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SENSOR TOWER · SEEMA SHAH · APRIL 2024
High Mortgage Rates Leave Paint Industry Out to Dry
Softer trends in the housing market have created ripple effects for the home renovation industry, as most American consumers are eagerly awaiting a decline in mortgage rates prior to making a purchase. This lull in the housing market is prompting paint brands to pull back on digital advertising, as spend across Sensor Tower's cohort of paint brands fell -8% YoY in 2023. ST data also shows that paint brands may have shifted advertising efforts towards retail media networks.
Key Takeaways:
US advertising spend for Sensor Tower's cohort of paint brands in 4Q23 fell by a collective -26% YoY. Across FY23, spend across the cohort decreased marginally, down -8% YoY, however this marked an accelerated decline in growth from 2022 (+27% YoY) and 2021 (+123% YoY), as persistent reported sales declines may have impacted marketing budgets
While the paint cohort mostly pulled back on US ad spend in 2023, Rust-Oleum was an outlier as US spend for the brand exploded 280% YoY. This could be attributed to the company’s eight consecutive quarters of record sales
As Rust-Oleum’s US ad spend surged in 2023, the brand’s share of spend across the cohort increased significantly, up 8ppts from 2022, to 11% in 2023. Sherwin-Williams, Behr, and Menards maintained their status as the largest advertisers across the cohort, accounting for 34%, 24%, and 20% of US ad spend, respectively
In 2023, OTT was the most popular channel leveraged across the paint brand cohort, averaging 34% share of spend per brand, while spend on the channel grew an average of 300% YoY. After OTT, Meta's Facebook (21%) and Instagram (12%) were important destinations for advertiser spend across the cohort in 2023.
Behr and Sherwin-Williams have started to embrace advertising on TikToK, accounting for 13% of spend in 2023 across both companies
In 2023, PPG Industries saw the most impressions from retail media placements, accounting for 31% of impressions across the cohort, followed by Rust-Oleum (25%) and Behr (23%), respectively. This is a strong contrast to the percentage of impressions across the cohort when connected to overall spend in 2023 as Rust-Oleum and PPG Industries only saw a 14% and 5% impression share
For more information, request the full report from reports@sensortower.com.
