposable income, they continue to spend, while businesses compete to capture this demand, further stimulating economic vitality.
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After the most recent positive jobs report, are brands really ready to 'unpause' their stalled ad spend?
The U.S. economy added 254,000 jobs in September, easing fears of a downturn, and signaling economic stability
The most significant job gains occurred in food services, health care, government, and construction
Rising consumer spending and increased advertising budgets have brand and marketing leaders optimistic about the upcoming year
Oct 10, 2024
Paramark News Desk
Any way we package this, growth is coming back and companies are loosening up budgets to put toward spends they had put on pause or canceled altogether.
Geoffrey Colon
Brand Consultant
,
Feelr Media, fmr. Microsoft and Dell
Quick recap: The U.S. economy added 254,000 jobs in September, calming immediate fears of a downturn as businesses across industries continue experimenting with remote, hybrid, and in-person work models. With the unemployment rate holding steady at 4.1%, the latest jobs report offers reassurance to workers and economists alike, signaling economic stability.
Food services and drinking places added nearly 70,000 jobs.
Health care saw an increase of 45,000 jobs, with notable gains in home health care services, hospitals, and nursing and residential care facilities.
Government and construction employment continued its upward trend with an addition of over 30,000 and 25,000 jobs respectively.
Why it’s important: As employment rises, so does disposable income, directly benefiting sectors like healthcare, food services, and construction, where job growth offers consumers greater access to essential services and housing. This increase in spending creates a positive economic cycle, where higher demand stimulates business growth and innovation, according to economists.
In August, U.S. personal income increased by $50.5 billion (0.2%), with disposable personal income rising by $34.2 billion.
Consumer spending grew by $47.2 billion, also up 0.2%, driven by increased spending on services such as housing and financial services.
Ad spending: The uptick in consumer spending is likely to have a direct impact on advertising budgets. With more disposable income circulating, businesses recognize the importance of capturing consumer attention and positioning themselves ahead of competitors.
According to industry analyst Brian Wieser, U.S. ad spending is projected to grow by 7.2% to $381 billion in 2024, excluding political ads.
Experts weigh in: Industry insiders are seeing signs that companies are beginning to loosen up their budgets as the economy shows signs of growth. This shift is also influencing how businesses approach advertising and content strategies.
"Any way we package this, growth is coming back and companies are loosening up budgets to put toward spends they had put on pause or canceled altogether,” said brand consultant Geoffrey Colon. “The first amount of money most people get is probably going to pay down some debt. But then after that I think a lot of it will go into operating costs if you're a business owner, or other costs to help you keep growing."
Colon, who recently launched his creative agency Feelr Media after stints at Dell and Microsoft, also noted the shift in how businesses are investing in content over traditional ads:
"A lot of companies are catching onto the fact that digital ads are now very expensive. This is why every other post on LinkedIn is 'Here's how to go viral.' Now, while some may not go that route, they all know content is important. So I think more spend a lot of money developing this, and then spend ads to help 'boost' it to desired audiences."
Bottom line: In a thriving labor market, rising consumer spending and increased advertising budgets create a reinforcing cycle that fuels economic growth. As more people gain job security and disposable income, they continue to spend, while businesses compete to capture this demand, further stimulating economic vitality.
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Weak earnings from Urban Outfitters proves that even the top Millennial-birthed brands are still struggling to connect with Gen Z
Oct 18, 2024
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DoorDash unveils new omnichannel ad solutions to compete with Instacart and Uber
Oct 14, 2024
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Advertisers see big returns with TikTok's new automated community engagement tools
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Pinterest unveils AI-powered Performance+ Suite to boost ad campaigns
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