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Advertising Industry: Difference between revisions
→2022 Developments
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# After years of social media being one of the most powerful engines of digital ad spending growth, 2022 saw the first meaningful decline in social’s share of digital ad spending since Insider Intelligence began tracking it in 2008. This was, in part, due to the rise of retail media and connected TV (CTV), plus a radical slowdown in growth caused by ATT.<ref>https://www.insiderintelligence.com/insights/social-media-paid-ads/</ref> | # After years of social media being one of the most powerful engines of digital ad spending growth, 2022 saw the first meaningful decline in social’s share of digital ad spending since Insider Intelligence began tracking it in 2008. This was, in part, due to the rise of retail media and connected TV (CTV), plus a radical slowdown in growth caused by ATT.<ref>https://www.insiderintelligence.com/insights/social-media-paid-ads/</ref> | ||
Previously expected $33.98 billion in social network video ad spending by 2022, and that figure has now been slashed to $29.82 billion—a difference of more than $4 billion. These staggering reductions are the result of a perfect storm starting in 2021—with Apple’s rollout of its AppTrackingTransparency framework, followed by a downturn in the global economy due to persistent inflation, soaring interest rates, supply chain disruptions, and the Russia-Ukraine war. | Previously expected $33.98 billion in social network video ad spending by 2022, and that figure has now been slashed to $29.82 billion—a difference of more than $4 billion. These staggering reductions are the result of a perfect storm starting in 2021—with '''Apple’s rollout of its AppTrackingTransparency framework, followed by a downturn in the global economy due to persistent inflation, soaring interest rates, supply chain disruptions, and the Russia-Ukraine war.''' | ||
[[File:Screenshot 2024-02-07 111654.png|center|thumb|547x547px]]2. Over the full year, UK social media spend, which is a sub-category of the online display section in the report, increased by 4.9%. The overall category grew at 10% in 2022 and is projected to grow by 1.7% in 2023. Total ad spend grew 8.8% in 2022. | [[File:Screenshot 2024-02-07 111654.png|center|thumb|547x547px]]2. Over the full year, UK social media spend, which is a sub-category of the online display section in the report, increased by 4.9%. The overall category grew at 10% in 2022 and is projected to grow by 1.7% in 2023. Total ad spend grew 8.8% in 2022. | ||
* Sharp and sustained falls in social media spend – the first time this has been recorded in the UK – are likely to have been instigated by | * Sharp and sustained falls in social media spend – the first time this has been recorded in the UK – are likely to have been instigated by r'''educed advertising activity among the SMEs who comprise a ‘long tail’ of ad volume on social platforms and whose margins are under incredible stress as inflation''' bites | ||
* The decline in the latter half of 2022 also coincides with a period of unrest within the wider social media ad landscape.<ref>https://www.marketingweek.com/social-media-ad-spend-drops/</ref> | * The decline in the latter half of 2022 also coincides with a period of unrest within the wider social media ad landscape.<ref>https://www.marketingweek.com/social-media-ad-spend-drops/</ref> | ||
3. | 3. Digital ad revenue in the U.S. rose 10.8% to $209.7 billion last year as marketers continued to spend in online channels despite slower economic growth, market uncertainty and mass layoffs at big tech companies, according to a new report from the Interactive Advertising Bureau and PricewaterhouseCoopers LLP. But the increase was smaller than the 35% leap seen in 2021. <ref>https://www.wsj.com/articles/digital-ad-revenue-grew-again-in-2022-but-much-more-slowly-41485957</ref> | ||
In addition to broader economic uncertainty, which led some companies to draw back on marketing budgets in the last part of 2022, the '''online ad business has been grappling with evolving privacy regulation and increased consumer privacy protections from companies such as Apple Inc., which some industry players say have made it harder to target messages and measure their efficacy.''' | |||
Social media ad revenue grew 3.6% in 2022, a slowdown in growth from 39.3% a year earlier, according to the new IAB report, as privacy protections affected companies in the sector in particular. <blockquote>“Social media, of all the different kinds of [media] types that we looked at, was the most adversely affected in 2022” as a result of tech platform policies, Mr. Cohen said. </blockquote> | |||
==== Public Companies ==== | ==== Public Companies ==== | ||