Here’s how 2023 global media spending breaks down into offline vs. digital advertising, programmatic, walled gardens vs. open web, and DSP’s share of it.
$856 Billion on Advertising Media
Advertising media are the placements used to deliver promotional messages through any channel, including print, broadcast, outdoor, and digital platforms.
In 2023, the forecast global spending on advertising media is $856 billion.1
$424.3 Billion on Digital Advertising Media
Digital advertising is advertising through digital channels such as websites, social media, email, mobile apps, and search engines.
In 2023, the forecast global spending on digital advertising is $424.3 billion.2
$431.7 Billion on Traditional Advertising Media
Traditional offline advertising employs non-digital channels such as newspapers, magazines, television, radio, billboards, and transit ads.
I think we can assume the balance, $431.7 billion, is the forecast global spending on traditional offline advertising media in 2023.
$302.9 Billion on Programmatic Advertising
Programmatic advertising is automated buying of digital ad space using algorithms and real-time data.
Programmatic advertising, a subset of digital advertising, is forecast to represent 71.4% of the digital ad spend in 2023.2 To calculate the amount spent on programmatic advertising, I multiplied the digital ad spend by the percentage spent on programmatic advertising:
$ 424.3 billion × 0.714 ≈ $ 302.9 billion
Therefore, roughly $302.9 billion is forecast to be spent on programmatic advertising in 2023.
$237.2 Billion on “Walled Gardens” Advertising
“Walled Gardens” are digital environments where the platform controls and restricts access to user data and ad serving. Examples include Google, Amazon, Facebook, LinkedIn, Pinterest, Snapchat, Spotify, and TikTok.
In 2023, about three-quarters of programmatic display ad spending will go to Walled Gardens.3 This corresponds to approximately 78.3% of the ad expenditure controlled by these Walled Gardens.4
$ 302.9 billion × 0.783 ≈ $ 237.2 billion
Therefore, $237.2 billion is forecast to be spent on programmatic advertising in Walled Gardens in 2023.
$65.7 Billion on Open Web Programmatic Advertising
Open web programmatic advertising is automated buying of digital ad space outside of Walled Gardens.
The remaining percentage, which would be around 21.7%, is likely to be spent on the open web. I calculated the dollar amount as follows:
$ 302.9 billion × 0.217 ≈ $ 65.7 billion
Therefore, $65.7 billion is forecast to be spent on programmatic advertising on the open web in 2023.
$25.5 Billion on Demand Side Platforms (DSPs)
Demand Side Platforms (DSPs) are software platforms used in programmatic advertising to automatically purchase digital ad space based on parameters set by advertisers.
The global advertising spend through Demand Side Platforms (DSPs) was projected to be $25.54 billion in 2023. 5
??? Billion on Supply Side Platforms (SSPs)
Supply Side Platforms (SSPs) are software systems that enable publishers to automatically manage, sell, and optimize their digital ad inventory.
Unfortunately, despite earnest efforts, I wasn’t able to track down any good data on media spending through Supply Side Platforms (SSPs). I’d appreciate your help with this!
Omnichannel Media Planning and Media Buying
As advertising budgets splinter into more and more pieces, it’s more important than ever to have an omnichannel media plan view of your entire media budget across all media channels.
Bionic for Agencies is the only truly omnichannel, fully-integrated media planning and media buying software. Bionic enables you to plan and buy 100% of your media plan, whether it’s old-school traditional advertising, new-school digital programmatic advertising, or a combination of both.
Sources
You’d be wise to be skeptical of this data. After all, it was sourced from articles on the internet. Here are our sources to help you assess the reliability of the statistics I cited above:
- Navarro, J. G., “Advertising worldwide – statistics & facts,” Statista, May 16, 2023.
- Huljboom, Peter, “Media Outlook – dentsu Global Ad Spending Forecasts,” Dentsu, May 2023.
- Mitchell, Evelyn, “Programmatic Ad Spending Forecast Q1 2023,” Insider Intelligence, February 24, 2023.
- Statista Research Department, “Share of walled gardens versus the open internet in digital advertising revenue worldwide from 2017 to 2026,” Statista, January 10, 2023.
- “Demand Side Platform Market Share,” Fortune Business Insights, May 2023.
Please let me know if you find errors. I’d be happy to correct them.
