Here’s How Media Budgets Are Trending for 2023

By Marketing Charts

Video looks to be a big winner of resource investments this year and next, according to the latest annual Media Reactions study [download page] from Kantar. Based on a global survey of almost 1,000 senior marketers, the report finds that online video and video streaming have the most positive momentum this year, and occupy 2 of the top 3 spots next year.

Media Budgets

Online video ads are expected to see the largest positive change (percentage of marketers increasing budget/resource allocation minus percentage of those decreasing budget): a net of 61% of marketers and agencies expect to increase their budgets for online video in 2022 (the broadest consensus of any medium). Furthermore, a net of 66% project an increase for video ad budgets next year, also the highest percentage for any medium.

A recent forecast from Zenith found that for the first time in the past decade, a medium other than social media will be the fastest-growing over the next 3 years: online video, which is forecast to increase by 15.4% on average annually between 2021 and 2024. Meanwhile, within the US, the world’s largest ad market, digital video ad spend is predicted to overtake traditional TV ad spend this year.

Closely following online video is video streaming: a net of 58% of respondents expect their budget allocations for video streaming ads to increase this year, second among all media analyzed. A net of 62% expect an increase in their resource allocation for online video next year, which is third behind online video (+66%) and social media stories (+62%).

Other media that a net of at least half of respondents expect to increase their resources for next year include:

  • Marketing in the metaverse (61%)
  • E-commerce ads (59%)
  • Influencers content (59%)
  • Ads in social media news feeds (56%)
  • Online/mobile games (52%).

Podcasts (46%) and music streaming (46%) are close behind as the digital audio advertising space continues to expand.

It’s not the same outlook for traditional media, although some types will see growth. A net of 17% of respondents expect to increase their resource allocations to TV product placements. TV accounts for 70% of a product placement market that is this year set to almost double 2016’s total.

A net of 15% of respondents also expect to increase their investments in out of home ads, while a net of 8% each will do so for TV sponsorships and TV ads in general. There’s not as much enthusiasm for radio (-3%), cinema (-14%), magazines (-45%) and newspapers (-46%), for which more marketers expect to cut than hike their investments in 2023.

Ad Equity Winners

Kantar also surveyed more than 18,000 consumers around the world to discover which channels they ranked highest in ad equity, meaning which they appreciate the most. Despite marketers’ affinity for digital formats, traditional media still performs strongly among consumers, with sponsored events ranking #1 in ad equity across all media channels, followed by magazines ads (#2) and cinema ads (#3).

For marketers, however, online video ads took top billing, ahead of sponsored events, and somewhat surprisingly, TV ads.

Lastly, Amazon topped the list for ad equity in the media brand category for consumers, supplanting last year’s leader, TikTok. Marketers, for their part, listed Instagram first, followed by Google and YouTube, with TikTok coming in 4th.

Article originally appeared on Marketing Charts.

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