CPG digital ad spend to slow after two boom years

Key stat: The double-digit growth in US consumer packaged goods (CPG) digital ad spend will come to a halt next year and hover around just 6% through 2026, per our forecast.

Beyond the chart:

• CPGs have spent big on digital advertising over the past few years in an attempt to connect with consumers who have pulled back on spending or traded down to private labels, according to our US CPG Industry Ad Spending 2024 report.
• While growth will normalize next year as inflation cools and recession fears recede, US CPG digital ad spend will reach $56.07 by 2026, representing 15.1% of total digital ad spend.

Use this chart: Marketers and retailers can use this chart to illustrate the slowdown in digital ad spend growth among CPG brands and suggest that future success will require optimizing existing capabilities like targeting, personalization, and measurement.

Related EMARKETER reports:

• US CPG Industry Ad Spending 2024 (Subscription required)
• US Retail Industry Ad Spending 2024 (Subscription required)

Note: Historical digital ad spending data up to 2015 is derived from Interactive Advertising Bureau (IAB) and PwC data. Consumer packaged goods includes food products, alcoholic and nonalcoholic beverages, toiletries and cosmetics, cleaning and other household supplies, and cigarettes and other tobacco products.

Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, historical trends of each medium in relation to other media, reported revenues of major ad publishers, estimates from other research firms, data from benchmark sources, consumer media consumption trends, consumer device usage trends, and EMARKETER interviews with executives at ad agencies, brands, media publishers, and other industry leaders.