UNITED STATES EDITION

The 2023
Industry Pulse
Report
The 2023 Industry Pulse Report
Study objectives and design

IAS partnered with YouGov to survey U.S. 33%

Field Date digital media experts to understand their
October 2022 perspectives on media challenges lying 24%
ahead and opportunities they will seek to
Participation harness in 2023. 20%
n=356 U.S. digital
media experts who In this annual report, we showcase the 8%
use programmatic key trends and emerging technologies
advertising that are expected to shape the advertising 8%
industry in the next year.
Methodology 4%
Online survey Sample includes:
2%
Advertiser / Brand Media Agency

Creative Agency Supply Side Platform 1%

Publisher Trading Desk

Ad network / Exchange Demand Side Platform

2
Introduction
As 2022 winds down and the industry reflects on the last year,
IAS conducted a deep dive into the trends and technology that
will shape the next: The Industry Pulse. Explore this report
and join us in helping publishers and advertisers anticipate,
innovate, and excel in the coming year.

Looking forward to 2023

This past year brought a roller coaster of ad spending1, which

may signal the end of ad spend surges prompted by the
pandemic. To prepare for 2023, industry professionals are
carefully curating media strategies in anticipation of increasing
macroeconomic headwinds. Innovation will be paramount
next year, with advertisers eager to lead disruption in
emerging formats, like 3D ads, while also expanding efforts in
established formats, like CTV.

3
Table of contents

01 02 03 04 05
Shifting industry Digital audio Elevating the CTV The social Mobile
priorities amplified experience standard maximization

06 07 08 09
A new dimension Media quality Key takeaways About IAS
in advertising concentrations

4
01
Shifting industry
priorities
Industry experts on:
Where they’re spending in 2023

5
Top media priorities in 2023
Digital audio
Topping the ranks of media priorities for 2023, media experts are
54% Digital audio*
anticipating an accelerated shift from terrestrial radio to digital music
and podcasts.

Digital video
50% Digital video**
Half of media experts plan to prioritize this format, likely due to
increasing consumption of CTV and growing options for ad-supported
video streaming services.
48% Social media
Social media
Media experts will continue to prioritize social media platforms,
allowing them to benefit from the high rates of consumer usage, ad
engagement, and the continued growth of influencer marketing.2,3 47% Mobile***

Mobile
Ad-supported streaming apps
Mobile remains a key priority for nearly half of media experts, a 26%
safe move considering that mobile ad spend in the United States is on CTV or OTT
expected to rise 14% year-over-year to surpass $194 billion in 2023.4

Which of the following environments will be a top priority for your organization in the next 12 months? (Select up to three); Which of the following advertising formats will be a top
Q priority for your organization in the next 12 months? (Select up to three) 6
*includes digital music streaming and podcasts; **includes digital video and CTV; ***includes mobile app and mobile web
Top media challenges Which of the following will be major digital media challenges for your organization?

in 2023
Decreasing access to consumer data/cookies* 51%

Buy-side and ad tech Ads delivered alongside risky or misleading content** 33%
Decreasing access to consumer data tops the
list of challenges in 2023 for ad buyers and Eroding consumer trust in major proprietary platforms 18%
ad tech, thanks to the deprecation of cookies,
consumers opting out of in-app data tracking, Contextual targeting 17%
and privacy legislation.
Supply path optimization/transparency of supply paths 16%
Another top challenge will be ad placement,
either delivering ads adjacent to risky content Assessment of campaign ROI 16%
or misinformation and fake news.

These concerns about data access and ad Ad fraud 15%

context highlight a need for solutions that allow
advertisers to target audiences based on the Poor viewability levels 15%
content they are consuming (i.e., contextual
targeting), maximizing audience reach in brand Cross device attribution/accurate measurement 14%
suitable environments.
Difficulty or confusion surrounding buying or selling 11%

Which of the following will be major digital media challenges for your organization in the next 12 months (Select up to three)? *includes high rates of consumers opting out of
Q in-app data, data privacy legislation, deprecation of third-party cookies; **includes ads delivered alongside risky content, advertising adjacent to fake news and misinformation
7
Top media challenges Which of the following will be major digital media challenges for your organization?

