Global Data Market News

GroupM Forecasts Return To Global Ad-Growth Stability Through 2028

In terms of 2023, GroupM predicts relatively tepid growth for the U.S. (2.0%) and worldwide (4.6%), but expects growth to resume in 2024 with projected rates of 7.5% for the U.S. and 6.7% worldwide. This growth will also include political ad spending.

Source: Media Post

Holiday spending will exceed pre-pandemic levels for first time

US internet users are expected to spend an average of $1,652 this holiday season, exceeding pre-pandemic figures, according to Deloitte. This marks a 13.5% growth rate from 2022, when average spending was $1,455.

Source: Insider Intelligence?

Programmatic ad spend has gotten more diverse and mobile-dominated?

Mobile ad units are expected to capture 70.6% of US programmatic digital display ad spend in 2023, a significant increase from its 39.3% share in 2013. Over the last decade, mobile has gained market share from desktops and laptops, which now only account for 12.9% of programmatic ad spend compared to 60.7% in 2013. The overall programmatic digital display ad spend in the US has grown from $4.72 billion to $132.96 billion during this period.?

However, the industry is facing challenges with Google's plan to phase out third-party cookies and mobile IDs by 2024, leading advertisers to search for alternative solutions. Despite this, many advertisers are unprepared for a future without legacy identification methods.

Source: Insider Intelligence

Advertisers will ramp up spend on creators in 2024, IAB forecasts

According to a report from the Interactive Advertising Bureau (IAB) and research agency TalkShoppe, 44% of surveyed advertisers plan to increase their investment in content creators in 2024, with an average spending increase of 25%.?

Consumer interest in creator content is growing, with 39% watching more creator content compared to last year. Ads around creator content have a significant impact on the consideration, loyalty, and advocacy stages of the purchase funnel. The creator economy is valued at $250 billion this year and is expected to grow to $480 billion by 2027. Advertisers view creator content positively and find it easy to allocate ad budgets to this category.

Source: MarketingDive

In Global Ad Spend Forecasts, CTV Is Poised To Overtake Linear

According to GroupM's global year-end industry growth forecast, global advertising revenue grew by 5.8% to $889 billion in 2023. Digital advertising continues to dominate, with "pure play" digital ad revenue expected to grow by 9.2% in 2023 and reach $1.2 trillion by 2028.?

Live sports viewing remains popular, accounting for 23.5% of national viewing hours among US adults aged 18 to 49. Linear TV is declining, with TV ad revenue accounting for only 17.9% of total ad revenue in 2023. Connected TV (CTV) is experiencing growth but won't offset the losses of linear TV. Retail media revenue is projected to surpass linear TV revenue by 2028.

Source: AdExchanger

5 charts to prepare marketers for 2024

In preparation for 2024, marketers should prioritize increasing their ad spend on retail media and connected TV. Retail media, particularly Amazon Ads and Walmart Connect, is expected to exceed expectations in terms of ad spend. The connected TV market still has room to grow, with YouTube currently dominating both in terms of time spent and ad spend.?

Additionally, marketers need to have a plan in place for the phasing out of third-party cookies by Google in 2024. The creator economy is thriving, with influencer marketing spend surpassing paid social ad spend. Lastly, staying updated on AI advancements will be crucial as it continues to be a top concern for C-level executives in 2024.

Source: Insider Intelligence?