Paid search spending is expected to reach $110 billion this year, according to a new forecast from eMarketer.
Search and retail media. Paid search represents 41.8% of total digital spend. If it reaches $110 billion, its growth will remain slightly higher (at 8.2%) than overall US digital ad spending, which is expected to increase by 7.8%.
Within search, retail media networks (RMNs) are a rising star, with 18.7% growth in retail media search. This segment is expected to reach close to $30 billion in spending by 2023.
RMN’s digital ad revenue (not just search) is poised to grow from $31 billion in 2021 to $45 billion this year. If spending continues at the current rate, it should top $106 billion by 2027.
Why we care We hope that 2023 will be a challenging year for research. There have been many changes related to generative AI and chat in search (both at Google and Microsoft Bing), and we hope to have more clarity soon on what these changes will mean in terms of engagement and ad performance. Until then, it’s good to see overall growth in paid search spending picking up, especially in retail.
Learn more about US search ad revenue. It reached a record $84.4 billion by 2022, according to IAB.
US digital ad spend. Although falling below 10% for the first time in 14 years, digital ad spending is expected to rebound to 11.2% growth in 2024, according to the forecast. Annual increases are expected to be around 10% until 2027.
Digital ad spending saw a dramatic rebound in 2021 after the initial wave of the COVID pandemic, growing by 37.6%. In 2022, the numbers dropped dramatically, with growth of 10.6%.
Digital cake cutting. Global media spending is expected to increase by 3.8% this year as investments in traditional media continue to migrate to digital.
Digital media should account for 74.6% of total media spending in the US, which is expected to reach $264 billion by 2023. The digital portion of total media spending is expected to grow to around 2% annually in the coming years.
Display and CTV. Connected TV (CTV) advertising continues to advance.
For some perspective, more than half (55%) of digital spending is on display ads whose revenue is expected to grow 7.9% this year. However, CTV’s projected growth to 2023 is 21.2%, nearly triple digital growth.
CTV’s ad spending is on pace to reach $25 billion this year and represents 9.5% of total digital ad revenue, according to eMarketer.
On the other hand, social display is only expected to grow by 3.4% by 2023. Social display advertising is about a quarter of total digital spending.
[ad_2]
Source link
