Unprecedented changes in search advertising forecasted

Unprecedented changes in search advertising forecasted

Search advertising, forecast to be worth $350.4bn in 2023, is set for unprecedented disruption from retail media, social media and AI, according to a forecast from WARC Media. “Retail media – encompassing Amazon, Walmart, Alibaba and others – is set to draw over a quarter ($93.8bn) of all search advertising spend this year.”

“The search market is on the cusp of an era of innovation. Google’s long-standing market dominance is set to come under unprecedented pressure as consumers pivot away from text-based search towards discovery on social, generative AI reinvents the search experience, and the explosive growth of retail media, the majority of which is search-orientated, continues”, says Alex Brownsell, Head of Content at WARC Media.

The forecast says that amidst an ongoing digital ad market slowdown, traditional search spend (excluding retail media) is proving to be resilient. While global advertising investment is forecast to grow just 2.9% to $907.2 billion this year, paid search, the largest media channel by ad spend globally, is set to increase 6.2%. 

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40% of the global search market is in the US and will note a robust 12% growth rate this year, taking its value to nearly $100 billion, according to the forecast. 

“In APAC, where social commerce is far more established, paid search’s share of advertising budgets falls to 17%. Japan, the APAC market outside of China with the biggest search spend, is forecast to see search investment expand to $7.4 billion in 2023. In China search spend is expected to grow to ¥131 billion ($19 billion).

 “Retail media has transformed the search advertising market over the last few years. According to WARC Media and GroupM forecasts, total search advertising spend is set to be worth $350.4 billion this year, of which just over a quarter (26.8%) will come from retail media, valued at $93.8 billion.” 

Search advertising, forecast to be worth $350.4bn in 2023, is set for unprecedented disruption from retail media, social media and AI, according to a forecast from WARC Media

“Retail media – encompassing Amazon, Walmart, Alibaba and others – is set to draw over a quarter ($93.8bn) of all search advertising spend this year.”

“The search market is on the cusp of an era of innovation. Google’s long-standing market dominance is set to come under unprecedented pressure as consumers pivot away from text-based search towards discovery on social, generative AI reinvents the search experience, and the explosive growth of retail media, the majority of which is search-orientated, continues”, says Alex Brownsell, Head of Content at WARC Media.

Read Also:  More than half of social media advertising revenue is from video

The forecast says that amidst an ongoing digital ad market slowdown, traditional search spend (excluding retail media) is proving to be resilient. While global advertising investment is forecast to grow just 2.9% to $907.2 billion this year, paid search, the largest media channel by ad spend globally, is set to increase 6.2%. 

40% of the global search market is in the US and will note a robust 12% growth rate this year, taking its value to nearly $100 billion, according to the forecast. 

“In APAC, where social commerce is far more established, paid search’s share of advertising budgets falls to 17%. Japan, the APAC market outside of China with the biggest search spend, is forecast to see search investment expand to $7.4 billion in 2023. In China search spend is expected to grow to ¥131 billion ($19 billion).

 “Retail media has transformed the search advertising market over the last few years. According to WARC Media and GroupM forecasts, total search advertising spend is set to be worth $350.4 billion this year, of which just over a quarter (26.8%) will come from retail media, valued at $93.8 billion.” 

Read Also:  A 2023 focus on search advertising and retail media

 

 

 

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