Beneath the staggering trillion-dollar flow of global advertising spending, a fierce and fascinating revolution is underway, as revealed by new data showing digital channels like programmatic and retail media rocketing upward while traditional formats like print struggle to hold ground.
Key Takeaways
- In 2023, global advertising expenditure totaled $963.4 billion, marking a 7.9% increase from the previous year driven by recovery in key markets like the US and China.
- US digital ad spend reached $309 billion in 2023, accounting for 81% of total US ad market revenue.
- Programmatic advertising accounted for 81.2% of US digital display ad dollars in 2023, up from 77.5% in 2022.
- Mobile ad spend globally hit $362 billion in 2023, 62% of digital total.
- Google Ads generated 46% of publisher ad revenue in 2023, totaling $224 billion.
- Facebook ad revenue was $132 billion in 2023, with 98% from ads.
- Traditional linear TV ad spend in Europe fell 5.2% to €45 billion in 2023.
- US national TV ad spend was $52.6 billion in 2023, down 7.1% YoY.
- Radio ad revenue share of total US ad market was 2.5% in 2023 at $3.8 billion.
- 91% of global consumers are influenced by ad exposure to purchase decisions in 2023 surveys.
- 64% of shoppers say ads affect brand choices, with 41% buying advertised products weekly.
- Ad recall rates for TV spots averaged 25% unaided in 2023 US studies.
- ROI for digital display ads averaged $2 return per $1 spent in 2023.
- TV ads delivered $5.20 revenue per $1 spent for CPG brands in 2023.
- Search ads had 11:1 ROI ratio in US e-commerce 2023 benchmarks.
Global advertising grew robustly in 2023, driven by digital channels like retail media and connected TV.
Ad Spending
- In 2023, global advertising expenditure totaled $963.4 billion, marking a 7.9% increase from the previous year driven by recovery in key markets like the US and China.
- US digital ad spend reached $309 billion in 2023, accounting for 81% of total US ad market revenue.
- Programmatic advertising accounted for 81.2% of US digital display ad dollars in 2023, up from 77.5% in 2022.
- Retail media networks saw global spend grow to $100 billion in 2023, a 22% year-over-year increase.
- Connected TV (CTV) ad spend in the US hit $25.2 billion in 2023, representing 85% growth from 2022.
- Global out-of-home (OOH) advertising revenue grew by 10.8% to $32.5 billion in 2023.
- Social media ad spend worldwide reached $207 billion in 2023, with Facebook and Instagram leading at $132 billion combined.
- Search advertising generated $144 billion globally in 2023, dominated by Google with over 80% market share.
- Audio advertising spend in the US increased 12% to $5.2 billion in 2023, fueled by podcast growth.
- Print newspaper ad revenue fell to $8.1 billion in the US in 2023, down 6% from prior year.
- Magazine ad pages in the US declined 4.2% in 2023, with revenue at $12.4 billion.
- Cinema advertising spend grew 15% globally to $4.2 billion in 2023 post-pandemic recovery.
- Direct mail ad spend in the US was $42 billion in 2023, holding steady despite digital shift.
- Global video ad spend hit $180 billion in 2023, with mobile video at 60% of total.
- Native advertising revenue worldwide reached $98.5 billion in 2023, up 18% YoY.
- Influencer marketing spend globally was $21.1 billion in 2023, projected from prior trends.
- Email marketing ad spend in the US totaled $3.5 billion in 2023.
- Sponsorship deal values in sports advertising hit $85 billion globally in 2023.
- Billboards and transit OOH spend in Europe grew 9% to €6.8 billion in 2023.
- Gaming in-app ad revenue reached $47 billion worldwide in 2023.
- Podcast ad revenue in the US surged 27% to $2 billion in 2023.
- Over-the-top (OTT) video ad spend globally was $55 billion in 2023.
- Display ad spend excluding social and video was $92 billion globally in 2023.
- Paid search market share in US digital ads was 28% with $86 billion spend in 2023.
- Social ad spend share of global digital was 28.6% at $150 billion in 2023.
- Retail media ad spend in China reached $25 billion in 2023, leading Asia.
- TV traditional ad spend declined 2% to $55 billion in US 2023.
- Radio ad revenue in US was $3.8 billion in 2023, down 1.5%.
- Global ad spend forecast for 2024 is $1.05 trillion, up 8.5%.
- US local TV ad spend was $20.1 billion in 2023.
