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ChatGPT, TikTok ban, and more: 5 charts to prepare marketers for the rest of 2023

Summer is on the way, and the advertising landscape has already changed significantly since the year’s start. We checked in on data surrounding the biggest trends, including AI search (which is happening whether consumers want it or not), a TikTok ban (no one knows but be prepared), retail media (it’s exploding), and more.

1. Google faces Microsoft in the race for AI search

Google will probably come out triumphant due to its search dominance, but Microsoft has buzziness on its side right now with its ChatGPT partnership.

While 56% of US adults surveyed by Ipsos have concerns about generative AI content’s biases, the tech will barrel forward, especially within search. That’s a scary reality for publishers, who may see a dip in traffic.

2. TikTok alternatives prepare for a ban

TikTok is banned on government devices in many states, and could be banned in Montana soon. If that happens, state bans could ripple across the country.

That’s good news for Instagram, which already has the next closest thing to TikTok in its Reels feature and currently boasts the highest penetration of users who are also on TikTok. YouTube would also benefit from a TikTok ban due to its Shorts offering.

3. Retail media ad spend will double by 2027

Retail media isn’t a passing trend. Advertisers are spending more on retail media due to its ability to target consumers effectively and push them closer to the point of purchase. In an advertising landscape devoid of clear data, expect marketers to double down on retail media.

4. Digital video will pass TV this year

This year, for the first time, US adults will spend more time with digital video than with TV. The biggest share of digital video’s average 3 hours, 11 minutes of daily viewing time will happen on connected devices like smart TVs and game consoles. This could combine with the retail media trend above to result in an influx of retail media connected TV advertising.

5. Twitter’s ad revenues slump by nearly $2 billion

We downgraded this year’s projected ad revenues for Twitter from $4.74 billion to $2.98 billion after Elon Musk took over the platform. Musk slashed three-quarters of Twitter’s staff, made only $11 million in revenues from Twitter Blue in its first three months, and allowed a slew of brand safety issues to fester on the platform.

While Twitter still allows brands to exercise their voices and communicate directly with consumers via owned accounts, paid ads on the platform may be risky right now.

This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.