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Digital Advertising Trends to Watch for 2023

Macroeconomics Weigh on Budgets as Advertisers Dawdle on Privacy Preparation

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

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.

Digital Ad Spending Downgraded Amid Economic Instability

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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Table of Contents

  1. Digital Ad Spending Downgraded Amid Economic Instability
  2. Advertisers Aren’t Prepared for Privacy Legislation
  3. Big Tech Will Actually Solve the Content Moderation Problem … or Else
  1. Retail Media Platforms Will Diversify to Compete With Amazon
  2. Read Next
  3. Sources
  1. Media Gallery


Evelyn Mitchell


Tracy Tang
Senior Researcher
Paul Verna
Principal Analyst
Max Willens
Senior Analyst
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