蘑菇AV

Our latest forecast predicts $278.59 billion in US digital ad spending next year, down from the $284.10 billion expected in our previous forecast鈥攁 setback of $5.51 billion. Budget cuts will affect some channels more than others. Social networks will be hit the hardest as major platforms struggle to adapt to Apple鈥檚 privacy changes.

US ad spending fell 12.1% in December 2022, the sixth consecutive month in which total spending has declined, according to revised data from Standard Media Index鈥檚 US Ad Market Tracker. To no one鈥檚 surprise, inflation continues to take its toll. But things may not be as bad as we thought.

US digital ad spend reached a compound annual growth rate (CAGR) of 13.5% during the years of the pandemic from 2019 to 2023, per our estimates. From now until the end of our forecast period in 2027, the CAGR will dip below 10% for the first time in more than a decade to 9.3%. Next year, US digital ad spend will hit $306.94 billion, up from $270.24 billion this year. 2.

US retail media ad spending will grow 25.8% next year to $51.36 billion, making up 18.1% of total US digital ad spend. Streaming鈥檚 AVOD craze: Eager to grow revenues and subscribers, streamers turned to ad-supported subscription tiers, opening up new channels for advertisers and claiming share from TV.

Two years ago, the category slumped to a 1.8% growth rate amid a turbulent stretch for the major US telecom companies. But a turnaround began last year, and this year we expect the reinvigorated competition between the likes of Verizon, AT&T, and T-Mobile to push the industry over $20 billion in digital ad spending for the first time.

Walmart is well-positioned to gain a larger share of US digital ad spending given the deprecation of cookies and third-party identifiers, plus growing privacy legislation and regulatory constraints. We expect that Walmart鈥檚 US net ad revenues will account for an 8.2% share of US retail media digital ad spending by 2024.

US retail media ad spend will hit $45.15 billion this year, an increase of almost 20% over 2022, according to our forecast. Growth will accelerate each year through 2027, when we expect spend to reach $106.12 billion.

Walmart will net $2.22 billion in US digital ad revenues this year, per our forecast.

The news: Google wrapped up its second day of defending itself against US Department of Justice charges on Monday, a case that could reshape the future of big tech. Here are the five arguments we believe Google should make in the antitrust case over its ad tech to boost its chances of a favorable outcome, though these do not necessarily reflect our views. #1: Market Competition and Innovation.

US retail media ad spend will more than double between 2023 and 2027, reaching a total of $109.40 billion, according to our forecast.

US ad spend dropped 8.0% YoY in February, according to a MediaPost analysis of Standard Media Index鈥檚 US Ad Market Tracker. That marks eight months of consecutive YoY decline as part of a trend that began in July 2022.

US retail media growth will reach $45.15 billion in 2023, an increase of nearly 20% since 2022, according to our forecast. Growth is expected to accelerate until 2027, when US retail media ad spend is poised to reach $106.12 billion鈥攎ore than a quarter (26.9%) of US digital ad spend. Listen to the full podcast. This was originally featured in the Retail Daily newsletter.

We lowered our expectations for digital ad spending next year amid ongoing data privacy challenges, post-pandemic normalization in investment, and overall market instability.

Our forecast data reveals a mismatch between marketers who have been quick to transition to digital platforms, and consumers who are still spending time on traditional media like TV, newspapers, and radio. This year, 74.6% of all US ad spending will go toward digital media, while US adults will only spend 62.1% of their daily media time with digital, according to our forecast.

Email marketing is the top area where US B2B and B2C marketers have increased their direct marketing budget in the past 12 months (62%), according to a survey from SeQuel Response and ISG.

Consumer attention is fragmented and getting shorter. At the same time, digital ad spend growth is slowing following a pandemic surge. That means marketers must be agile and strategic with their spending.

蘑菇AV 1 in 6 US adults are Gen Zers. With the youngest of the cohort turning 12 in 2024, Gen Zers are growing up. Adult Gen Zers now constitute 17% of the US adult population. As the older members of this generation age further into adulthood and the workforce, their purchase habits will help shape larger consumer trends. Pay TV鈥檚 decline continues.

Microsoft鈥檚 share of total US digital ad spend is growing, and will hit 4.1% in 2025, a total of $13.23 billion, according to our forecast. That鈥檚 up from 3.7% this year, or a total of $9.79 billion. This year Microsoft鈥檚 ad revenues will increase 8.9% YoY. Next year growth will increase to 16.6% YoY. Here are some updates worth watching. Audiences.

Explore our complete forecast for US search ad spending here. Search鈥檚 share of digital ad spending is leveling off. Over the past decade, budgets have slowly shifted to display. Search peaked at 48.9% of digital ad spending in 2014. Since then, growth in ad spending on video formats across social media and connected TV has taken off.