As COVID-19 impacted retail in a multitude of ways, it isn’t surprising that overall marketing spending from consumer goods companies would decrease in 2020.
Ken Harris, managing partner at Cadent Consulting, presented findings from the firm’s 2020 Marketing Spending Survey at PLMA Live! Presents Private Label Week, noting that spending was down $16 billion from CPGs in 2020.
With shoppers making less trips to the store, buying more in hoarding or through e-commerce, retailers and manufacturers didn’t need to spend on marketing, so the result was a dip in overall spend, Harris said. However, a glimpse at 2021, Cadent Consulting estimates marketing spend driving back up again, estimating overall marketing spending to reach $29 billion.
For the report, Cadent surveyed more than 700 retailers, manufacturers and shoppers to look specifically at marketing spending and trends.