Inflation has been hitting virtually every single industry quite hard. For a time, digital ad spends seemed like they were immune to the effects of inflation, and they managed to grow as a proportion of total ad buys to 59% with all things having been considered and taken into account. In spite of the fact that this is the case, inflation has finally hit the digital ad market as well, with the market recording a 2% decrease in ad buys year to date.
This data comes from a recent analysis conducted by the Standard Media Index, and it revealed that the overall ad industry is in dire straits. With all of that having been said and now out of the way, it is important to note that the 2% decline seen in digital ads is still better than the 6.9% decrease across the entire ad market, and that seems to suggest that digital ads are overperforming when compared to other forms of marketing.
This seems to suggest that digital ads are doing better than might have been the case otherwise, although this segment is still appearing to run out of steam. The worst hit form of digital ads is that of digital video, which registered a staggering 9% decline in the same period.
Paying attention to these trends is important because of the fact that this is the sort of thing that could potentially end up determining the direction in which the industry might be headed. However, it should also be mentioned that 2022 was a unique year in that it had the Winter Olympics, which necessitated an increased number of ad buys among media agencies.
All in all, the turmoil that is being caused by rampant inflation doesn’t look like it will be abating anytime soon. It will be interesting to see if 2023 indicates any further declines. If that were to occur, the future of the industry could look very different than what it does right now, and many major companies relying on ad revenue will need to look for other sources lest the inflow of ad buys dries up even further.
H/T: Mediapost
Read next: SEOs Say Bing Chat is Better Than Google Bard
This data comes from a recent analysis conducted by the Standard Media Index, and it revealed that the overall ad industry is in dire straits. With all of that having been said and now out of the way, it is important to note that the 2% decline seen in digital ads is still better than the 6.9% decrease across the entire ad market, and that seems to suggest that digital ads are overperforming when compared to other forms of marketing.
This seems to suggest that digital ads are doing better than might have been the case otherwise, although this segment is still appearing to run out of steam. The worst hit form of digital ads is that of digital video, which registered a staggering 9% decline in the same period.
Paying attention to these trends is important because of the fact that this is the sort of thing that could potentially end up determining the direction in which the industry might be headed. However, it should also be mentioned that 2022 was a unique year in that it had the Winter Olympics, which necessitated an increased number of ad buys among media agencies.
All in all, the turmoil that is being caused by rampant inflation doesn’t look like it will be abating anytime soon. It will be interesting to see if 2023 indicates any further declines. If that were to occur, the future of the industry could look very different than what it does right now, and many major companies relying on ad revenue will need to look for other sources lest the inflow of ad buys dries up even further.
H/T: Mediapost
Read next: SEOs Say Bing Chat is Better Than Google Bard
