The United States is, by far, the largest advertising market in the world. In 2021, more than 285 billion U.S. dollars was spent on advertising in the United States.
Marketing budgets as a percent of overall budgets rose to 11.8%, resetting to pre-pandemic levels, while marketing budgets as a percent of revenues increase to 10.4%. Yearly growth in marketing spending breaks 10% for only the second time in a decade and is predicted to show further lifts over the next year at 13.6%. Digital marketing spending, which currently accounts for 57.1% of marketing budgets, is expected to grow by 16.2% during the same period.
Increased marketing spending over the next year is expected across all categories, including brand building (+11.8%), customer relationship management (+9.5%), new product introductions (+8.8%), customer experience spending (+8.6%), and new service introductions (+5.3%). Traditional advertising spending (+2.9%) shows positive lifts for the second survey in a row, reversing a decade-long decline in these budgets.
Customer acquisition budgets are reported to be 14.7% larger than customer retention budgets while companies spend approximately 7% more on R&D than marketing.