With ad dollars tight, marketers are focusing spend on areas where they have the most control. For that reason, programmatic is still in decent shape despite an overall ad downturn.
In her “Programmatic Ad Spending Forecast Q1 2023,” our analyst Evelyn Mitchell attributed programmatic display’s prowess to the category’s spending flexibility, low upfront costs, and its use of third-party cookies. But that last advantage could change when Chrome deprecates cookies next year.
Programmatic ads will account for 91.1% of digital display ad spend in the US this year, compared to 80.7% in China, according to our forecast.
Overall display ad spend in China is also far lower. It will hit $84.62 billion in 2023, about half of total spend in the US.
US native ad spending will account for 59.7% of total display ad spending this year as advertisers pivot from social media. In its place, connected TV (CTV) and mobile in-app video are taking over, part of a greater trend of display advertising pivoting to video.
Display ad spending accounts for an increasing portion of ecommerce channel ad spend, a large subset and close proxy of retail media, though search is also growing steadily.
Just like with overall digital display, expect retail media to double down on video, with Amazon and The Kroger Co. both focusing on CTV ads.
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