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All participating retailers have a shopper marketing or co-op marketing program, as well as a monetization program that's incremental to their shopper marketing. All participating brands categorize themselves as either consumer packaged goods (CPG) or consumer brands.

Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024. Even when taking time spent into consideration, audio advertising remains low. Digital audio will earn 5 cents per user hour in 2024, compared with 8 cents for radio and 21 cents for TV.

Even Facebook recently announced creators as one of its four areas of focus for 2023, along with AI, messaging, and monetization. Creators are deeply rooted in many aspects of business and society. Some, like the D鈥橝melio family, have become startup investors themselves. In 2023, we expect more creators to launch their own brands and monetize outside of the bounds of social media.

The strong growth in social media monetization tactics like tipping, subscriptions, and merchandising indicates a growing willingness among consumers to spend their money on creator content and products. That has a ripple effect on marketers, as consumers may spend less on other goods and services.

Meta鈥檚 powerhouse ad platform also gives it a leg up in monetization as genAI search advertising gains steam. Meta is a staple in most marketers鈥� ad strategies and will account for 22.8% of worldwide digital ad spending in 2024, per our forecast. Both Facebook and Instagram already offer some search ad placements, while WhatsApp monetizes via business messaging tools.

鈥淩egardless of each company鈥檚 motivation, the convergence of SVOD CPMs around a down-to-earth mean should spur growth in ad 尘辞苍别迟颈锄补迟颈辞苍,鈥� according to Verna. This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Instagram is poised to sustain its lead with the help of the potential for high-paying partnerships and its more recent performance-based monetization program. That said, TikTok is not far behind Instagram, as 89.6% of US creators will share sponsored video content on the platform this year.

While Musk has said he plans to improve creator monetization on the platform to attract creators, Twitter鈥檚 new ad revenue-sharing program for reply tweets won鈥檛 been enough to move the needle for most, and creators must sign up for Twitter Blue to be eligible. Twitter lags in social video. The single biggest driver of time spent on social media is video.

During the earnings call, Meta鈥檚 Li sidestepped an analyst question about Marketplace monetization, saying that 鈥淢arketplace is one prong in a broader commerce strategy.鈥�. Meta allows advertisers in most industries to place ads in Marketplace, but most shopping is consumer-to-consumer. Advertisers also have the option to run ads in Facebook Groups鈥� feeds.

YouTube is doubling down on CTV monetization and time spent. YouTube鈥檚 focus on the living room screen has allowed its CTV growth to outpace its overall ad business on a net basis, per our forecast. That will change in 2024 as CTV bumps up against more competition and YouTube scales up its Shorts business.

Despite AI鈥檚 buzz, that鈥檚 a challenging prospect: Monetization has lagged behind AI development, and Meta has already run into notable content moderation issues involving the tech.

The picture-in-picture format could be a promising solution for YouTube to increase livestream monetization, while reducing the risk of losing viewers. What it means for advertisers: Because YouTube鈥檚 new format makes it less likely to skip or ignore the ads, advertisers should capitalize on the less-intrusive experience by creating compelling, contextually relevant ads that complement the livestream.

The post-ATT transition has been expensive and requires a full-scale reimagining of game monetization. Large platforms, such as Roblox or Ubisoft, have moved most quickly, but they鈥檒l eventually be joined by smaller ones as the prospect of brand dollars grows. It鈥檚 a virtuous cycle for brand advertisers. Explore AI鈥檚 impact on the burgeoning video ad space.

Retail media clearly has a longer runway on ad monetization. Retail media is better positioned to increase ad loads than search and social because many RMNs are still maturing and enabling more inventory. Walmart鈥攖he No. 2 to Amazon among RMNs鈥攊mplemented a second-price auction and search algorithm changes in early June 2022 that drove down CPCs, according to Skai.

In the wake of ATT, app developers are merging with app monetization platforms and clustering apps into ad networks, effectively pooling first-party data for targeting and measurement. The open exchange is losing share across all devices.

鈥淵es, they have a higher level of complexity because they must balance the customer experience with monetization, but they鈥檙e really excited about the opportunity because the revenue potential is obvious.鈥�. Brands, however, are a little harder to convince, said Nickell. Most of the momentum from brands exploring in-store retail media has come from brands outside of the CPG category.

Only Meta seems to have figured out how to transmute user engagement into outsize monetization. TikTok is heading in the right direction but has a long way to go. TikTok鈥檚 ad revenue growth will greatly exceed its time spent growth this year and for the next several years, so its ratio in the chart above is set to improve.

Unlike Twitter, Meta isn鈥檛 trying to overhaul its monetization model, and any revenues it generates from Meta Verified would just be nice padding on its ad business. Meta Verified is also closer to providing real value for subscribers than Twitter Blue鈥� with less controversy鈥攁nd at under $150 per year, it may be worth it for creators looking to build their brands and audiences on Instagram.

One way Meta is trying to shore up monetization around Reels is by building measurement standards. The company announced it is working with the Global Alliance for Responsible Media (GARM) and the World Federation of Advertisers (WFA) on a measurement standard for Reels. Meta finds a bug in its Apple.

鈥淲e wanted to understand what makes us differentiated,鈥� said Melanie Babcock, vice president of Orange Apron Media and monetization, of the rebrand. 鈥淎nd it鈥檚 really about our service model and how we use service as a lens to view our products and experiences.鈥�.

鈥淢ost retail media [networks] are focused on performance marketing on their first-party websites,鈥� Mario Mijares, vice president of insights, loyalty, marketing, and monetization platforms at 7-Eleven, said at Advertising Week New York 2023. 鈥淲e鈥檙e not doing that. Our focus is connecting our database to third-party platforms and in-store for top-of-funnel and mid-funnel marketing.鈥�.

But Mitchell-Wolf said advertisers lacked visibility into its monetization. 鈥淭he 2 billion figure鈥攜es, it鈥檚 a milestone, but it鈥檚 also Google choosing to focus on this stat, and it鈥檚 crafting a narrative over the long term, choosing to deploy certain numbers at certain times to placate investors.鈥�. Analyst insight: Mitchell-Wolf said YouTube鈥檚 growth was 鈥渉eartening.鈥�

The big red flag for future monetization growth is that Meta continues to expect time on Reels to monetize at a lower rate than its Stories and Feed, since people tend to scroll more slowly through video content. Time spent is another factor: US adult Instagram users will spend 33.1 minutes per day on the app this year, well below the 53.8 minutes TikTok users spend, according to our forecast. 2.

But even so, I do think that we're getting to a point where Meta has to be thinking about monetization. (15:34):. And I don't necessarily think that they're going to go in with sort of the types of ads and the ad load that you see on an Instagram or a Facebook. I think they're going to be a little bit smarter about it, introduce them a little bit more thoughtfully.

There鈥檚 also the question of monetization. OpenAI loses money on every user query鈥攁nd there isn鈥檛 a clear path toward profitability. Global search advertising spending will total $282.36 billion in 2024, per our forecast, so it鈥檚 likely that OpenAI will monetize with ads, but it鈥檚 unclear if the market will support the somewhat untested format.