Digital advertising has been on a tear in recent years, and that trend is showing no signs of slowing down. In 2022, global digital ad spending reach $626.9 billion, up 10.5% from 2021. And for the first half of 2023, digital ad spending is already up 8.6% year-over-year, to $313.4 billion.
There are a number of factors driving the growth of digital advertising. One is the increasing popularity of smartphones and other mobile devices. More and more people are using these devices to access the internet, and this is creating new opportunities for advertisers.
Another factor driving growth is the increasing sophistication of digital advertising targeting. Advertisers can now target their ads with unprecedented precision, based on factors such as demographics, interests, and even past purchase behavior. This allows advertisers to reach their target audience more effectively and efficiently.
As the digital advertising market continues to grow, businesses are increasingly investing in this channel. In 2022, businesses are expected to spend an average of $10,000 on digital advertising. And for the first half of 2023, businesses are already spending an average of $5,000 on digital advertising.
There are a number of different ways that businesses can invest in digital advertising. Some of the most popular channels include:
- Search engine advertising (SEA)
- Social media advertising (SMA)
- Display advertising
- Video advertising
- Email marketing
The best channel for a particular business will depend on its specific goals and target audience. However, all of these channels can be effective in reaching a large audience and driving results.
As the digital advertising market continues to grow, businesses that don’t invest in this channel will be at a disadvantage. By investing in digital advertising, businesses can reach a wider audience, target their ads more effectively, and track their results more accurately.
Here are some of the key trends in digital advertising in 2023:
- The rise of programmatic advertising: Programmatic advertising is a type of digital advertising that uses software to automate the buying and selling of ad space. This is becoming increasingly popular as it allows advertisers to reach their target audience more effectively and efficiently.
- The growth of mobile advertising: Mobile advertising is expected to continue to grow in 2023, as more and more people use their smartphones and other mobile devices to access the internet.
- The increasing importance of video advertising: Video advertising is also becoming increasingly important, as more and more people watch online videos.
- The growing use of data-driven targeting: Advertisers are increasingly using data-driven targeting to reach their target audience more effectively. This involves using data about users’ demographics, interests, and past purchase behavior to target ads more precisely.
If you’re a business that’s looking to grow your reach and drive more results, digital advertising is a channel that you should consider investing in. With the right strategy and execution, digital advertising can help you reach your target audience, drive more sales, and grow your business.
