Comparing the Apples and Oranges of Marketing Verticals

This week I played fruit ninja with a column in MarTech Series looking at the differences and similarities between various industry sectors stemming from our Mediaocean 2024 advertising market outlook report.

Below is the article for your consumption. Our H2 market report will be coming out next month. We just finished fielding the research and reached an all-time high of 1,200+ respondents. That's some n!

Mediaocean’s Advertising Outlook: Slicing and Dicing the Sectors

Mediaocean’s 2024 Advertising Outlook report showed a clear consensus among 1000+ marketers from multiple verticals – despite macroeconomic headwinds, optimism pervades the industry.?

Respondents affirmed their intent to maintain or increase spending in nearly every channel, with CTV, Social, digital display/video growing most rapidly.?

Gen AI, CTV, and eCommerce emerged as the consumer trends to watch with market research, data analysis and copywriting being the top applications for AI.

But looking one layer deeper, and behind that consensus, some interesting differences emerge between the sectors.?

Let’s explore…?

1. Media Mix Patterns are, well, Mixed.

Despite the economic uncertainty lingering from 2023, marketers are maintaining or increasing spending across nearly every channel. That said, when applying a vertical filter, some formats get more emphasis than others.

• FinServ, Tech, and Entertainment Prioritize Display, Video, and Social: 75% of Financial Services brands plan to boost digital display/video spending, reflecting a strategy to meet consumers where they are deeply engaged. Similarly, 72% of Entertainment brands are increasing spending on digital display/video, with a focus on dynamic content to captivate audiences in a competitive streaming market. Meanwhile, 68% of Tech brands aim to increase social media spending, emphasizing data-driven strategies within walled gardens to enhance user engagement.?

• CPG, Pharma, Retail, and Automotive all Grow CTV Spend, But Not At The Expense of Linear: Connected TV (CTV) is emerging as a major growth channel for the Consumer Packaged Goods (CPG), Pharmaceutical, Retail, and Automotive sectors with 56%, 60%, 59%, and 58% planning increases, respectively. Importantly, for each of these verticals, the majority of marketers are also maintaining linear TV budgets. The survey data does not support the widely-held belief that CTV growth comes at the expense of Linear spend, but rather testifies to an omnichannel combination of precisely targeted CTV with the reliable reach of traditional television. ?

2. What’s the #1 Consumer Trend for 2024? Depends on your Vertical.?

When we asked marketers to rank the most critical consumer technology and media trends, there were some similarities in the top 3, but meaningful differences when it comes to the #1 spot.?

• CPG & Retail – E-commerce Everywhere: E-commerce continues to dominate the CPG and Retail sectors as the most critical trend. With 57% of CPG marketers and 59% of retail marketers emphasizing "e-commerce everywhere," it’s clear that the generational shift to online shopping has reshaped consumer behavior in ways that retailers and GPC brands feel most acutely. They are likely the canaries in the proverbial coal mine, with omnichannel commerce set to become a major trend for all verticals as retail media networks become more pervasive.
• Tech & Telecom – Generative AI: In contrast, the Technology and Telecommunications sectors are heavily focused on Gen AI. For Telecom, 64% of marketers rank Gen AI as the most important trend, reflecting its transformative impact on data analysis, customer experiences, and operational efficiencies. These innovative, technical companies are closest to AI disruption, showcasing their leading role in embracing and integrating AI technologies.
• Pharma, Auto, and Entertainment – CTV and Streaming: The Pharmaceutical, Automotive, and Entertainment sectors prioritize CTV and Streaming at 59%, 61%, and 62%, respectively. Perhaps it’s no surprise that CTV emerges as the top trend for Linear TV stalwarts (Pharma and Auto) and for Entertainment companies, for whom streaming is much more than just a marketing channel.??

3. Pharma, Tech and Telecom Highlight Enduring Importance of Brand Advertising

One of our questions asked, “Given current macroeconomic conditions, which advertising capabilities and media investments are most critical?” All verticals listed “performance-driven paid media” as the top priority. But Brand advertising remains a top-2 priority for Pharma, Technology and Telecom, over measurement and attribution. This emphasis on brand advertising reflects their strategic approach to balance immediate performance metrics with long-term brand equity.?

4. Use of AI: Telecom Prioritizes Market Research

Across all verticals, data analysis, market research, and copywriting are the primary use cases for generative AI. Notably, Telecom marketers uniquely prioritize market research as the number one application of AI. This prioritization underscores the sector's reliance on deep insights to drive strategic decisions and enhance customer understanding.

5. CPG Feels The Creative-Media Gap Most Acutely?

The "creative-media gap" remains a significant challenge, particularly for the CPG sector. An overwhelming 94% of CPG respondents report a lack of synchronized media and creative processes. This disconnect results in inefficiencies, increased costs, and slower go-to-market strategies. Addressing this gap represents a substantial growth opportunity for brands, emphasizing the need for ad tech platforms that enhance creative relevance and activation across diverse digital marketing channels.

Methodology:

All data points are based on a survey of 1,085 global marketers conducted via TechValidate in November 2023. Respondents were asked to indicate their industry vertical and that information was used to create subsets for further analysis. The full findings are available for download at www.mediaocean.com/reports and the breakouts for each sector are as follows:

Entertainment - 151 marketers?

Pharmaceutical and Healthcare - 147 marketers?

Consumer Packaged Goods – 118? marketers

Technology - 117 marketers

Retail - 117 marketers?

Financial Services - 95 marketers

Telecommunications - 85 marketers

Automotive - 87 marketers?

Other - 168 marketers