Global digital ad spending will “only” increase at 8.4% in 2023, according to a GroupM report out today. This is its smallest increase since the 2009 financial crisis, but this year it is limited by success, not economic problems. Digital, in all its various forms and formats, continues to be the dominant force in the industry, accounting for 68.8% of global ad revenue growth in 2023 and expected to reach 74.4% of total ad revenue by 2028.
Retail media networks are seeing significant growth, with the sector growing 9.9% to reach $125.7 billion in 2023, on track to surpass television revenue in 2028. Traditional TV, however, is forecast to be $133.6 billion in 2023 (not including U.S. political advertising), representing a 1.2% drop from the previous year. Connected TV revenue is estimated to come in at $25.9 billion this year, increasing by 10.4% from 2023 to 2028 on a compound annual basis to $42.5 billion.
Digital out-of-home is also doing well, with the sector estimated to rise 26.1% to $13.3 billion this year, more than double that of OOH overall, which is anticipated to grow 12.7% to $35.6 billion. Globally, total ad spend (excluding U.S. political advertising) is predicted to grow by 5.9% to $874.5 billion in 2023 and 6% next year. In the U.S., total ad spend is set to increase by 5.1% to $322.5 billion in 2023 and 5% in 2024.
Originally reported by Martech: https://martech.org/global-digital-ad-spend-set-to-grow-8-4-this-year/
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