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Programmatic advertising has cemented itself as the premier digital marketing avenue, representing the vast majority of digital ad spend in 2023 – the exact percentage depends on who you ask, but the lowest we found was about 80%. Not only is it big, but the numbers also confirm that it’s growing.
Programmatic covers a variety of mediums, all of which experienced their own ups and downs worth examining. In this week’s blog, we’re taking a look at how the mediums collectively and individually grew in the year 2023 – as well as comparing them to Genius Monkey data – so you can know the trajectory of industry moving forward.
Unless otherwise noted, all industry stats are from Statista.
High-Level Trends
First off, overall digital ad spend increased by 10.5% in 2023, reaching an all-time high of about $626.86 billion. Digital marketing has experienced continual growth since 2019, though the rate has decreased slightly each year. The 2020 lockdowns likely spurred the initial push, with the widespread adoption and use of digital devices and services maintaining the long-tail growth that continues to this day.
Programmatic ad spend rose to $545.81 billion, which is a 10.8% increase from the year before. This total against the overall digital spend suggests that programmatic encompasses 87% of all digital ad spend, but many outlets suggest the percentage is even higher; one report through eMarketer suggested it could be as high as 91.3%.
Display Advertising Growth
The bread and butter of digital advertising grew to $148.83 billion in 2023, handily retaining its title as the most popular programmatic type. Display ad spend increased by 16.8%, the second-largest jump of all the mediums in spending. Genius Monkey users were ahead of the curve here, increasing display ad spend by roughly 30% over 2022.
Display ads continue to be the most efficient way to get your name into the minds of consumers, and should form the foundation of any programmatic campaign. Genius Monkey expects that their fundamental nature will cause display ads to become increasingly popular, even if programmatic ad spend as a whole should slip in some future day.
Video Marketing Growth
Genius Monkey users have seen great success with video ads, increasing video spend by a whopping 34% in 2023. The wider industry isn’t speeding up quite as fast, but still spent $76.97 billion, an 11.5% increase over 2023.
While they can be expensive to produce, video ads generally offer best-in-class ROI, especially when paired with a great programmatic platform. Video cost-per-click decreased by 24% for Genius Monkey users, suggesting that more people are seeing the ads while the advertisers spend less on each engagement.
Programmatic Streaming Audio Uplift
Programmatic audio is an under-utilized medium that is starting to pick up steam. Audio ad spend increased by a billion dollars last year, a 14.06% uplift. Inventory is opening up as publishers and advertisers recognize audio’s potential, which has led to Genius Monkey users enjoying a 9.67% lower CPM.
Audio streaming continues to grow in power; the shift has shaken the music industry, which now gets 84% of its revenue from music streaming. 78% of people listen to music through a streaming service, and 31% of Americans listen to at least one podcast every week.
Paid Search Spend Increase
Paid search spend increased to $118.2 billion in 2023, 12.3% higher than the year before. While not strictly a programmatic medium, paid search is nevertheless an essential component of any programmatic campaign. For more information on how to get the most out of your search campaign, check out this article here.
Huge Growth in CTV/OTT Advertising
CTV experienced the largest relative growth of any programmatic ad spend: an 18% increase that brought it up to $24.6 billion. The increase in budgets suggests that advertisers are starting to hop aboard the CTV train, and for good reason: all signs point to CTV/OTT being the next big “thing” in digital advertising.
OTT advertising has been a bit of a sleeping giant in programmatic thanks to the inherent difficulty in tracking engagement. While Genius Monkey has always been at the forefront of OTT tracking, there’s still a lot of room for innovation, and we’re starting to see it emerge from slumber. Streaming services are ramping up ad-supported versions of their products, and new technologies like Telly are promising ever-better ways of understanding how OTT fits in the customer journey.
What to Expect From 2024
2023 brought a lot of growth to all aspects of programmatic marketing, and there’s little reason to suggest 2024 will be any different. A presidential race can mean less availability overall, but ever-increasing inventory and increased audience interest makes Genius Monkey confident that this will be the best year yet for programmatic. We expect that CTV will continue to lead the pack in expansion, as more consumers flock to ad-supported streaming and the space continues to get more competitive.
Advertisers are spending more because ads are costing less! Check out Genius Monkey’s report on lowering prices across all the different mediums and industries here. For more on how programmatic can elevate your marketing strategy, come talk with the Genius Monkeys today!
