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Digital Ad Spending in Poland and in the world

TrafficWatchdog team

20.06.2023 r.

ads, advertising, digital, 2021, marketing, world, poland

Digital Ad Spending in Poland and in the world

source: own elaboration

During the Pandemic, in 2021, spending on online advertising reached record increases, so it shouldn’t be surprising that after the situation stabilized, the growth rate of marketing budgets devoted to online marketing decreased significantly. This doesn’t mean, however, that companies intend to spend less on online advertising – these values are still growing, although not as sharply as two years ago. What were the digital advertising expenditures in Poland and in the world in 2022? What are the forecasts for 2023 and beyond? We will talk about it in the following text.

Worldwide online marketing expenses

According to Oberlo, a dropshipping portal, global digital ad spend amounted to $567.5 billion in 2022, an increase of 8.6% compared to 2021. Is it a lot or a little? Of course, it depends on the reference point. This means that advertisers around the world spent average almost 9% more on e-marketing in 2022 than in the previous year. However, if we compare this increase to 2021, when according to the same statistics it amounted to almost 30%, the result won’t be that impressive, and the growth rate itself will turn out to be almost three times smaller.

Projections for 2023 from the same source amount to $626.9 billion globally spent on online advertising. This year is expected to be the first year in which advertisers will spend over $600 billion on digital advertising. This is to account for as much as 67.4% of total advertising expenditure. If this value turns out to be true, it will mean that advertisers will spend 10.5% more on online marketing than in 2022. According to the statista.com portal, a similar growth rate is to be maintained in the following years and amount to 11% (695 .96 billion) in 2024, 10.1% ($765.98 billion) in 2025 and 9.1% ($835.82 billion) in 2026.

Internet advertising spend in the US

According to the latest data, in the United States alone, USD 243.9 billion was spent on online marketing in 2022, and this year (2023) this amount is expected to increase to USD 271.2 billion. If these predictions turn out to be true, the year-on-year increase in this case will amount to 11.2%. This would be a significant increase compared to 2022 when the same value compared to 2021 was 8.8%. It’s clear that the trend in the US is similar to the global one (10.5%) and it isn’t surprising - because in 2022 almost 43% of all global funds allocated to online marketing went to the United States. As we read on the website oberlo.com, advertising expenditure on digital channels in the US is projected to continue to grow over the next few years. In 2024, they are to amount to USD 298.4 billion, in 2025 - USD 325 billion, in 2026 - USD 350.9 billion, and a year later, in 2027 - USD 376.5 billion. The average growth rate of digital ad spend in the United States in 2023-2027 is expected to be around 8.6%. For comparison, from 2019 to 2023 the average was more than twice as high and amounted to 18.6%, but this was mainly due to 2021, when spending on online marketing in the US increased by over 33% compared to 2020.

Digital Channels Ad Spending in Poland

As you can read in the latest Internet 2022/2023 Strategic Report, recently published (May 2023) by IAB Polska, the value of the online advertising market increased in 2022 by over PLN 615 million to over PLN 6.8 billion. This means a year-on-year growth rate of 10% - but is that a lot?

Until 2019, the average increase in online advertising spending was around 11-13%, but 2020 (specifically, the outbreak of the pandemic) shook the advertising market, causing the growth rate to drop to 5%, reaching the lowest result since 2007. Fortunately, it didn’t take long - already in 2021, a clear revival of sentiment was observed in advertisers’ spending and it ended with an increase of up to 20%, thanks to which digital communication strengthened its leading position in the advertising cake. Although in 2022 the growth rate of spending on digital communication returned to the pre-pandemic level (about 10%), it was still higher than the growth rate of the entire market. All this shows that the situation in Poland is similar to global trends, and the Polish online advertising market has joined the group of stable European markets. And what, according to experts, will the year 2023 look like?

In the report, we can read about 2 possible scenarios: the first assumes that the increase in spending on digital advertising in 2023 will fluctuate between 6-7%, while the second is a bit more optimistic and says that the current dynamics will be maintained (around 10%). In both cases, the value of the advertising market should exceed PLN 7 billion in 2023 (in 2022, advertisers spent over PLN 6.8 billion on online marketing), and perhaps even reach the hitherto unattainable limit of PLN 7.5 billion. According to experts, the situation will be the same in the coming years - the rate of growth of spending on online marketing in Poland will be year on year - from 6-7% to even 10% in more optimistic scenarios.

Above, we briefly presented online advertising spending in the world, in the United States and in Poland in 2022 and discussed the trends for the next few years. Will these statistics turn out to be correct? Time will tell. Although with the current development of technology, it is possible to determine such values with quite high accuracy, as shown in recent years, even specialists aren’t able to predict everything.

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