The Outlook for Data Driven Advertising & Marketing 2020 sees “high probability for solid growth”;...
Winterberry Group Research Finds U.S. Advertising and Marketing Spend Expected to Surpass $500 Billion in 2023
The research finds that advertising and marketing will see a shift within digital, even more important than the shift to digital. Additionally, the modernization of data infrastructure continues as artificial intelligence and machine learning solutions require speed and power.
NEW YORK, Jan. 18, 2022 – Winterberry Group released new research, “The Outlook for Advertising, Marketing and Data 2023.” The annual research led by Senior Managing Partner, Bruce Biegel, provides the spending forecasts and reviews the trends that are driving the U.S advertising, marketing and data spend in 2023.
This year Winterberry Group estimates advertisers will spend an estimated $509.2 billion, an increase of 5.89 percent from 2022 ($480.8 billion). Just over 60 percent of the total spend ($307.3 billion) is expected to occur via online channels. The channels expected to see significant growth include CTV, Digital Out-of-Home (DOOH) and Influencer. CTV is expected to grow at a rate of 27 percent while Digital Out-of-Home and Influencer channels are growing at rates of 10 and 17.5 percent, respectively. Offline total spend is estimated at $201.9 billion, with Newspaper, Magazine, Radio and Linear TV being the top channels expected to decline at rates between one and 8 percent.
“The rising cost of digital media and shifting consumption patterns is encouraging marketers to shift spend not just amongst channels, but among providers who have the ability to target hard to reach niche audiences” said Biegel. “We expect the growth rate of digital channels to decelerate but remain strong. Offline bright spots for marketers include experiential marketing as events return and direct mail, as a predictable performance media channel.”
Winterberry Group’s 2023 Outlook delves into the complex data segments including data, data services, identity and platforms which is forecast to grow to $34 billion, up 7.4% from 2022. The increase is led by the rise of data-driven digital media ad spend and a focus on analytics, data infrastructure, identity and the need to build first-party, consent based relationships. Winterberry Group expects to see a continuous investment in data infrastructure including connected data platforms (CDPs), clean rooms, and cloud provider solutions. As first party data sets grow, the demand for CDPs that are compliant and secure will increase. Integrating first and third-party data and identity will evolve the data infrastructure landscape.
“The Outlook for Advertising, Marketing and Data 2023” is available for download at: https://www.winterberrygroup.com/insights-library/the-outlook-for-advertising-marketing-and-data-2023
About Winterberry Group
Winterberry Group is a specialized management consultancy with deep experience in advertising, marketing, data, technology, and commerce. Winterberry Group’s proven methodologies address the needs of firms in its core sectors, enabling brands, publishers, marketing service providers and technology developers – and the investors in the market to understand emerging opportunities, create actionable strategies and grow their value and global impact. For more information, please visit www.winterberrygroup.com and follow us on LinkedIn and Twitter @WinterberryGrp.