Digital advertising may be reaching the top of its ‘S’ curve

Growth in investment in digital ads appears to be slowing down.

The pandemic-propelled industry boom has waned. Amid macroeconomic uncertainty, less than a quarter of marketers think their 2023 budgets will increase from the previous 12 months.WARC Media forecasts pureplay internet ad growth in 2023 at just 5.5%, down from 42% in 2021, reaching a worldwide total of $523bn.

It seems the digital ad market is arriving at the top of an ‘S’ curve, where growth is slow to begin with, then accelerates over a period of time, before flattening. Only 68% of advertisers surveyed by WARC forThe Marketer’s Toolkitplan to increase spend on online video...

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