Ad spend projected to grow 5.9% in 2023

Marketing

Media ad spend in 2023 will grow 5.9% overall, year-over-year, according to IAB’s ad budget outlook. IAB highlights several high-growth categories, led by B2B (up 20.8%), travel (20.6%), restaurants/beer/wine/liquor (17.1%) and financial services (11.1%).

CTV is expected to be the fastest-growing channel, with projected sales up 14.4%. All other digital channels are expected to see some increase in spend, while traditional channels will decline in 2023.

Retail media networks. Nearly two thirds (61%) of these decision makers are considering placing ads in retail media networks.

As a result, spend on retail media networks is expected to climb 28.4% YoY in 2023.

Advertisers and agencies will primarily use retailer-owned (75%) and aggregated (82%) marketplaces to place these ads. Ecommerce-owned partners will also be used (64%).

Also, 91% of advertisers are looking to leverage the retail media network with onsite ads.

Goals for ads. The top goal for advertisers with their media investment is customer acquisition (61%). Other top goals mentioned by advertisers and agencies was increasing brand equity (43%) and improving media efficiency (35%).

Advertisers are also looking to get more out of their ad campaigns by spending more time on measurement, first-party data and creators. Roughly half of those surveyed said they’d make a greater commitment to these areas in 2023.

Why we care. These are sunny projections, especially for those in B2B, CTV and retail media networks.

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