The growth of digital advertising spending continues its upward trajectory in 2023, with a new report from GroupM revealing an overall increase at a smaller rate than previous years. Despite the downturn, the report indicates this growth limitation is due to the industry’s prosperous nature rather than economic woes.
Digital pureplay, a significant factor in the advertising landscape, is projected to be responsible for 68.8% of total ad revenue growth in 2023, with an expectation to reach 74.4% by 2028. This single-digit growth is a testament to digital advertising’s maturity and saturation in the market rather than a sign of recession.
In recent years, various forms and formats of digital advertising have skyrocketed in significance, dominating the market with its targeted, cost-effective, and innovative strategies. As digital platforms and technology mature, the advertising landscape is quickly adapting to these new channels, making digital advertising an essential component of any modern marketing campaign.
Ad revenue from retail media channels is expected to experience a 9.9% growth, reaching $125.7 billion in 2023. GroupM predicts that retail media will surpass television revenue by 2028, with a 15.4% share in total ad revenue. This increase showcases the potential of retail media and its ability to connect brands with buyers in an increasingly competitive market.
Traditional television’s 2023 global revenue is projected to be around $133.6 billion (excluding U.S. political advertising), signaling a 1.2% decline from the previous year. In contrast, connected TV (CTV) revenue is estimated to reach $25.9 billion in 2023, an impressive 13.2% increase over 2022, with a projected 10.4% growth rate from 2023 to 2028. This data highlights the ongoing shift in consumer viewing habits and the rising importance of CTV in the advertising space.
Digital OOH is expected to see a robust 26.1% growth in 2023, totaling $13.3 billion. When compared to the overall OOH growth of 12.7% — yielding $35.6 billion in 2023 — it’s evident that digital OOH is rising as a preferred advertising medium due to its dynamic, engaging, and interactive capabilities.
GroupM’s 2023 predictions include a 5.9% increase in global ad spend, amounting to $874.5 billion. The U.S. ad spend is expected to grow by 5.1% ($322.5 billion) in 2023 and continue with a 5% increase in 2024. The International Monetary Fund’s anticipated 7% inflation for 2023 will have far-reaching implications for these numbers, potentially adding pressure to advertisers.
In conclusion, the growth of digital ad spending – albeit slower in 2023 – remains a dominant force in the advertising industry. As brands and marketers navigate an increasingly digital landscape, advertising trends are poised to adapt and continue shifting toward more efficient and effective strategies. The future of digital advertising looks brighter than ever, with new technologies and channels offering advertisers greater reach, precision, and engagement opportunities with their target audiences.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
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