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Is there any indication that ad spending LEADS consumer spending? I can't imagine why anyone would turn down ads while ROAS is blazing. Marketers / ad people

• ancientworldnow 4y ago
  When companies start trimming their budgets ads are first on the block. I've been in an advertising adjacent field for over a decade and ad spends always decreased prior and at the start of economic downturns and recovered earlier than other macros. My personal experience currently is that budgets and projects are down quite a bit at the moment (a small uptick currently but some of that is seasonal).
• importantbrian 4y ago
  This. As someone who analyzes ad spend as part of their job I cannot imagine a scenario in which we would turn down ad spend prior to a downturn in consumer spending? If we're getting good ROAS we aren't turning off the hose. To give OP the benefit of the doubt. Maybe what OP means is that Ad Spend is one of the first lagging indicators to show up. Consumer demand weakens, companies turn down ad spend, and then a few months later the reduction in revenue shows up in the quarterly report. So as an indicator it leads earnings reports and share price drops but lags actual consumer spending.