in 2023
Decreasing access to consumer data/cookies* 40%
Publishers
Choosing and integrating identity systems 36%
The sell-side also expects to face media
challenges in the coming year, with Monetizing with/without social platforms 32%
decreasing access to consumer data
topping the list of concerns. Maximizing yield 26%

Publishers also anticipate challenges with Monetizing first-party data 24%

identity system integration, maximizing
yield, and monetizing first-party data. Ads delivered alongside risky or misleading content** 23%
Ads delivered alongside risky or misleading
Providing scaled audience extension, minimizing overhead 20%
content is another top challenge for
publishers, highlighting how brand risk is a
Contextual targeting 19%
concern for both the buy- and sell-side.
Poor viewability levels 8%

Ad fraud 3%

Which of the following will be major digital media challenges for your organization in the next 12 months (Select up to three)? *includes data privacy legislation, deprecation of third-party
Q cookies, high rates of consumers opting out of in-app data tracking; **includes ads delivered alongside risky content, advertising adjecent to fake news and misinformation
8
Comparing challenges Which of the following media types will face challenges?

by media type
47%

For the second consecutive year, experts

think social media is most likely to face
serious challenges, although we’re seeing 2022
31%
30%
a steep drop compared to last year’s 2023
perception. 29%
28%
27%
The Metaverse enters the ranking of
top challenges for the first time — 24%
23%
understandably so as an emerging 22% 22%
23%

environment that media experts and 21% 19% 20%

consumers are only beginning to tap into. 18% 18%

15%
CTV is the next media type likely to face 16% 16%

challenges in 2023. With the growing

demand for CTV advertising, perceptions
of challenges for this media type increased
10-points year-over-year.
Social Metaverse Connected Mobile Linear Video Mobile Digital Podcast Digital
media TV web TV games app radio* video**
(in-feed)

In your opinion, which of the following media types will face serious challenges across the media industry in the next 12 months? (Select up to three)
Q Notes: *excludes podcast; **excludes connected TV
9
02
Digital audio
amplified
Industry experts on:
The migration of terrestrial
radio to digital audio formats

10
Digital audio builds The expert perspective
momentum
of media experts think audio media listeners will continue
Media experts agree that audio listeners
70% to shift from terrestrial radio to digital alternatives
will continue to migrate to digital formats.
Advertisers plan to follow suit — digital audio
ad spend is expected to grow 11% to surpass of media experts say advertiser investment in
$7 billion next year.4 62% *digital audio streaming will expand to match
adoption rates among consumers
A majority of industry experts think ad-
supported digital audio streaming will grow in
popularity among consumers. of media experts think ad-supported digital audio
61% streaming will grow in popularity among consumers
A quarter of media experts also plan to
prioritize audio and voice-assisted devices,
like smart speakers, for audio streaming.
Smart speakers are a productive environment of media experts say *digital audio holds the most
33%
for advertising, with one-third of consumers potential for innovation and opportunity
more likely to consider a brand after hearing
an ad on a smart speaker.5 of media experts will prioritize audio and voice-
25%
assisted devices in the next 12 months

Thinking about digital audio in the next 12 months, please indicate whether you agree or disagree with the following statements; Which of the following environments will be a top
Q priority for programmatic advertising in your organization in the next 12 months?; In your opinion, which of the following media types hold the most potential for innovation and 11
opportunity across the media industry in the next 12 months? *includes digital music and podcasts
Top challenges The expert perspective
in audio
of media experts think third party verification will

With growing inventory and innovations in

67% be important to ensure the quality of digital audio
streaming inventory
audio, industry experts also foresee risks to
media quality — a majority of respondents
are concerned about ad fraud in digital audio,
of media experts say ad fraud (e.g., bots, malware,
and more than half are concerned about
brand risk. 66% spoofing, etc.) will be a greater concern as the volume
of digital audio inventory grows
Because of this, industry experts see the
value of third party verification to ensure
of media experts think brand risk (i.e., impressions posing
media quality in digital audio.
harm to brands through association with unsuitable content)
55% around digital audio streaming content will increase as
additional inventory becomes available

of media experts say digital audio will face

32% serious challenges across the media industry
in the next 12 months

Thinking about digital audio in the next 12 months, please indicate whether you agree or disagree with the following statements; In your opinion,
Q which of the following will be major digital media challenges for your organization in the next 12 months? (Select up to three)
12
03
Elevating the
CTV experience
Industry experts on:
Expanded opportunities
in CTV and digital video

