The ad spend growth has hit rock bottom in 2022, but the results are not as terrible as expected. This digital storm affected social media, particularly Meta, the most. It also impacted highly challenged markets like China and Western Europe. Amid the chaos, many ad publishers are still doing fine by trying their best to cope with the current critical situation. Likewise, hope for betterment is still there as many businessmen and marketers believe that ad spend growth will do much better in 2023.
Statistics
Here are a few reliable statistics on worldwide digital ad spending from 2021 to 2026. In 5 years, factors like total ad spending, search ad spending, digital ad spending, etc. are expected to change. Here is a breakdown of digital ad spending and revenue.
Let’s talk about digital ad spending, percentage of change, and percentage of total media spending separately:
- The digital ad spending in 2021 was $522.50, which later increased to $567.49 in 2022. In 2023, the total digital ad spending is expected to reach $626.86. It will increase to $695.96 in 2024 and $765.98 in 2025.
- The percentage of change in the total ad spending was 29.5% which reduced to 8.6% in 2022. In 2023, the percentage of change will improve and reach 10.5%. In 2024, the percentage of change will be 11% and 10.1% in 2025.
- The percentage of total media ad spending in 2021 was 63.1%, which increased to 65.2% in 2022. In 2023, the percentage of total media ad spending will increase to 67.4%. In 2024, it will be 69.2% and 71.1% in 2025.
The stats clearly show that digital ad spending growth has decreased abruptly. The growth is getting slower every year and will soon become a new normal. However, there is still a need for double-digit annual growth in digital ad spending over the coming years.
Digital Ad Spend Forecast for Different Countries
The growth of digital ads will also vary in different countries. Only five countries are expected to experience double-digit growth in total media ad spending in the coming years, and India is one of those. On the other hand, 14 countries will experience double-digit growth in digital advertising, and the US is one of them.
Overall, the situation is challenging for the digital media industry. However, a few key points regarding the growth level are mentioned below:
- In 2023, five Latin American countries will show growth in digital advertising. They will appear among the top six countries that experience digital growth. Also, digital ad spending will increase by 14% in the entire region.
- Inflation is the key factor affecting the growth rate of digital media in some regions or countries. However, some regions are still showing real growth. So, there is a reduction in the growth level but not in a disturbing way as compared to the previous 2 years.
- India will win as it is expected to maintain the growth level of digital ad spending for several more years. It will become one of the largest ad markets in the world and will secure the 10th rank for the first time.
- Due to the abrupt and irregular fluctuations in the exchange rates in 2022, the situation has worsened for many countries. The local currency’s weakness is another reason that Turkey, Russia, and other countries experienced an overall negative ad spending growth rate. However, things are not as bad as they may appear. At least, the countries will be able to overcome the situation but only to some extent in 2023.
Wrapping Up
The global recession, inflation, and weak economy have affected digital ad spending and total media ad spending growth. The dynamics of the digital world have changed entirely, but there is still hope for most countries, businesses, and marketers to bounce back and recover from the significant losses they have faced. The need of the hour is to understand the challenges and complexity of the current situation to manage it accordingly.
