- Overall digital ad spending will increase by 12.0%, while CTV will increase by 27.2%—a figure that shows signs of promising growth.
- Click and collect will proliferate and become entrenched for grocery sales, but fade for others.
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2022 was a turbulent year that stunted growth across industries—including ecommerce, advertising, social, and tech—and 2023 isn’t shaping up to be much better. Instead, we expect the year ahead to usher in more change in consumer purchasing habits and media consumption, forcing marketing leaders to stay agile.
It’s not all bad news, though. As it turns out, some digital metrics are still showing signs of hope. Here, we highlight a handful of silver linings that might have been lost in the gloom of an economic downturn.
CTV ad spending growth overtakes overall digital growth
Connected TV faces a bright future, with people spending more time streaming than ever and platforms like Netflix and Disney+ rolling out new ad opportunities.
This year, US connected CTV ad spend will hit $26.92 billion. This market has grown by double digits each year since Insider Intelligence began tracking it in 2017, and it will continue to do so through the end of our forecast period in 2026.
The competition, however, is fierce, with dozens of service providers vying for their share. The largest shares will go to Hulu (13.8%), YouTube (11.7%), and Roku (9.5%).
Digital grocery shopping is booming
The revenge of brick-and-mortar and the return to in-store shopping has constrained click and collect’s popularity in categories like consumer electronics, home furnishings, and apparel. But more and more buyers are embracing the idea of having someone else pack up their groceries.
Since 2020, grocery has driven more than half of click-and-collect sales each year, per our estimates. By next year, more than $3 out of every $5 spent via click and collect will come from grocery.
In fact, digital grocery shopping is booming in general. In 2023, grocery ecommerce sales will increase by 14.8% (to $160.91 billion), outpacing overall ecommerce, which will increase by just 10.5%.
Mobile app install ad spend is on the rise
Mobile app install ad spending spiked by 24.8% last year, far outpacing overall digital ad spending, which increased by just 12.5%. This year, the gap will be smaller but still noteworthy, with mobile app marketers shelling out 15.5% more than in 2022, compared with overall market growth of 12.0%.
Insider Intelligence expects Apple to secure the largest share of new spending in this category for years to come. Apple is so dominant in this one sphere that it is already on the way to becoming a global ad publishing giant. This success will lead the company to pursue new and potentially disruptive routes to additional ad revenues in the coming years.
This analysis is part of Insider Intelligence’s Forecast Trends to Watch for 2023 report, which contains more insights and data to help guide your business strategies. To preview the full report, click here.