US ad spending fell 12.1% in December 2022, the sixth consecutive month in which total spending has declined, according to revised data from Standard Media Index’s US Ad Market Tracker.
The backslide continues: We cut over $5 billion from our 2023 US digital ad spending forecast, slashing it from $284.10 billion to $278.59 billion.
There are two main reasons for this downgrade:
What lies ahead: While we don’t expect ad spend to bounce back anytime soon, there are some channels that will see growth in 2023.
Connected TV (CTV), in particular, will see increased investment from advertisers this year, so much so that we increased our CTV ad spending forecast by $3 billion to $26.92 billion between April 2022 and October 2022.
The bottom line: Things are bad, though maybe not as bad as we thought. Expect tight budgets to continue through 2025, or possibly longer if the US officially dips into a recession.
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