Ad Spending Interpretation
The modern ad machine has officially gone full sci-fi, where algorithms, screens, and influencers are vacuuming up nearly a trillion dollars—but don't tell the mailman, the radio host, or the newspaper on your doorstep, who are collectively wondering where their invite to the future went.
Consumer Impact
- 91% of global consumers are influenced by ad exposure to purchase decisions in 2023 surveys.
- 64% of shoppers say ads affect brand choices, with 41% buying advertised products weekly.
- Ad recall rates for TV spots averaged 25% unaided in 2023 US studies.
- 52% of consumers feel overwhelmed by ad frequency online daily in 2023.
- Brand favorability lift from emotional ads was 23% higher in 2023 tests.
- 71% of millennials respond better to user-generated content ads than traditional.
- Ad avoidance via blockers rose to 42% of internet users globally in 2023.
- Personalized ads increased purchase intent by 24% in 2023 e-commerce studies.
- 68% of consumers say negative ads deter purchases, per 2023 surveys.
- Humor in ads boosted shareability by 35% on social media in 2023.
- 55% of Gen Z trust influencer ads more than celebrity endorsements in 2023.
- Sensory ads (sound/scent) increased memory retention by 65% in lab tests 2023.
- 49% of consumers abandoned brands after intrusive ads in 2023 polls.
- Video ads under 15 seconds had 58% completion rates in 2023 mobile.
- 73% of parents report kids influenced by food ads on TV in 2023.
- Eco-friendly ad claims swayed 62% of buyers in 2023 green surveys.
- Retargeting ads had 70% higher view-through rates than cold ads 2023.
- 81% of luxury buyers research ads before purchase in 2023.
- Misleading ads led to 28% trust erosion in brands per 2023 ACC study.
- Music in ads increased positive sentiment by 18% in EEG studies 2023.
- 67% of boomers prefer TV ads for product discovery in 2023.
- Social proof in ads lifted conversions 32% in A/B tests 2023.
- 54% of consumers share ads they like, driving 19% referral sales 2023.
Consumer Impact Interpretation
In the modern marketplace, advertisers must walk a tightrope between being persuasively ubiquitous and becoming an intrusive nuisance, as consumers are simultaneously highly influenced yet increasingly resistant to their messages.
Digital Ads
- Mobile ad spend globally hit $362 billion in 2023, 62% of digital total.
- Google Ads generated 46% of publisher ad revenue in 2023, totaling $224 billion.
- Facebook ad revenue was $132 billion in 2023, with 98% from ads.
- TikTok global ad revenue reached $18 billion in 2023, up 120% YoY.
- Amazon ad revenue hit $46.9 billion in 2023, 86% growth from 2021.
- YouTube ad revenue was $31.5 billion in 2023, driven by Shorts.
- Programmatic direct deals made up 35% of digital ad transactions in 2023.
- 73% of US marketers increased digital video ad budgets in 2023.
- CTV ad impressions grew 28% YoY to 2.5 trillion in US 2023.
- Social commerce ad spend via platforms like Instagram reached $12 billion in US 2023.
- Search ad click-through rates averaged 3.17% across Google and Bing in 2023.
- Display ad CTR was 0.46% on Google Display Network in 2023.
- In-app mobile ad spend share was 75% of mobile total at $271 billion globally 2023.
- Retail media digital ad share grew to 15% of US digital spend in 2023.
- OTT ad-supported tiers like Netflix added $1 billion in ad revenue in 2023.
- LinkedIn ad revenue reached $15 billion globally in 2023.
- Snapchat ad revenue was $4.6 billion in 2023, focused on AR ads.
- Pinterest ad revenue hit $3.06 billion in 2023, up 11%.
- Twitter (X) ad revenue declined 40% to $2.5 billion in 2023.
- Reddit ad revenue grew 22% to $804 million in 2023.
- 68% of digital ad fraud in 2023 was mobile bot traffic, costing $92 billion globally.
- Header bidding adoption reached 70% of publishers in 2023, boosting yields by 20%.
- Privacy sandbox trials showed 15-20% CPM lift for Chrome users in 2023 tests.
- US digital ad growth slowed to 7.5% in 2023 from 12% in 2022.
- Video ads on social media had 1.84% CTR in 2023, highest format.
- E-commerce ad retargeting conversion rates averaged 3.5% in 2023.
- Global digital out-of-home (DOOH) spend reached $25 billion in 2023, up 12%.
- 52% of US consumers used ad blockers on mobile in 2023, up from 47%.