13
The transition from linear The expert perspective
TV to CTV will continue
to accelerate of media experts say the shift
66% in ad spending from linear TV
to CTV will accelerate
Nearly two-thirds of media experts anticipate that
consumers will continue shifting from traditional TV
to CTV, with even more respondents expecting ad
dollars to flow in the same direction.

The expanding offer of ad-supported CTV services of media experts say the shift
will create new advertising opportunities. In fact, as 60% in media consumption from
new avenues for CTV advertising develop, CTV ad linear TV to CTV will accelerate
spending in the U.S. will grow faster than any other
major ad format, rising 27% to surpass $26 billion
in 2023.6

With a growing consumer base and increased of media experts think digital video
advertising opportunities, 44% of media experts 44% and CTV have the most potential
agree that CTV and digital video will be rife with
for innovation in the coming year
potential for innovation in 2023.

Thinking about CTV in the next 12 months, please indicate whether you agree or disagree with the following statements; In your opinion, which of the following
Q media types hold the most potential for innovation and opportunity across the media industry in the next 12 months?(Select up to three);
14
As CTV adoption grows, The expert perspective
challenges will arise
of media experts think ad fraud will be a greater concern
The top concern for CTV in the next year is ad
66% as the volume of CTV ad inventory grows
fraud, which industry experts expect to see
more of as ad inventory grows.
of media experts say it will be critical for verification
Tracking CTV ad performance will also be an 63% platforms to unify targeting across platforms to track CTV
issue, as consumers cannot click on CTV ads. ad performance
It will be critical for verification platforms to
unify targeting across platforms to better track of media experts think CTV ads are vulnerable to
CTV ad performance. 62% particularly low rates of viewability, for example, with
ads served while the TV is off
Even with the expectation of CTV expansion
over the next year, supply, scale, and high
CPMs will be a major challenge for advertisers of media experts agree that CTV supply and scale
seeking to invest in this highly coveted format. 61% will be a major challenge for advertisers in the next
12 months

of media experts say high CPMs for CTV will be a

59% barrier for investment in the next 12 months

Q Thinking about CTV in the next 12 months, please indicate whether you agree or disagree with the following statements: 15
Digital video will also
face challenges
77%
of media experts say third party
verification will be important to ensure
the quality of digital video ads

Digital video encompasses all streamed or

downloaded video formats, including on
both proprietary platforms and open web. of media experts say insufficient transparency
The accelerated growth of digital video
will bring challenges, especially in terms of
61% in terms of media quality metrics for digital
video formats will negatively impact media
spend in the next 12 months
media quality.

Ad fraud and higher brand risk are top

concerns for industry experts, as well as the
of media experts think ad fraud will

74%
impact of insufficient transparency of media
be a greater concern as the volume of
quality metrics on ad spend for digital video. digital video ad inventory grows
Third party verification platforms will be a
key component to ensuring the quality of
digital video ads.
of media experts agree that brand

60% risk will increase as the volume of

digital video ads grows

Q Thinking about digital video (excluding CTV) in the next 12 months, please indicate whether you agree or disagree with the following statements 16
04
The social
standard
Industry experts on:
Sustaining ad spend and
consumer trust on social media

17
Social media remains an
advertising essential

91%
Social media remains a key advertising
environment, with more than nine-in-ten
respondents planning to advertise on social
platforms in 2023.

However, the past few years have shown a

mixed ad spend pattern for social media. After
massive social ad spend growth of 37% in 2021, of media experts plan
several platforms reported ad revenue declines
to advertise on at
in late 2022 and warned about challenges as
macroeconomic headwinds loom.1,6
least one social media
platform in 2023
Looking forward, social media ad spend is
expected to show a more sustainable 9% year-
over-year growth for the U.S. in 2023.7

Q In which of the following platforms will your organization buy advertising or monetize content in the next 12 months? (Select all that apply) 18
Comparing usage intent On which platforms will your organization buy advertising or monetize content?

by proprietary platform
2022
71%
Facebook and YouTube will remain the top 69%
2023
platforms for advertising and monetizing 65%

content in 2023.

