A report by OnlyAccounts has revealed that brands and companies worldwide will spend roughly $680bn on digital ads in 2023, 10% more than a year ago. This figure is expected to jump by another 35% and hit $910billion by 2027.
This is even as the data it presented shows that over the past six years, brands and marketers worldwide have spent a whopping $3.2 trillion on digital ads, with video ads, search ads, and banners as the top three revenue streams.
According to the report, Influencer Advertising is the Fastest Growing Segment as Total Ad spending to Grow by 55% by 2027.
After five years of double-digit growth rates, total ad spending in the digital advertising industry significantly slowed down last year. Still, brands and marketers are spending more money on digital ads than ever.
According to a Statista survey, last year, companies and brands worldwide spent nearly $615bn on digital ads, 8.1% more than a year before and more than double the ad spending reported in 2017. This figure is set to grow by a further 10.6% and hit $680bn in 2023. And while Statista expects the annual growth rate to drop to 6.5% in the next four years, total ad spending in the market will still jump to an impressive $910bn.
Although far below banner, video, and search advertising when it comes to total ad spending, influencer advertising will see the biggest growth in this period. With budgets growing fast and marketers seeing strong returns and increased customer trust, the total ad spending on this type of ad is expected to jump by 55% in the next four years, growing from $30.8bn in 2023 to $47.8bn in 2027.
Search ads, the market’s largest revenue stream, will see the second-largest growth of 39%, with total ad spending jumping from $279bn to nearly $390bn. Video and banner advertising followed with 30% and 27% growth rates in this period.
Analyzed by geography, the United States will remain the world’s largest digital advertising market. In 2023, the total ad spending in the US market hit $271bn or 40% of the world’s total. This figure is set to reach more than $376bn by 2027. As the second largest globally, the Chinese market will see a 33% growth in this period and $231bn in total ad spending, up from $173bn this year.
The United Kingdom follows with roughly $52bn in ad spending by 2027 and a 28% growth rate in the next four years.
The Statista survey also showed that mobile ads will continue bringing far more revenue than desktop ads. Three years ago, 53% of the total digital ad spending was generated through mobile devices. Since then, mobile ads have significantly increased their market share, which now stands at 64%. Statista expects this figure to continue growing in the next four years, with mobile ads making 69% of total ad spending in the market.
Statistics also show that 81% of global advertising revenue in 2027 will be generated through programmatic advertising, only one percent more than this year.
