WTR Tech Talks: Adtech 101



KEY POINTS
  • Despite the tough macroeconomic backdrop, digital advertising spend will continue to rise in 2023, largely driven by programmatic spend.
  • Connected TV (CTV) continues to surge and is expected to be the fastest-growing channel in 2023, growing at nearly 15% Y/Y, according to the Interactive Advertising Bureau (IAB).
  • Social media advertising spend will decrease in 2023, according to eMarketer’s ad spending forecast, with a reduction of $16.21 billion due largely to a rising focus on privacy and transparency.
  • According to eMarketer, the recent reduction in digital ad spending growth rate projections is driven by privacy changes, macroeconomic headwinds, and post-pandemic normalization. State privacy legislation, particularly the California Privacy Rights Act, is expected to have a significant impact in 2023, but no US federal laws are expected. Marketers are continuing to prepare for cookie deprecation.
  • AdTheorent is a programmatic DSP that uses machine learning (ML) and data science to execute high-performing digital ad campaigns in the most privacy-forward manner, not dependent on user IDs for targeting.
  • Water Tower Research (WTR) initiated coverage of AdTheorent in late 2021. All related reports and videos are complimentary to access on the WTR AdTheorent company webpage.
  • WTR is initiating Tech Talks, designed to be a series of short discussions on issues surrounding technology investing. This marks our initial report. Please see all our other WTR technology reports here.
INDUSTRY STATISTICS

Consumers Spend 8 Hours/Day with Digital

Source: Insider Intelligence eMarketer 2022



US Digital Ad Spending Continues to Grow

Source: Interactive Advertising Bureau, eMarketer, WTR


Despite the tough macroeconomic backdrop, digital advertising spend will continue to rise in 2023, largely driven by programmatic spend.

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