Digital Ad Spend Forecast Shows Six Percent Growth During 2023

• Advertisers are expected to spend an estimated $509 billion in 2023, up 6% from $481 billion last year, according to findings by the Winterberry Group shared with Marketing Dive.
• An estimated $307 billion, just over 60% of the total, is expected to occur on online channels, according to the report, “The Outlook for Advertising, Marketing and Data 2023.” CTV is expected to be a big recipient of investments, growing at a rate of 27%.
• Investments in data segments, including data, data services, platforms and identity are projected to increase 7% year-over-year for a total of $34 billion.

The Winterberry Group’s report pushes back against some of the grimmer trends seen in the second half of 2022, when the industry began losing steam, reports Marketing Dive. Inflation and economic woes have put a strain on the industry, leaving some in fear of what 2023 will hold. While digital growth is likely to decelerate in the months ahead, overall it will remain strong, with certain sectors expected to see significant growth, per the report.

Investment shifts within the digital advertising sector are not surprising, given the momentum behind CTV, digital out-of-home and influencer marketing. While CTV is leading the digital growth pack, digital-out-of-home channels are expected to grow 10% while influencer channels are expected to grow 17.5%.

An overarching theme is how budgets shifts within digital marketing are likely to have a bigger impact on the landscape in 2023 than the years-long shift away from offline channels. The total offline spend in 2023 is estimated to be at $201.9 billion, with newspaper, magazine, radio and linear TV spend to drop between one and eight percent.

HighSpeedInternet.com ran a survey of 1,000 Americans aged 18 and older in September 2022, using the online survey platform PollFish. The results show people spend about eight hours per day online. That does not include passive activities such as streaming music or video in the background while doing other tasks.

The survey finds that the average American spends about five hours per day listening to podcasts, or streaming music or other audio content. That may seem like a lot of time, but the survey shows those who regularly stream music or audio only give it their full attention 38% of the time. That is not unexpected since AM/FM radio has long been a companion to activities ranging from the drive to work to cleaning the house.