The increased spending — rising from US$294 billion this year to US$520 billion in 2023 — represents an average annual growth of 15% over the next five years, according to a new study by Juniper Research.
The new research — Future Digital Advertising: Artificial Intelligence & Advertising Fraud 2019-2023 — found that Amazon’s emerging digital advertising business, driven by its “unparalleled consumer retail data”, would drive the company to capture 8% of global digital ad spend by 2023 – forecast to rise from 3% in 2018.
The report forecasts that Amazon’s advertising revenues will reach US$40 billion by 2023, a growth of 470% from its advertising revenues in 2018.
According to the study, Google’s advertising revenues will exceed US$230 billion by 2023.
But, despite this, the study forecasts that Google’s global market share of digital advertising spend will fall 1% over the next four years due to the growth of competing platforms, including Amazon and Baidu.
Digital advertising includes online, mobile browsing, in-app, SMS, DOOH (Digital-Out-of-Home) and OTT (Over-the-Top) TV services.
The report also anticipates advertising platforms will focus on increasing access to contextual advertising traffic data to maximise the efficiency of machine learning for targeting abilities.
As a result of these efforts, the report notes that 75% of global online and mobile ads are forecast to be delivered via AI-based programmatic advertising by 2023.
Research author Sam Barker said: “Giving algorithms access to the vast amounts of data generated by advertising traffic, including purchasing habits, user buckets and geographical location, is critical to enabling advertisers to secure a return on their ad spend.”