Twitter rose into the third slot as one of the 52%

50%
only social platforms showing stable usage
46% 46%
intent compared to last year.* 44%

40% 40%
WhatsApp has emerged as one of the only
social media platforms to show an increase 31%
in usage intent for 2023. Given the high 27% 25%
rates of non-U.S. users in WhatsApp,9 this 23% 22%
20%
may signal rising interest in international 19%

advertising efforts on social media.

Facebook YouTube Twitter Instagram TikTok LinkedIn Spotify WhatsApp Snapchat

*Fieldwork for this survey was largely completed prior to Twitter’s

ownership change in October 2022.

Q In which of the following platforms will your organization buy advertising or monetize content in the next 12 months? 19
 Quality assurance
86%
of media experts say viewability is an
important metric when assessing in- is strengthening
feed social media campaigns
for social media
of media experts say social

33%
media will be vulnerable to ad
Media quality remains critical for
fraud in the next 12 months social media campaigns. Adequate
transparency around media quality
metrics, like viewability, will help
increase advertiser confidence in
served ads.
of media experts think social
media platforms provide adequate
transparency around viewability metrics 67% Media experts are less concerned
about both ad fraud and brand risk
on social media in 2023. One-third
of media experts cited both as top
concerns compared to about one-half
of media experts think social

33%
of respondents last year.
media will be vulnerable to brand
risk in the next 12 months

Thinking about in-feed social media in the next 12 months, please indicate whether you agree or disagree with the following statements; Which of the following media
Q types will be most vulnerable to ad fraud in the next 12 months?; Which of the following media types will be most vulnerable to brand risk in the next 12 months?
20
77% of media experts agree
that eroding consumer
trust in major social media
platforms will negatively
impact their media spend

Q Thinking about in-feed social media in the next 12 months, please indicate whether you agree or disagree with the following statements 21
 On which platforms is your organization likely to adjust media spend due to
The influence of eroding consumer trust?

consumer trust
65% 2022
Consumer trust continues to impact ad
spend on social media. Facebook is most 2023

likely to see adjusted spend as the result of 53% 53%

declining consumer trust, with Twitter and 49%
49% 46%
Instagram following closely behind. 42%
38% 38%
However, all major social media platforms 34%
saw dramatic drops in respondents planning 28% 46%
to adjust ad spend due to diminishing 27%

consumer trust, suggesting that the impact

of trust on ad spend may be decelerating. 23%

19%
16%

Facebook Twitter Instagram TikTok YouTube LinkedIn WhatsApp Metaverse

Q In which platforms is your organization likely to adjust media spend due to eroding consumer trust? 22
66% of media experts agree
that insufficient media
quality metric transparency
within social media
platforms will negatively
impact their media spend

Q Thinking about in-feed social media in the next 12 months, please indicate whether you agree or disagree with the following statements 23
The influence of Social media platforms most likely to be affected by insufficient transparency

transparency 77%
2022
Media experts will continue to demand 65%
56% 61% 2023
transparency in media quality metrics. 49%
54%
Furthermore, respondents plan to take
insufficient insights into consideration
when adjusting ad spend on social 39%
38% 38%
platforms. These adjustments are most 36%
25%
likely to influence Facebook, Instagram,
YouTube, and Twitter in 2023. 28%

22%
19%
18%

Facebook Instagram YouTube Twitter TikTok WhatsApp LinkedIn Metaverse

Q In which platforms is your organization likely to adjust media spend due to insufficient transparency in terms of media quality metrics (e.g., ad fraud, brand risk, viewability)? 24
05
Mobile
maximization
Industry experts on:
Innovations in mobile
environments

