Create Account
Wow, what a year; 2023 was one for the books for digital media buyers. We saw the introduction of Netflix OTT placements, the last of lingering Cookies going away, the new growth of DOOH, and the ever expanding reach of display ads. Staying true to form, Genius Monkey is here to dive deep into platform user’s data to give you a quick overview of some interesting trends observed throughout the year. (Percentages and industries bolded for your convenience and quick reference)
High-Level Platform Trends; Good News All Around!
At the highest level, Genius Monkey CPCs decreased an overall average of 12.24%; CPMs also decreased an average of nearly 4%. More people are seeing more of our users ads for less money on average; it’s a trend we all love to see!
Genius Monkey also noticed that the average spend amount per account on the platform increased by 36%. This substantial increase meant users were turning more to programmatic for their marketing needs and less to their previous methods.
This transition was largely driven by the increased spend on display and online video, with display spend increasing 29.77% and video increasing 33.85%.
Online video saw the largest jump in spending for any programmatic medium, most likely fueled by a 24% decrease in CPC from 2022 to 2023.
Display and online video show the biggest savings, but the other mediums aren’t far behind. Both OTT and Audio had increasingly better performance with drops in CPM of over 6% for OTT and nearly 10% for Audio.
Spend and cost metrics are essential to understanding what advertisers can expect in 2024, but the most exciting factors to consider are conversion trends. While costs may have increased in some programmatic mediums, Genius Monkey saw astonishing decreases in cost per conversions in almost every vertical and medium:
- Display ads saw a 57.6% decrease in cost per conversion
- Video saw a 46.9% decrease
- Audio saw a 86.8% decrease
OTT was the outlier that saw a slight 4.4% increase in cost per conversion - a subtle increase that came paired with a drop in CPM, allowing for more impressions.
Past and Upcoming Industry Growth
Health & Fitness saw a huge increase in spending during the 2020/2021 lockdowns; many predicted that spike would drop off sharply, but 2023 was another incredible year for this industry! Programmatic spending increased by over 350% on audio, 114% on display, and 111% on online video. The increase in spending here was largely influenced by the continued success in the Health and Fitness vertical. This is apparent in the 63% reduction in cost per conversion in 2023 vs 2022.
It was also a big year for Legal, which saw over 172% increase in spending on display, 79% on video and 14% on OTT.
It’s Election Year! Political spending dropped sharply in 2023 – as expected – but it’s only going to get better with a Presidential election coming up. Genius Monkey expects numbers to skyrocket in the 2024 election cycle, likely reaching higher than they have ever been before.
Verticals with Increased Performance Due to Lowered Cost
This last year saw Casinos and the Hospitality industry capitalizing on new efficiencies and an increasing demand in their space, thanks to a CPM drop of over 36% on display and over 38% on OTT, all while yielding a 73.5% reduction in cost per conversion.
The Service Provider sector had up to 19% drops in CPC and 29% drops in CPM. These efficiencies clearly didn’t go unnoticed; these advertisers spent up to 33% more advertising dollars than years prior. Hats off to an industry that capitalized on opportunity!
The Energy industry also enjoyed CPC decreases of over 12% for both Display and Video.
In Q4, the Finance vertical saw large drops in CPC across the board, driving up traffic to these advertisers. This was likely due to less competition thanks to economic influences. While these economic influences may have scared some finance advertisers out of the market, the ones who stuck with it reaped some massive benefits – the finance space saw cost per conversions reduce by just over 40%.
Notable Sectors that Increased in Competition and Prices
Technology continues to evolve at a break-neck pace; display and video specifically saw jumps in 2023, causing CPCs to increase by 33% on display and 53% on video.
Entertainment & Sporting Events drew a much larger interest online; competition was fierce on and off the field in 2023. This caused CPCs to increase by 11% for display and over 20% on video. Notably, CPMs decreased for video in this vertical, helping them drive more branding and outreach.
This CPM decrease countered the increasing cost-per-click, paving the way for a 98% reduction in cost per conversion for the space. This just goes to show that – with the right team – opportunities for branding and saving abound even when industry trends suggest otherwise.
Pretender or Contender? Why We Think CTV/OTT is Here to Stay
CTV/OTT didn’t experience a massive uptick in spending in any one vertical, but CPM continued to be driven down largely thanks to one factor: ad-supported streaming services. The additional inventory brought on by Netflix, Amazon, and many others offers a great chance for better targeting, more engagement, and better prices with lower competition!
And new options are on the way; digital ad-supported streaming is on the rise and brand-new concepts like Telly’s free 4K TV promotion are sure to make waves. CTV is due for a big break, and Genius Monkey thinks it might be coming soon.
Many advertisers remained skeptical in 2023, as OTT still wasn’t a high last-touch conversion-driving medium compared to online video and display. It’s time for the skepticism to be pushed aside, as OTT continues to grow and benefit from new technologies that improve efficiency, targeting, and ad traceability.
That’s A Wrap
2023 was a phenomenal year for digital advertising, with growth in just about every area despite economic concerns spread worldwide. We fully expect continued growth in 2024 along with huge leaps in technology – like the robust alternative targeting solutions that have been created for the transition away from the cookie. New advertising mediums like Telly and others will continue to push the space further allowing for more placements and intricate targeting.
A growing industry means an increase in competition, and increased competition usually makes it harder to prosper. Your best chance of success is buying smart with the right tools; a meta-DSP that buys around demand and doesn’t get stuck with deep-pocket competition is a great place to start.
Big, small, broad, or niche: Genius Monkey is here for all your programmatic needs this election year and beyond. Come talk to us to see how we can evolve your marketing strategy to the next level!
