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    JamesonBy JamesonSeptember 14, 2022No Comments2 Mins Read
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    New research by GroupM shows that the digital ad spend in the U.S. is expected to reach $343 billion in 2022, a 9.3% increase over last year. The report also notes that political dollars are a major part of that total. Overall, digital ad spending will account for 61% of total ad dollars in the U.S.

    However, new headwinds are affecting the outlook for digital ad spending. This includes inflation and broader economic pressure. Additionally, pending changes in the collection of personal data and the impact of Apple’s iOS privacy changes will have a negative impact on the digital ad industry. As a result, the report suggests that digital advertising spending will shift away from social media and toward keyword formats and campaign strategies.

    Despite the weaker economic environment, organic drivers are fueling growth in advertising spending. For example, the fast-growing lifestyle-related product verticals – such as health and fitness and consumer electronics – are driving marketing activity and advertising spending. In these fast-growing product verticals, the use of digital advertising is preferred over traditional “below-the-line” marketing channels. While most industry verticals are expected to see growth, some industries such as Financial Services and Retail are likely to experience some challenges.

    The amount of digital ad spend in 2022 is expected to reach $23.5 billion, an 11.7 percent increase from Q1 2022. Most of this growth is driven by social media channels, which accounted for 61 percent of total ad spending in the second quarter of 2022. Video and OTT advertising make up the remainder. The fastest-growing platform is TikTok, which grew by 33 percent to $1.2 billion in Q2 2022.

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