Print, television, Google, Facebook, Instagram, TikTok, email, video, audio, apps, websites – the range of advertising channels available today is extensive and continuously expanding. With so many options to choose from, it can be challenging to decide where to invest your advertising budget in order to reach the right audience. Should you opt for traditional print ads or go for a Facebook ad? Perhaps you should try creating TikTok videos? Or maybe you could leverage cross-channel advertising platforms to run ads across various digital media. On top of all this, you also have to consider factors such as limited budgets, time constraints, competition, and the difficulty of capturing and retaining people’s attention. How can you run a profitable ad campaign under these circumstances? Fortunately, we have compiled a list of current advertising trends supported by data to help you develop a successful advertising strategy for your business.
Global ad spending statistics reveal that the advertising industry is experiencing growth despite economic uncertainties, and this trend is expected to continue in the upcoming year due to major events like the Paris Olympics and Paralympics, UEFA Euro, and the US presidential election. It is predicted that global ad spend will increase by $23 billion to reach $727.9 billion in 2023, and this growth will further accelerate by approximately 5% to reach $762.5 billion in 2024.
Understanding where advertisers allocate their budgets is crucial for industry professionals and businesses alike, as it enables them to make informed decisions about advertising strategies for the year. From traditional platforms such as TV and display ads to digital frontiers, these statistics shed light on the strategies and preferences that are shaping the advertising ecosystem. Specifically, digital ad spending is projected to grow by 7.8%, more than double the rate of the overall market, to reach $424.3 billion in 2023. Emerging digital categories like retail media and connected TV are expected to experience double-digit growth rates of 18% and 15.2% respectively in 2023. Search advertising spending is set to expand by 8.9% to reach $150 billion. Conversely, TV ad spending is predicted to decline by 3.1% to reach $170.2 billion this year, and spending on print advertising will also decrease by 5% to $48.4 billion in 2023. On the other hand, out-of-home (OOH) advertising, which includes billboards and other ad placements, is expected to grow by 13.4% to $35.6 billion in 2023. Additionally, digital out-of-home ad spending is forecasted to increase by 26.1% to $13.3 billion.
Digital advertising, also known as online advertising, plays a critical role in business strategies today, as it allows companies, whether B2B or B2C, to connect with their target audiences on a global scale. Given that there are over 5 billion internet users worldwide, digital channels have become essential for businesses to establish brand awareness. The following statistics highlight various aspects and evolving trends in digital advertising:
– Digital advertising has the potential to increase brand awareness by a significant 80%.
– In 2023, 70.5% of advertisers received a larger digital ad budget compared to the previous year.
– A quarter of advertisers expect their digital ad budget to increase by 10-40% in 2023.
– The top four digital channels that advertisers will invest in this year are display ads, social media, video, and search.
– Leading digital platforms used by advertisers include Google, Spotify, Microsoft, LinkedIn, Meta, X (formerly Twitter), and Pinterest.
In the digital ad market, a few major tech companies dominate the landscape. Google holds the top position, with an expected 39% share of the global digital advertising revenue in 2023. Its parent company, Alphabet, earned $112.7 billion in revenue from Google advertising channels in the first half of 2023 alone. Facebook follows closely behind with a projected digital ad revenue share of 18% in 2023, while Amazon ranks third with an expected 7% share. Asian players like TikTok, Baidu, JD.com, and Tencent also have a presence, each with a 2% share. In terms of revenue, Google is projected to reach $357 billion in digital ad revenue by 2026, accounting for 44% of the total global digital ad market. Facebook is expected to reach nearly $203 billion in advertising revenue by the end of 2026.
Search advertising, which involves placing digital ads in search engine results, is the largest segment within the digital ad market, with a market volume of $202.40 billion. Notably, 56% of US consumers begin their search for online shopping on Amazon, while 42% start their search on a search engine. Pay-per-click (PPC), a major component of search advertising, generates twice the volume of visitors compared to search engine optimization (SEO) for organic search results. Google Ads, the leading search advertising platform, boasts an average conversion rate of 7.04% and a click-through rate of 6.11% in 2023. The average cost per click (CPC) in Google Ads for 2023 is $4.22.
Mobile advertising, which targets audiences through mobile devices, is a crucial aspect of digital marketing. With more than 7 billion people using mobile phones worldwide and spending an average of 3.5 hours on their devices, businesses recognize the importance of mobile advertising. Mobile searches account for over half of the total searches on Google.com, and mobile ad spending in the US is expected to reach approximately $194 billion in 2023. Augmented reality (AR) mobile ads are gaining traction, with the AR mobile ad market projected to reach nearly $10 billion by 2026.
Video advertising has become a staple in digital marketing strategies, thanks to the popularity of streaming platforms and social media. Key statistics surrounding video advertising include the fact that people watch an average of 17 hours of online videos per week, 87% of US households have a connected TV, and 90% of consumers watch videos on YouTube. Watching a video has convinced 89% of people to make a purchase, and 79% of people say they get a good return on investment from video ads. In 2022, 46% of marketers created video ads, and 91% of businesses use video as a marketing tool.
In conclusion, advertising channels are constantly evolving, and businesses must stay informed about current trends and preferences to create successful advertising strategies. Digital advertising continues to grow, with substantial investments being made in channels like search advertising, mobile advertising, and video advertising. Major tech companies, such as Google, Facebook, and Amazon, dominate the digital ad market, while emerging platforms like TikTok also gain traction. By understanding the statistics and data surrounding global ad spend and digital advertising, businesses can make informed decisions and allocate their budgets effectively to reach their target audience and achieve profitable ad campaigns.