Paid Search Spending to Hit $110 Billion in 2023
According to a recent eMarketer report, paid search spending is expected to hit $110 billion in this year.
Retail media and search. Paid Search represents 41.8% total digital spending. If it reaches $100 billion, the growth rate will be slightly higher (8.2%) than that of digital advertising in the United States, which is projected to grow by 7.8%.
Retail media networks (RMNs), which are part of the search industry, have seen a growth of 18.7% in retail media searches. The projected spending for this segment will be close to $30 billion by 2023.
RMN’s digital ad revenues (not only in search) are on track to increase from $31 billion to $45 billion by this year. If the current spending rate is maintained, it will surpass $106 billion by 2027.
Why do we care? Search is going to be challenging in 2023. We’re looking forward to getting more clarity on what these changes mean for engagement and ad results. It’s encouraging to see the overall growth of paid search, especially in retail.
The IAB reports that search advertising revenue in the U.S. will reach a record of $84.4 billion by 2022 .
U.S. The forecast predicted that digital advertising spending, which has dropped below 10% for 14 years, will rebound to 11,2% growth by 2024. The forecast predicts that annual increases will hover around 10% until 2027.
In 2021, digital ad spending grew by 37.6% following the initial COVID pandemic wave. In 2022 the numbers dropped dramatically with a 10.6% increase.
The digital slice of the pie. Media spending will increase by 3.8% in 2014 as traditional media investments migrate to digital.
In 2023, digital media will account for 74.6% (or $264 billion) of the total media budget in the United States. Digital media’s share of total media spend is expected to increase by about 2% per year in the next few years.
Display advertising and connected TV (CTV). CTV advertising continues to grow.
Display ads, which account for over half of digital advertising spending (55%) are expected to grow by 7.9% in revenue this year. CTV’s projected 2023 growth is 21,2%, nearly three times that of digital.
According to eMarketer, CTV ad spending is expected to reach $25 billion in this year. This represents 9.5% of the total digital ad revenues.
In contrast, social display is only expected to grow by 3.4% per year in 2023. About a quarter (25%) of digital advertising budgets are spent on social network display.
The U.S. The post U.S.