U.S. digital ad spending is at its slowest growth rate in more than a decade, even though nearly $20 billion more will be spent this year than in 2022, the latest “US ad Spending 2023” report says. from eMarkter.
The outlook for the U.S. ad industry is poor compared to recent years, but total media ad spend will cross the $350 billion mark in 2023. Digital will account for 74.6% of that total, or 263, $89 billion. A moderate recovery in growth is on the horizon, but the glory days are over.
The revenge of l’OOH/DOOH
Total media ad spend will only increase by 3.8% due to negative growth in traditional media. Advertising spending for television, radio, out-of-home and print media will collectively decline 6.3% this year, with most of the loss coming from television. Non-digital display will be the only traditional format to grow, but only by 3.1%, which is a small slice of the pie.
CTV to the rescue
The rise of connected television (CTV) will drive display ad spending, while social media advertising remains sluggish. Display will account for 55.9% of digital ad spend this year, up from last year but less than the peak in 2021. CTV and short-form video will drive slightly positive results in 2023. Meanwhile, social media will lose share for the third year in a row – Meta is expected to see minimal growth and Twitter’s ad revenue will decline significantly.
2023-06-05 20:22:39
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