By Tom Whitfield

Consumer goods giants are stepping up their advertising intensity just as other major spenders pull back, according to a new WARC report.

The findings point to a split in the upper ranks of ad spending. Packaged goods manufacturers and categories such as beauty and cosmetics are pushing harder. Other heavyweight categories are cutting back.

WARC describes the result as a "two-speed marketplace."

What does the report show?

The divergence runs along category lines. Consumer packaged goods and beauty and cosmetics sit on one track, increasing advertising intensity. Technology firms sit on the other, reducing theirs.

That split matters for the wider ad market. When the largest spending categories move in opposite directions, media demand, pricing and inventory pressure can shift unevenly across channels.

The takeaway in plain words: the brands that sell everyday goods are buying more advertising, while tech companies are buying less.

Why the two-speed dynamic?

WARC frames the trend through the behavior of the biggest budgets. Consumer goods giants — companies whose products restock shelves continuously — are leaning into advertising to defend share.

Tech firms, by contrast, are pulling back, per the report. The category that helped fuel digital ad growth in recent years is now easing off.

The one-line read: ad market growth is no longer uniform across the major spender categories.

What comes next?

For marketers and media owners, the WARC findings suggest planning around two markets at once. CPG and beauty budgets are intensifying; large tech budgets are contracting.

How long the gap persists will depend on whether tech spend returns or whether consumer goods brands keep raising intensity — the question WARC's "two-speed marketplace" now puts in front of the industry.