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Home Marketing B2B Marketing

Digital media forecast to lead U.S. ad industry growth in 2023

September 11, 2023
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  • The U.S. promoting industry will grow 5% in 2023 to $360 billion and increase one other 4.2% (excluding political promoting) in 2024, according to a report from Madison and Wall. Including political promoting, ad revenue is forecast to grow 8.1% in 2024.
  • Digital platforms, which include search, social, commerce, retail media and digital video platforms, will account for about 64% of all promoting in 2023. Digital platform-focused corporations are expected to collectively grow 11%, led in large part by retail media, which can account for about $42 billion in promoting revenue in 2023, up 20% over 2022.  
  • Traditional television, each national and native, will experience declines over the yr, particularly as cord-cutting increases and the Hollywood strikes proceed, reducing programming inventory. Outdoor promoting is predicted to see modest growth, while audio promoting will remain flat.  

 

Retail media is once more the story in this most up-to-date outlook report, thanks to the channel’s ability to reach consumers in a buying mindset with beneficial first-party retailer data. Madison and Wall analyst Brian Wieser forecasts that the sector will account for 75% of the industry’s overall revenues by 2028. 

Amazon continues to maintain a dominant position in the retail media space, though others — including Walmart, Instacart, Ebay, Uber, Criteo, Booking.com and Expedia — are well-positioned in the category and are expected to sustain double-digit growth for years to come, according to the report.  

On the opposite hand, so-called “open web” corporations is not going to grow much, as legacy print publications will proceed to see the declines recorded prior to the pandemic. The ad tech sector, nevertheless, can grow faster, pending insertion order-based sales proceed to move toward programmatic trading.  

Meanwhile, the normal TV sector, already hammered by cord-cutting and the Hollywood strikes, will proceed to be pressured to exhibit effectiveness beyond reach and frequency, “especially as pure-play digital platforms are increasingly able to satisfying nearly every marketing goal as well or higher than any alternative,” Wieser wrote.  

The one vivid spot will likely be if broadcast networks and channels can capitalize on their existing and sizable relationships with marketers to offer a wider array of media products. In an example, Wieser noted that marketers could create common identifiers that allow for integrated sales of traditional TV, streaming video and other types of digital inventory.

Many of those concerns, nevertheless, could also be masked by the upcoming political season, which can add roughly $17 billion in revenue to media owners in 2024, particularly owners of local media broadcast channels. Still, the report notes that internet-related promoting has develop into increasingly significant, and that because the category grows, its year-over-year skews to growth rates will likely be “increasingly evident.”

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