Marketing and advertising are critical components of a company’s growth. As the number of internet users grows year after year, many brands have increased their digital marketing spending to reach more customers.
In 2022, the global digital advertising market is expected to be worth $602.25 billion, accounting for 66.4 percent of total media advertising spending. This refers to advertisements displayed on internet-connected devices such as computers, mobile phones, and smartphones. Email marketing and video material, as well as search engine results, are examples of media ads.
Increase in Digital Advertising
The amount spent on digital advertising in 2022 is up 15.6% from $521.02 billion in 2021. Although it is a small gain, digital advertising growth is likely to continue in 2023.
Between 2021 and 2026, the highest yearly growth occurred in 2021, when digital ad expenditure climbed 29.9 percent year on year.
The boom of digital advertising shows no signs of slowing. According to experts’ forecasts, the digital advertising business will continue to grow over the next few years, but at a slightly slower pace.
Here are the projected annual growth rates for digital advertising over the next few years:
- 2023: 13.1 percent
- 2024: 11 percent
- 2025: 8.4 percent
- 2026: 6.8 percent
2022 is the first time global digital ad spend is expected to cross the $600 billion mark. If that’s not impressive enough, the digital advertising market is forecast to continue growing and reach $681.39 billion in 2023 and rise further to $756.47 billion in 2024 and $820.24 billion in 2025.
By 2026, it will hit $876.10 billion. Not only is this a 68.2 percent increase from 2021, but it will also make up 73.6 percent of the overall expenditure on media ads. In other words, in 2026, for every dollar spent on ads, nearly 74 cents will be on digital ads.
As digital ad spending grows, expenditure on print media advertising declines. Research results suggest that the coronavirus pandemic in 2020 has accelerated the shift to digital advertising.
Plus, with lockdowns in place worldwide, people are spending more time at home than usual and consuming increasing amounts of digital media. Print media is badly affected by this shift, with the effect being particularly hard felt in print newspapers and magazines.
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