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RESEARCH, ANALYSIS & TRENDS
market worth $1trn in 2025”, James McDonald, Director base scenario assumes that impact is muted, we will
of Data, Intelligence & Forecasting, WARC says. “New continue to review that position each quarter”, he con-
coronavirus variants – such as Omicron – may have a cludes.
negative impact on our current outlook, and while our
Trends by online media and format by WARC say they intend to up spend on TikTok
next year, the highest rate across all online plat-
• E-commerce: The sector is expected to lead forms.
growth to 2023, by when the market’s value will
have more than doubled from 2020’s level to a total • OTT video: Premium online video platforms – aka
of $137.2bn. Growth in China’s advertising market over-the-top (OTT) – such as YouTube and Ama-
is cooling but in the west it is booming, with Ama- zon Prime Video, were worth a combined $63.7bn
zon on course to amass over $57bn in advertising to advertisers in 2021, up 41.6% from a year earli-
revenue by 2023 (up 72% from this year and 308% er. Further growth, of 19.7% and 14.2%, is project-
from 2019, prior to the pandemic). Two in three ed during 2022 and 2023 respectively, with
practitioners already committing budgets to Ama- YouTube leading the charge and set to be worth
zon are intending to increase that spend, while $41.4bn by the end of the forecast period.
heightened advertiser demand is pushing up the
average cost-per-click. • Paid search: Alphabet is the world’s largest media
owner and Google the largest individual platform:
• Social media: This was the fastest-growing online its advertising revenue rose by 40.6% to $146.3bn
sector in 2021, with spend rising 41.9% – or this year, taking 79.7% of all search spend and
$55.7bn – to a total of $188.8bn this year. Insta- 19.0% of all advertising spend worldwide. Google’s
gram grew to become the largest social media plat- growth is set to ease to 14.8% in 2022, though
form in 2021 after overtaking the core Facebook 57% of practitioners surveyed by WARC are plan-
platform for the first time. Instagram is forecast to ning to increase spend on the platform next year.
grow to control over a third of the global social me-
dia market in 2023. TikTok saw ad revenue rise • Online audio: Advertising spend on online audio
151.5% this year and is expected to record growth rose by a third to $5.4bn in 2021, with podcast
of 75.4% in 2022. Two in three marketers surveyed spend up 50.9% and streaming up 28.4%. Both
formats are expected to see gains to 2023, by
December 2021: Customer Journey Analytics 7