25
Mobile prioritization

29%
continues

Mobile ad spend surged 18% in 2022

compared to the previous year — this
growth is expected to continue in 2023, of media experts will
though at a slightly slower rate of 15%.4 prioritize mobile web
With U.S. mobile ad spend expected to advertising in the
surpass $194 billion in 2023, this format next 12 months

26%
will once again receive the largest portion
of digital ad spend: 70%.4

Consumers will continue to spend a large

chunk of their time on mobile devices
(more than 4.5 hours per day), though
of media experts will
consumption growth will return to pre-
prioritize mobile app
pandemic levels next year.9
advertising in the next
12 months

Q Which of the following environments will be a top priority for programmatic advertising in your organization in the next 12 months? (Select up to three); 26
Mobile is poised for
73%
of media experts think third party
innovation verification will be important to ensure
the quality of mobile inventory

Mobile videos will continue to capture

attention, with videos expected to account of media experts think expanding
for 20% of consumers’ time spent with
handheld devices — creating key advertising 65% 5G adoption will improve the mobile
media experience overall, creating
opportunities.10 new advertising opportunities

Respondents also predict that the continued

5G rollout will create new advertising
of media experts say increasing mobile

70%
opportunities by facilitating faster, more
efficient networks that will improve mobile video consumption will be a key
opportunity for buyers and sellers
media experience.

As mobile media opportunities expand and

industry experts embrace innovation, third
party verification will be crucial to ensure a of media experts say mobile* has
high quality mobile inventory. 41% the most potential for innovation
in the coming year

Thinking about mobile media in the next 12 months, please indicate whether you agree or disagree with the following statements; In your opinion, which of the following media
Q types hold the most potential for innovation and opportunity across the media industry in the next 12 months? (Select up to three); *includes mobile app and mobile web 27
Top mobile challenges The expert perspective
of media experts say ad fraud will be a greater
Mobile remains vulnerable to ad fraud and
brand risk, among other media quality threats.
54% concern across mobile environments regardless
of advertising formats
Ad fraud is a top concern for more than half
of experts, but that represents a 22 point
reduction year-over-year.
of media experts think mobile web video will be
Brand risk concerns remain steady. Most 22% vulnerable to brand risk
mobile formats are perceived as vulnerable
to brand risk by just under one-fifth of
respondents, with that portion rising for the of media experts say mobile web display will be
highly coveted mobile web video. 19% vulnerable to brand risk

of media experts report that mobile in-app video

18% will be vulnerable to brand risk

of media experts say mobile in-app display

17%
will be vulnerable to brand risk

Thinking about mobile media in the next 12 months, please indicate whether you agree or disagree with the following statements;
Q Which of the following media types will be most vulnerable to brand risk in the next 12 months? (Select up to three)
28
Contextual targeting
efforts will rise

Media experts agree that contextual

69%
of media experts think
targeting solutions will gain favor in mobile contextual targeting
app and web, likely due to brand safety solutions will gain favor
risks and consumer privacy concerns. In in mobile app and web
fact, more than half of experts believe environments
that it will become increasingly difficult to

52%
target ads and track engagement after the
deprecation of cookies.

Innovative contextual solutions will

be instrumental in helping advertisers
reach their desired audiences at scale,
of media experts say it will
regardless of the state of cookies.
be increasingly difficult
to target ads and track
engagement on mobile due
to deprecation of cookies

Q Thinking about mobile media in the next 12 months, please indicate whether you agree or disagree with the following statements 29
06
A new dimension
in advertising
Industry experts on:
The rise of 3D ads, gaming,
and the Metaverse

30
Virtual spaces
provide opportunities
Which media types hold the most potential for innovation and opportunity?
for disruption
As technology advances towards more 35%
Ad tech
immersive environments, media experts see 13%
the potential for advertising in these spaces.

Roughly one-third of industry experts agree

that the Metaverse holds strong potential 34% Metaverse
Buy side
for innovation as the emerging platform 19% Video games
continues to take shape.

Video games are also an up-and-coming

environment for advertising. Publishers are 30%
Publisher
particularly bullish, with more than one-third 34%
recognizing the potential for opportunities in
the year ahead.

