Paid search advertising revenues reached a new high in 2023 – though annual growth continues to slow, according to a new report.
In total, search accounted for $88.8 billion of a record $225 billion in U.S. digital advertising revenues, according to the IAB Internet Advertising Revenue Report: Full Year 2023, conducted by PwC. That figure represents a $4.4 billion increase over 2022.
Why we care. Paid search becomes more expensive and challenging every year, with less transparency. But advertisers continue to embrace paid search for one simple reason: it drives results for brands and businesses.
Paid search is still king. Search continues to own the largest market share of advertising – 39.5%, but that is down from 40.2% in 2022, 41.4% in 2021 and 42.2% in 2020.
The state of digital advertising. Resilient. Advertising continued to grow in a time of high inflation, rising interest rates and job cuts, according to the report. Of note from the IAB report:
2024 outlook. It’s “promising,” according to the IAB. Advertisers must, as always, adapt to changing consumer behaviors, consumption channels, privacy regulations and the ongoing generative AI revolution.
The report. You can read the report here (registration required).