Digital advertising will face another turbulent year. Macroeconomic conditions continue to deteriorate, with advertisers reducing spending on some channels more than others. Meanwhile, privacy enforcement is heating up, but advertisers aren’t prepared for new legislation. Big changes in content moderation could result from US Supreme Court decisions. And Amazon’s competitors in the retail media space are beefing up their offerings.
Advertisers are scrutinizing their budgets. With inflation driving up operating costs and a potential recession looming, marketing is getting deprioritized. Our current outlook: Ad spending won’t bottom out. 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—a setback of $5.51 billion.
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