2023 US ad spend forecasts shrink but CTV holds strong - Data & Programmatic news in a nutshell
We have compiled the most important news from the data, online advertising and programmatic market from 24th November to 7th December 2022. Check out what happened in the last two weeks on the data & programmatic market.
CTV ad spending forecast increases while 2023 total ad spending forecasts decline
eMarketer just made adjustments to its latest 2023 US digital ad spending forecast. The forecast now predicts $278.59 B in US digital ad spending next year, down from the $284.10 B expected in the previous forecast.
eMarketer explains the adjustment with Apple’s privacy changes that will force social media walled gardens to adapt, macroeconomic instability, and post-pandemic ad spending normalization. But according to eMarketer research, some channels will be more affected by these factors than others. While social media ad spend forecasts decreased, the predicted CTV ad spend rose by $3.02 billion to $26.92 billion.
Magna also adjusted its 2023 media owner’s total ad revenue June forecast. Magna predicts a 5% increase in ad revenue in 2023 YoY, 1.5 percentage points lower compared to the previous forecast. The firm predicts that ad sales for linear media such as publishing and television will decline in 2023. Meanwhile, digital ad sales will grow by 8% and account for 65% of total ad sales globally.
Global CTV advertising spend expected to increase 14.4% in 2023
Amid the slower growth of the ad market overall, CTV advertising is expected to maintain double-digit growth YoY. According to IAB research, in 2023 CTV ad market will grow 14.4% compared to the 5.9% projected growth of total ad spending.
The digital video channels will dominate in media ad spending in 2023, accounting for 22.4%, while linear TV spending is expected to decrease (-6.3% YoY). Fierce Video sees this shift as a reflection of the viewers’ changing habits, with streaming services gaining more popularity than linear TV in the US.
OTT advertising revenues will hit $91 B in 2028 globally
According to Digital TV Research, global OTT revenues will grow to $243 B in 2028, with AVOD growing the most. Advertising-based Video on Demand revenue is to grow to $91 B in 2028, up by $52 B from $38 B in 2022.
The growing popularity of AVOD services is an opportunity for advertisers to benefit from one of the most popular and compelling video ad formats. Contrary to linear TV, OTT allows advertisers to pick and target specific audience segments and meticulously measure and improve campaign performance. If you’re interested in performing an OTT campaign, contact our team (email@example.com) to find the audience data segment that’s best suited to your needs, or check out our CTV taxonomy.
Google Topics and email based identity solutions with the biggest rise of marketer’s interest
A cookieless future is near. What alternatives are marketers already testing to get ready for the post-cookie era? Lotame discovered that 71% more marketers are testing Google’s cookieless solution now than last year, which is not surprising considering that Google Topics rolled out for testing only at the beginning of this year, replacing the imperfect FLoC from 2021.
Another leader among the cookie alternatives tested by marketers in 2022 are authenticated, email-based identity solutions. Although authenticated data is not as easy to obtain as the data acquired with cookies, it can effectively replace them and has gained the most popularity in 2021 among other available cookie alternatives.
The survey also identified cohorts, contextual and probabilistic targeting as the identity solutions significantly more tested by the marketers in 2022.
Cookieless advertising - Yahoo buys 25% stake in Taboola
Yahoo invested in a 25% stake in Taboola and made the firm its exclusive native advertising partner for 30 years. Taboola will power native ads across Yahoo’s websites that will be available to buy through Yahoo’s DSP.
For Yahoo the partnership is a way to improve user experience and campaign performance by developing a leading offering to advertisers, publishers, and merchants. For Taboola, it is the opportunity to grow ad revenue and expand its reach.
Connected TV trends for 2023
There are over 1 billion CTV devices in the world, Netflix and Disney+ roll out advertising offerings, and Connected TV advertisement is predicted to be a steadily growing market at least until 2028. These are sure-signs that investing in CTV ads and paying close attention to this market will pay off.
The experts from companies such as PubMatic and Xandr predict what changes await the CTV field in 2023. Simplifying will be the key. One of the trends is introducing programmatic innovations to automate the media buying process and harnessing a variety of audience data sources such as OnAudience.com.
Specialists also notice the potential of targeting options, with cross-device and omnichannel being the approach of the future. Amid the lower ad spend growth, the experts see DCO (Dynamic Creative Optimisation) as a future of CTV advertising strategy, which will help marketers optimize their Connected TV ad spend by investing smartly in the longtail, less recognised media.