Global spending on digital advertising will reach $520 billion by 2023 — up from $294 billion in 2019, according to a new forecast from Juniper Research.
The projected growth — averaging 15% annually over the next five years — will be driven by artificial intelligence-based programmatic buying capable of delivering highly targeted ads, says the report.
Juniper’s definition of digital advertising for analysis and projection purposes includes online, mobile browsing, in-app, digital out-of-home (DOOH) and over-the-top (OTT) TV services.
Because of advertising platforms’ focus on increasing access to contextual advertising traffic data to maximize the efficiency of machine learning for targeting, 75% of global online and mobile ads are expected to be delivered via AI-based programmatic advertising by 2023.
“Giving algorithms access to the vast amounts of data generated by advertising traffic, including purchasing habits, user buckets and geographical location, is critical to enabling advertisers to secure a return on their ad spend,” observes the research’s author, Sam Barker.
Thanks to its “unparalleled” consumer retail data, Amazon’s ad revenue (Amazon display ad example shown above) is projected to rise to $40 billion by 2023, representing 470% growth from 2018.
The ecommerce giant’s share of digital advertising is forecast to rise to 8%, from 3% in 2018.
Google’s digital ad revenue is expected to exceed $230 billion by 2023.
Yet because of the growing competition from Amazon, Baidu and others, Google’s share of the pie is forecast to decline by 1% during the period.