In your opinion, which of the following media types hold the most potential for innovation and opportunity across the media industry in the next 12 months?
Q (Select up to three)
31
New environments on the The expert perspective
horizon: Metaverse
of media experts agree that the

The Metaverse is a virtual world where people

33% Metaverse holds the most potential
for innovation and opportunity
can socialize and collaborate through games,
entertainment, shopping, or work.

Although a Metaverse platform is yet to be fully

realized, more than one-third of respondents think
this new platform holds the most potential for
of media experts agree that the
innovation and opportunity in the coming year. 29% Metaverse will face serious challenges
in the next 12 months
At the same time, nearly three-in-ten media experts
believe the developing space may face challenges in
the next 12 months — but 15% are already planning
to be early adopters in content monetization in the
Metaverse. of media experts plan to buy ads and
15% monetize content in the Metaverse in
the next 12 months

In your opinion, which of the following media types hold the most potential for innovation and opportunity across the media industry in the next 12 months?(Select
Q up to three); In your opinion, which of the following media types will face serious challenges across the media industry in the next 12 months? (Select up to three); 32
In which of the following platforms will your organization buy advertising or monetize content in the next 12 months? (Select all that apply)
New formats on the
horizon: 3D ads
21%
of media experts agree that video
games hold the most potential for
innovation and opportunity

The future is here with 3D ads that allow brands

to display their products in 360 degrees, inviting of media experts believe video
novel advertising opportunities in 3D or virtual
reality environments, like gaming. 16% games will be most vulnerable to
brand risk in the next 12 months

This emerging format is rife with potential to

innovate the digital ad experience and create
immersive advertising experiences in virtual
of media experts will prioritize

19%
reality platforms.
advertising in video game
Even still, nearly one-in-five media experts are environments in the next 12 months
already planning to prioritize advertising in video
game environments next year. 15% will prioritize
3D ads, a format that will experience 10%
of media experts will prioritize
growth in 202311 — and as the format expands,
3D advertising for video gaming
these early adopters will hold the advantage. 15% or virtual reality environments in
the next 12 months

In your opinion, which of the following media types hold the most potential for innovation and opportunity across the media industry in the next 12 months?(Select up
Q to three); Which of the following advertising formats will be a top priority for programmatic advertising in your organization in the next 12 months? (Select up to three); 33
Which of the following media types will be most vulnerable to ad fraud in the next 12 months?
07
Media quality
concentrations
Industry experts on:
Privacy-first targeting,
consumer attention,
and driving outcomes

34
Top media quality The expert perspective
priorities for 2023

Industry experts plan to prioritize media quality

58% Contextual targeting

in 2023. Contextual targeting is the top priority,

with nearly 6 out of 10 respondents prioritizing
this solution to combat consumer privacy issues 57% Driving attention towards ads
or cookie deprecation while still targeting desired
audiences at scale.

Media experts will prioritize driving attention

towards ads next, followed by increasing 57% Driving outcomes such as clicks or conversions
outcomes. Enhancing media quality can drive both
outcomes and attention, as metrics like in-view
rate and brand safety predict increased attention
towards ads and higher conversions.12 56% Brand risk mitigation

Brand risk and ad fraud mitigation will also remain

top priorities for media quality in 2023.
54% Ad fraud mitigation

Q Over the next 12 months, what level of priority will your organization give to the following media quality initiatives when buying or selling digital advertising? 35
Environments most Which media types will be most vulnerable to brand risk?

vulnerable to brand risk 49%

2022

The digital environments perceived to be 2023

most vulnerable to brand risk have remained
steady since 2022, with the exception of 33%

social media.

While social media is still expected to be the

most vulnerable format to brand risk in 2023, 24%
23%
22%
perceptions of vulnerability on social media 19%
20%
19%
18% 18% 18%
dropped 16 points year-over-year to more 17% 17% 17% 16% 16%
17%
16%
14% 14% 15% 14%
closely align with brand risk perceptions in
other environments.

