Introduction to the IAB Survey
The IAB's 2023 Outlook Survey is a research conducted by IAB that aims to give a glimpse into digital ad spending in 2023. The survey focuses on the projections and strategies of ad investment decision-makers, mostly from brands and agencies. The study gives an overview of the overall spend, as well as spend levels in different channels and categories. It also provides an understanding of the opportunities and strategies for growth in the areas of retail media networks (RMNs) and emerging technologies such as the metaverse, non-fungible tokens, and augmented reality. The survey results are intended to assist both buyers and sellers in the digital ad industry to plan for the next year, evaluate their competitive positioning and strategies, and identify new opportunities and channels for launching new products, services, and targeting new audiences to increase ROI. It may seem overwhelming, but don't fret, we've done the heavy lifting and simplified everything for you. Continue reading to discover the current trends for this year!
2023 Ad Spend Outlook
Overall ad spending in 2023 will increase by 5.9% compared to the previous year. However, the survey found that the growth will not be consistent across all categories. Some sectors such as B2B, travel, food and bev, and financial services are projected to see double-digit growth, while other categories may see a decline. The survey also found that all digital channels, led by CTV, are expected to see ad spending growth in 2023, while traditional channels will experience a decline.
2023 Opportunities and Strategies for Growth
Customer acquisition is the primary goal for media investments in 2023 for 61% of buyers, followed by increasing brand equity (43%) and improving media efficiency (35%). Additionally, more than half of buyers expect to allocate more time and resources towards measurement, marketing mix and modeling, utilizing first-party data, and working with creators in 2023. Furthermore, the survey suggests that over 6 out of 10 buyers will be more frequently revising their media plans in 2023, with the majority of them doing so at least once a month.
Retail Media Networks (RMNs) DeepDive
The IAB's 2023 Outlook Survey found that of the buyers surveyed, 61% are currently investing in or considering investing in Retail Media Networks (RMNs) advertising. Among those currently investing, the survey projects that 2023 RMN ad spend will increase by 28.4% YoY. The RMN ad investments are spread across multiple partner types, with the majority of investment going towards aggregated marketplaces (82%), followed by retailer owned (75%), and e-commerce owned (64%). Onsite (owned & operated) ad investment is the top tactic used among 91% of RMN buyers. It's not surprising to see more investment in this area as retail is a crucial avenue for acquiring new customers, which as previously mentioned, is a top priority for most brands in 2023.
Metaverse Deep Dive
Additionally, the survey found that more than half of buyers (56%) are investing or considering investing in the metaverse advertising/marketing. The top reasons for metaverse advertising investments are building brand awareness (52%), engaging existing customers in a new way (48%), boosting brand perception (46%), and reaching hard-to-find audiences (42%). Those buyers who are not investing in metaverse advertising cite multiple reasons such as the space being new and not a good fit for their audiences and brands. Venturing into the Metaverse is a strategy that well-established brands, who want to remain ahead of the competition, might adopt. This is frequently done by embracing new media channels and platforms before challenger brands take the leap.
Read the full report here: https://www.iab.com/wp-content/uploads/2022/11/IAB_2023_Outlook_Survey.pdf