The Importance of Rebalancing Marketing Budgets in 2023
According to data from WARC, (the World Advertising Research Centre) online video, social media, and gaming are the top-three channels where marketers are increasing budgets in 2023. The WARC Ad Spend Outlook 2022-2023 report shows that marketers are rebalancing their budgets, with a shift towards more digital advertising and away from traditional advertising methods. Today, Click Tap Media is sharing the highlights of the report.
Global ad spend is set to grow by 4.3% in 2023, with digital channels expected to account for more than half of this growth. Online video and social media are expected to be the biggest beneficiaries, with video spending set to increase by 11% and social media spending by 10%.
One of the key drivers of this shift is TikTok, which is on course to become the world's biggest spending advertising platform, according to WARC. TikTok's ad revenue is forecast to grow by 42% in 2023, and 76% of marketers are expected to increase their spend with the platform.
However, despite TikTok's success, the digital advertising landscape is constantly evolving, and new social apps like BeReal are attracting advertisers' attention. Brands like Chipotle are experimenting with their budgets on these new platforms, which offer immature ad environments, but ones with ripe potential.
As a result, marketers are rebalancing their budgets to keep up with these changes and stay ahead of the competition. According to WARC, "brands must take a more data-driven and flexible approach, using multiple channels and ad formats to reach their target audience effectively."
Overall, the message from WARC is that marketers must be agile and adapt to these changes to stay ahead of the competition and reach their target audience effectively. With the increasing popularity of social media and online gaming, brands must take a more data-driven and flexible approach, using multiple channels and ad formats to reach their audience in the most effective way possible.