While it is still up by double-digits, the IAB is saying numerous factors are contributing to more moderate digital ad revenue growth that is likely to continue through 2023.

Commissioned by the IAB and conducted by PwC, the latest overview of the global digital ad market found that revenues grew 10.8% year-over-year in 2022, totaling $209.7 billion USD. Growth was highest in the first half of the year, where digital ad revenues topped $100 billion USD for the first time, before slowing in the last six months of the year.

Though growth was still in the double digits, it is tempered somewhat from 2021. Part of the reason for the slowed growth is due to a comparison to the record-setting levels of the year prior, but David Cohen, CEO of the IAB, said economic uncertainty, geo-political unrest, a shifting regulatory environment and addressability changes also contributed to “moderation” in the market.

“Looking ahead, there is definitely still growth to be had, but it will be harder to achieve and likely less than we have become accustomed to,” he added.

The IAB analysis also found that buyers are diversifying spending, with digital video, audio and programmatic benefiting, the last of which had 10.5% year-over-year growth. On the other hand, social media revenue growth has slowed due to Apple’s ATT implementation.

Search revenue grew 7.8% year-over-year, but its share of spending is decreasing due to growth in video and display. Mobile advertising grew 14.1%, hitting a record high of $154.1 billion USD, helped by the growth of podcast advertising.

Diversification was not just seen in the platforms being bought, but in who the inventory is being bought from. Market share of the top 10 media companies declined in 2022, the first such dip since 2016, due to growth in mid-tier and long-tail publishers.