Brand risk is also perceived to be a growing

issue across display formats, as well as the
Social media Mobile web Mobile web Search Mobile Desktop Mobile Video Programmatic Connected Desktop
emerging video game environment. (in-feed) video display in-app
video
display in-app
display
games advertising TV video

Q Which of the following media types will be most vulnerable to brand risk in the next 12 months? (Select up to three) 36
Accountability for Who should be in control of brand risk mitigation efforts?

brand risk mitigation 2022

37%
35% 2023
34%
Media experts’ perception of 32% 31%
30% 30% 30%
accountability for brand risk mitigation 28%
continues to fall on experts across the 25%
24% 24%
supply chain. 21%
19%
Buy-side, verification platforms, and
publishers are seen as the most
responsible, though internet service
providers, supply-side, and demand-side
platforms don’t trail too far behind. Brands Agencies Verification tech Publishers Internet service Supply-side Demand-side
providers providers platforms platforms
Media experts can ensure brand safety
with verification solutions like content
adjacency, contextual avoidance, and
sentiment analysis.

Thinking ahead to 2023, who should be in control of brand risk mitigation efforts across the digital advertising industry?
Q (Drag and drop to rank from 1=most in control to 7=least in control)
37
Environments most Which media types will be most vulnerable to ad fraud?

vulnerable to ad fraud 54%

2022

The digital environments most vulnerable 2023

to ad fraud have also remained relatively
steady since 2022, with the exception of 33%

social media.

While media experts continue to perceive

social media as the most vulnerable format 24%
21% 21% 21% 21%
to ad fraud, perception of vulnerability in 20%
18% 19% 18%
17%
this environment has dropped 21 points 16% 16% 16%
14% 14% 14% 14%
year-over-year, back down to the levels 13% 13%
10%
predicted for 2021.

Ad fraud risk also appears to be a growing

concern for programmatic advertising
Social Mobile web Mobile Search Mobile Programmatic Connected Mobile Desktop Desktop Video
broadly as well as CTV, with perceived media
(in-feed)
video in-app
video
in-app
display
advertising TV web
display
video display games

vulnerability increasing for both compared

to 2022 estimates.

Q Which of the following media types will be most vulnerable to ad fraud in the next 12 months? (Select up to three) 38
Accountability for ad Who should be in control of ad fraud mitigation efforts?

fraud mitigation 2022

35%
34% 2023
Similarly to 2022, mitigating efforts 32% 32% 32%
31%
30%
against ad fraud will be viewed as the 29% 29%
27%
combined responsibility of all experts 26%
along the supply chain.
23%
21%
In 2023, verification providers will continue 20%
to be held most responsible for ad fraud
prevention, followed by brands and
agencies.
Verification tech Brands Agencies Publishers Internet service Supply-side Demand-side
Agencies have in particular have seen providers providers platforms platforms
a two-point increase year-over-year
— completely closing the perceived
responsibility gap between brands and
agencies.

Thinking ahead to 2023, who should be in control of ad fraud mitigation efforts across the digital advertising industry?
Q (Drag and drop to rank from 1=most in control to 7=least in control)
39
08
Key takeaways
Industry experts on:
Narrowing in on 2023

40
 KEY TAKEAWAY

1. Top digital
media priorities
Digital audio, digital video, and social media are the top
formats media experts will prioritize in the next year.

Digital Digital Social

#1 audio
#2 video
#3 media

41
 KEY TAKEAWAY

2. Digital audio climbs

to top priority
As consumers continue to tune into digital audio
streaming, ad investments will follow. Third party
verification partnerships will be important to ease
growing challenges with media quality in this format.

of media experts believe audio of media experts say ad fraud (e.g.

70% media listeners will continue
to shift from terrestrial radio to 66% bots, malware, spoofing, etc.) will
be a greater concern as the volume
digital alternatives of digital audio inventory grows

of media experts agree that of media experts think advertiser

investment in *digital audio will
67% third party verification will be
important to ensure the quality 62% expand to match adoption rates
of audio streaming inventory among consumers

*includes digital music and podcast 42

 KEY TAKEAWAY

3. The shift from linear

TV to CTV continues
Consumers and advertisers will continue to shift from linear
TV to CTV and digital video, bringing growing concerns about
media quality and opportunity for innovation.

