Since 2020, we have been living in fear of a recession, and while the state of the economy has somewhat improved, the economy is still in a period of turbulence.
However, new research from Magna, a media intelligence and investment firm, estimates that U.S. ad revenues are expected to grow 3.4% to $326 billion in 2023 alone.
According to Magna’s Executive Vice President of Global Marketing intelligence, Vincent Létang, factors such as the rise of streaming, ad-supported video, and rising investment in consumer-facing businesses are mitigating this difficult environment. In other words, these factors are the reason why the advertising industry is not only going to remain stable but also predicted to grow.
As the Wall Street Journal reported, Magna also expects out-of-home advertising, like billboards, to grow 6%, reaching $9.6 billion. Thanks to digital and programmatic innovations, out-of-home advertising continues as the strongest traditional media format.
Yet, some experts disagree as the Standard Media Index data shows 8 consecutive months of year-over-year decline. This finding is even supported by executives that work with creator ad monetization on Youtube, Facebook, etc. who say that CPMs have declined more than 25%.
So who is actually right?
While we can’t give you an answer, what we can give you is a list of a few action times you can do if you are a creator!
- Grow an audience & build trust for the long-run
- Invest in direct monetization
- Keep creating content!
Need advice on how to maximize your advertising budget?
We’ve got you covered. Reach out to us today for expert advice on your advertising strategy.