Advertising revenue hits a 5-year low, that means for the industry / digital information world

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Advertising revenue hits a 5-year low, that means for the industry / digital information world

The digital landscape is largely driven by advertising revenue, and evidence shows that this revenue has been declining in recent years. A report from PlayWire recently announced that ad revenue has hit its lowest level in half a decade, meaning marketers, YouTubers and other people who depend on that revenue have less to do than they otherwise would have.

With that all said and now clear, it’s important to note that we’re in a time of demonstrable decline in ad revenue. Between the months of December and January, revenue can drop by a whopping 77%, but despite the fact that that’s the case, 2022 also represented the lowest total since December when all factors are factored in and accounted for.

Compared to 2021, the month of December brought 30% less revenue in 2022. That’s worrying, as something like this could potentially create an imbalance within the industry that could take several years to even materialize.

The rise of Covid a few years ago may have played a role in the overall sales declines. However, the situation has not improved, although the pandemic has more or less disappeared from public awareness. Advertisers have a pessimistic outlook on the future of the industry and this could result in the recovery process taking much longer than necessary in the near future.

It’s easy to assume that most of the current sales decline is due to the infamous December-to-January drop, but that would ignore the fact that December sales were also stubbornly low.

Based on the data presented in this study, the March 2023 ad revenue represents an ad index of just 23. The index has never fallen anywhere near this low, even in the absolute heyday of the pandemic. This doesn’t bode well for the future of the industry, and most major players are worried about the consequences of this decline in the end.

countless site ownerexperienced webmasters and Google AdSense web publisher Around the world they are starting to complain about it. Some of them said that for the first time in over a decade they had not met the required threshold to claim a monthly payment. These site owners were often making tens of thousands of dollars a month from AdSense revenue, and failing to meet the minimum payment is a clear sign that something is wrong.

The post-pandemic recovery from the 2019 and 2020 lows led some people to believe that a brighter future was on the horizon. Unfortunately, a variety of factors including global economic crises, inflation, and shifting advertising trends have caused ad revenue to fall again, so we’ll need another miracle to turn things around. The data from Ezoic’s Ad Revenue Index shows that ad revenue from global websites will continue to slow in 2023. While Optad360 statistics of “programmatic advertising revenue from websites and mobile apps” shows a record-low index value.

However, experts say there may still be hope. While the first half of 2023 is likely to be a nightmare for people who depend on AdSense revenue in some way, it’s worth mentioning that hopefully the second half of the year will be far better and this will bolster support for the long-term performance of the industry .

It will be interesting to see how it goes. Industries that depend on advertising revenue are in constant crisis, and as privacy and data protection laws continue to limit their opportunities for growth, only time will tell us the right solutions. Either way, 2023 will be a litmus test that will decide the future of the industry.

Continue reading: Game app marketers invest $27 billion in advertising despite economic downturn

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