Total spend on digital advertising will reach $520 billion by 2023
Juniper Research forecasts that total spend on digital advertising will reach $520 billion by 2023; rising from $294 billion in 2019. This is an average annual growth of 15% over the next 5 years; driven by the use of AI-based programmatic advertising to deliver highly targeted ads. Digital advertising includes online, mobile browsing, in-app, SMS, DOOH (Digital-Out-of-Home) and OTT (Over-the-Top) TV services.
The new research found that Amazon’s emerging digital advertising business, driven by its unparalleled consumer retail data, will drive the company to capture 8% of global digital ad spend by 2023. This is forecast to rise from 3% in 2018.
The report forecasts that Amazon’s advertising revenues will reach $40 billion by 2023; a growth of 470% from its advertising revenues in 2018. The company will leverage its retail data and heavy investment in machine learning to offer efficient targeting via its advertising platforms, and attract users from the established duopoly of Google and Facebook.
According to the study, Google’s advertising revenues will exceed $230 billion by 2023. Despite this, it forecasts that the company’s global market share of digital advertising spend will fall 1% over the next 4 years due to the growth of competing platforms, including Amazon and Baidu.
The report anticipates advertising platforms will focus on increasing access to contextual advertising traffic data to maximize the efficiency of machine learning for targeting abilities. As a result of these efforts, 75% of global online and mobile ads are forecast to be delivered via AI-based programmatic advertising by 2023.
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