Ad spending to increase by 5.9% in 2023

Ad spending to increase by 5.9% in 2023

According to IAB’s ad spending outlook, media ad spend will increase by 5.9% in 2023, year-overyear. IAB highlights several high-growth categories, led by B2B (up 20.8%), travel (20.6%), restaurants/beer/wine/liquor (17.1%) and financial services (11.1%).

CTV is projected to grow at 14.4%, making it the fastest-growing channel. While digital channels will see an increase in spending, traditional channels will drop in 2023.

Retail media networks. Nearly three-quarters (61%) are looking at placing ads in these media networks.

Therefore, retail media network spend is expected to rise 28.4% YoY by 2023.

For placing these ads, agencies and advertisers will use primarily retailer-owned (75%) or aggregated (82%) marketplaces. Ecommerce-owned partners can also be used (64%).

91% of advertisers also want to use the retail media network for onsite advertising.

Deeper: Why retail media networks matter to us

Ads goals. Customer acquisition is the top goal of advertisers when it comes to media investment. Agencies and advertisers also mentioned increasing brand equity (43%), and improving media efficiency (35%).

Advertisers also want to make more of their advertising campaigns. This means they will spend more time on measurement, first party data, and creators. Nearly half of respondents said that they would make greater efforts in these areas by 2023.

This survey was completed by more than 220 buy-side decision-makers in ad investment at brands, agencies, and consultancies.

Why do we care? These are bright projections, especially for people in CTV, B2B and retail media networks.

However, the YoY growth projections are 5.9% lower than 2022’s growth of 9%. Many advertisers are paying attention to their budgets and preparing for any unexpected bumps. The digital transformation of advertising is continuing, with the ongoing acceleration of digital-out-of-home. Advertisers are paying attention.

Another trend to be on the lookout for is convergence of the top-growing areas according to the IAB projection — CTV and B2B. Top B2B brands such as Salesforce were ramping-up their video content hubs last year. B2B advertisers are very keen to engage streamers, and CTV is the channel for it.

Get to know How to bring your ABM strategy into the world of CTV

The post Ad Spend Proposed to Grow 5.9% in 2023 was first published on MarTech.