The news: 2022 was a historic year for advertising. The pandemic-driven boom in impressions slowed down, prompting a dramatic pullback in ad spending that many were unprepared for. But out of the downturn, new trends and leaders are beginning to emerge.
Don’t be fooled by the panic: While slower than expected, ad spending still grew in 2022, , and will continue to grow moving into 2023. GroupM is forecasting a 5.9% increase in 2023, down from 6.4% in June. Magna had a steeper drop of 6.3% to 4.8%. Our own October forecast predicts growth of 6.9% to $929.95.
The big downturn: An adjustment from pandemic-level highs collided with economic uncertainty and persistent issues with advertising addressability to throw the ad industry into disarray, disrupting long-established norms.
The staples: Amid all this, some advertising channels proved resilient.
Streaming’s AVOD craze: Eager to grow revenues and subscribers, streamers turned to ad-supported subscription tiers, opening up new channels for advertisers and claiming share from TV.
Our take: Out of a downturn comes opportunity for new ad tech players, for brands to establish themselves with consumers, and for new ad channels to stake their claim. 2023 will see slower growth than the industry had become accustomed to during the pandemic years, but the downturn is giving way to new normals that will define the industry going forward.