of media experts say ad fraud of media experts think digital

will be a greater concern as
74% the volume of digital video ad 44% video and CTV hold the most
potential for innovation and
inventory grows opportunity

of media experts agree that the

66% shift in ad spending from linear
TV to CTV will accelerate

43
 KEY TAKEAWAY

4.
Social media budgets will
chase consumer trust and
transparency
Social ad spend remains a key part of digital strategy, but ad
spend will continue to shift based on eroding consumer trust
and media quality transparency.

of media experts are likely to

of media experts will monetize ad
91% spend in social media platforms
in the next 12 months
77% adjust social media ad spend due
to eroding consumer trust in major
social media platforms

of media experts are likely to

adjust social media ad spend due
66% to insufficient transparency into
media quality metrics

44
 KEY TAKEAWAY

5. Mobile is rife with

opportunity
Between consumers watching more digital videos on mobile devices and
expanding 5G technology, 2023 will bring innovation to the mobile space.
Third party verification will be necessary to maintain high quality media
inventory, especially to protect against growing concerns about ad fraud.

of media experts think third of media experts say expanding 5G

73% party verification will be

important to ensure the quality 65% adoption will improve the mobile
media experience overall, creating
of mobile inventory new advertising opportunities

of media experts agree that of media experts believe ad fraud

increasing mobile video
70% consumption will be a key
opportunity for buyers and
sellers
54% will be a greater concern across
mobile environments regardless
of advertising formats

45
 KEY TAKEAWAY

6. 3D ads and virtual

reality emerge
As virtual reality platforms like video games and the developing Metaverse
gain traction, advertisers are getting ready to monetize content in these
spaces. Along with innovative content ideas, like 3D ads, comes challenges
and risks to media quality that advertisers will need to mitigate.

of media experts think the

33% Metaverse holds the most
potential for innovation and
opportunity
of media experts believe that video
21% games hold the most potential for
innovation and opportunity

of media experts agree that

29% the Metaverse will face
serious challenges in the
next 12 months
of media experts say video
16% games will be most vulnerable to
brand risk in the next 12 months

46
 KEY TAKEAWAY

7. Top media quality

priorities
Industry experts will prioritize contextual targeting in 2023, allowing them
to combat consumer privacy issues or cookie deprecation to target desired
audiences at scale. Media experts will also prioritize driving attention and
outcomes, both of which can be accomplished with increased media quality.

Driving outcomes like

#1 Contextual targeting #3 clicks or conversions

#2 Driving attention to ads

47
09
About IAS
CONTACT US

www.integralads.com

FOLLOW US
Integral Ad Science (IAS) is a global leader in digital media
quality. IAS makes every impression count, ensuring that
ads are viewable by real people, in safe and suitable
environments, activating contextual targeting, and driving
supply path optimization. Our mission is to be the global
benchmark for trust and transparency in digital media
quality for the world’s leading brands, publishers, and
platforms. We do this through data-driven technologies
with actionable real-time signals and insight. Founded in
2009, IAS works with thousands of top advertisers and
premium publishers worldwide. For more information, visit
integralads.com.

48
REFERENCES
1
“U.S. Ad Market Falls For Fourth Consecutive Month, Signals Start Of New Recession,” Media Post, October 2022

² “Context of Social Media Ads Drives Engagement and Purchase Intent,” Integral Ad Science, February 2022

³ ”Influencer Marketing 2022,” eMarketer, August 2022

⁴ “Total Media Ad Spending, US,” eMarketer, October 2022

⁵ ”Extent to Which Hearing an Ad via Smart Speaker Would Make US Smart Speaker Owners More Likely to Consider a Brand,” eMarketer, April 2022

⁶ ”Retail Media Ad Spending Forecast 2022,” eMarketer, August 2022

⁷ ”Social Network Ad Spending, US,” eMarketer, October 2022

⁸ ”WhatsApp Users, by Country,” eMarketer, December 2022

⁹ ”US Time Spent with Connected Devices 2022,” eMarketer, June 2022

10
”US Time Spent with Mobile Apps, by Activity,” eMarketer, April 2022

11
”Mobile Gaming Ad Revenues,” eMarketer, October 2022

12
“Does Media Quality Drive Attention and Outcomes?” Integral Ad Science, March 2022

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