- Google's Performance Max campaigns drove 18% higher ROAS in 2023 benchmarks.
Digital Ads Interpretation
In a digital ecosystem where Google remains the towering giant devouring nearly half of all ad dollars and mobile is the undisputed king, marketers are feverishly chasing consumers who are increasingly ad-blocking, fraud-plagued, and scattered across a fracturing landscape of surging platforms like TikTok and Amazon, all while navigating a sobering slowdown in overall growth.
ROI Effectiveness
- ROI for digital display ads averaged $2 return per $1 spent in 2023.
- TV ads delivered $5.20 revenue per $1 spent for CPG brands in 2023.
- Search ads had 11:1 ROI ratio in US e-commerce 2023 benchmarks.
- Social media ads ROI was 8.25:1 for B2C in 2023 studies.
- Email marketing ROI stood at $42 per $1 spent in 2023.
- Influencer campaigns yielded 5.78x ROI on average in 2023.
- Programmatic ads improved efficiency by 25% ROAS in 2023.
- CTV ads had 1.7x higher ROI than linear TV in 2023 attribution.
- OOH ads generated $6.82 sales lift per $1 in 2023 econometrics.
- Native ads ROI was 53% higher than display banners 2023.
- Podcast ads delivered 4:1 ROI for direct response in 2023.
- Retail media ROI averaged 3x for CPG in Walmart/Amazon 2023.
- Video ads on YouTube had 2.5x ROAS vs display in 2023.
- SMS marketing ROI was $23.47 per $1 in 2023 mobile campaigns.
- Affiliate marketing ROI hit 16:1 for performance-based 2023.
- DOOH ROI measured 3.09x incremental sales lift in 2023.
- Cross-channel campaigns lifted total ROI by 37% in 2023.
- Brand lift from awareness ads averaged 12% in Meta studies 2023.
- Direct mail ROI was $12 per $1 for measured campaigns 2023.
- Cinema ads ROI 4.8:1 from ticketed audience in 2023.
- Audio ads ROI 3.2x for Spotify in-drive time 2023.
ROI Effectiveness Interpretation
The ROI data reveals that the best way to reach your customers is to send them an email, unless you happen to own a post office or a billboard company—in which case, forget you heard that.
Traditional Ads
- Traditional linear TV ad spend in Europe fell 5.2% to €45 billion in 2023.
- US national TV ad spend was $52.6 billion in 2023, down 7.1% YoY.
- Radio ad revenue share of total US ad market was 2.5% in 2023 at $3.8 billion.
- Newspaper print ad revenue globally declined 8% to $45 billion in 2023.
- Magazine ad revenue in US was $11.2 billion in 2023, down 10%.
- Outdoor static billboard spend in US grew 6% to $8.5 billion in 2023.
- Direct mail response rates averaged 4.4% for house lists in 2023 US campaigns.
- Cinema ad audience reach was 1.2 billion in US 2023, pre-movie ads.
- Yellow pages print directories revenue fell to $1.2 billion in US 2023.
- Transit advertising spend in major US cities totaled $1.1 billion in 2023.
- Local newspaper ad revenue per reader declined 15% to $200 in 2023.
- TV spot market pricing fell 11% for upfront buys in 2023 US networks.
- Radio listenership among 25-34 demo was 38% weekly in US 2023.
- Print ad clutter in magazines averaged 25% of pages in 2023 issues.
- OOH impression multiples for digital vs static were 3.5x higher in 2023.
- Direct response TV infomercial airtime revenue was $2.1 billion in 2023.
- Newspaper classified ad revenue share dropped to 15% of print total in 2023.
- Billboard GRP delivery averaged 150 in top US markets 2023.
- 89% of US adults reported noticing TV ads weekly in 2023 surveys.
- Print catalog distribution reached 6.5 billion pieces in US 2023.
- Movie theater ad play length averaged 15 minutes pre-feature in 2023.
- Local radio station ad revenue averaged $150k per station in 2023.
- 62% of marketers reported higher brand awareness from TV ads vs digital in 2023.
- 45% of consumers trust TV ads more than online ads according to 2023 Edelman Trust Barometer.
- 76% of US consumers skip TV ads when possible via DVR in 2023.
Traditional Ads Interpretation
While television's ad spend shrinks and its viewers skip ahead, and print withers on the vine, it seems the only media truly 'sticking' are those you can’t avoid—like that billboard you’re staring at in traffic or that catalog clogging your mailbox.
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