According to eMarketer, we’re definitely not in the digital ad-pocalypse, but privacy changes, macroeconomic headwinds, and ad spend normalization led us to downgrade our US digital ad spend forecast by $5 billion for 2023.

While the overall market slows, not all categories will take the same hit. Social media is definitely in trouble, but connected TV (CTV) and retail media are in good shape.

Retail media networks are on the rise

Retail media is on the rise this year, with Walmart and Instacart growing the fastest. While Amazon’s ad business is growing slower than other retail media networks, its revenues are higher at $34.59 billion in US ad revenues. Walmart will see a fraction of that at $3.16 billion. Instacart’s ad revenues will be even lower at $1.12 billion.

The retail media boom is here, and it will flourish during a time of uncertainty for data collection and privacy.

One quick word on Meta

2022 was not Meta’s year. 2023 won’t be either. The company formerly known as Facebook spent billions of dollars building out its metaverse dreams this year, only to face online ridicule and massive layoffs.

Meta’s revenue loss is a reflection of social media advertising struggles everywhere. As privacy and data collection face an uncertain future, advertisers are wary of social platforms.

Read the full eMarketer article here

www.emarketer.com