Industry Insights: November 8, 2023

Digital Advertising: The Comeback Story of 2023

Hello, friends! Thanksgiving is creeping ever closer, and that fat turkey in the yard is looking better and better. This week, we’re talking GDP, your massive car payment problems, and the comeback kid: digital advertising. 

Big-Picture:

Recession rumors are swirling, but consumers are determined to keep the party going. Government data just dropped a bombshell: GDP didn’t just rise last quarter; it soared like an eagle with a 4.9% increase, leaving analysts scratching their heads. The US is apparently hell-bent on catching up to the pre-pandemic trend, according to the Treasury Department. You go, America!

Meanwhile, the S&P 500 has become a drama queen, officially entering “correction territory” after plunging 10% since its July peak. Investors are anxiously biting their fingernails over interest rates, geopolitical cliffhangers, and lackluster Q3 earnings. It’s the stock market’s longest losing streak (and longest-running soap opera) since the initial pandemic shocker in 2020.

Oh, and about those car payments? Millions of Americans are currently engaged in a showdown with their auto loans, and delinquency rates haven’t been this high since…well when grunge music was cool. Adding to the drama, interest rates for new cars decided to party at 10.48% last month, and the average car loan payment is now a whopping $733. Ouch!

Meanwhile, Artificial Intelligence (AI) is living its best life, with Google Search trends showing it’s the hottest thing since sliced bread. But will it conquer the tech world or join the ranks of “blockchain” and “metaverse” as the next big flop? It’s time to grab some popcorn and check out the trends.

Marketing Industry:

Guess who’s back, back again? Digital advertising’s back; tell a friend. Meta, Google, Microsoft, and Snap are all flexing their sales muscles with impressive year-over-year growth. Meta’s ad impressions shot up by 31%, and the price of an ad dropped by 6%. Digital marketers everywhere take a breath and rejoice. We’re back!

The holiday season is approaching, and consumers are reaching for their wallets with a glint in their eyes. On average, people plan to spend $1,652 on holiday shopping, a 14% hike from last year and surpassing pre-pandemic levels. Watch out for those festive shopaholics! 22% of Americans are even considering taking out loans to fuel their holiday shopping spree, with two-thirds setting their sights on a debt of over $1,000. Santa’s sleigh is going to be heavy this year!

Meta is in hot water, facing a whopping 42 lawsuits that claim their algorithms are turning young minds into content-addicted zombies. These lawsuits arrive on the heels of the US Surgeon General issuing a public advisory that social media significantly risks kids’ health. As a result, Meta may have to put some safeguards in place to reduce its impact on the rising teen mental health crisis. Parental guidance is advised!

Meanwhile, Instagram is spicing things up with a “nearby” feed featuring Stories from local businesses. Looks like the app is trying to be your friendly neighborhood matchmaker.

Just for Fun:

Pack light if you’re flying home for Thanksgiving because your flight will be a sardine can in the sky! The TSA revealed that 2.48 million people strutted through airport security in the week ending on October 23, a 10% surge compared to the same week in 2019. Looks like we’re all craving some in-person turkey and grandma’s secret stuffing recipe.

It turns out we’re all corny on Zoom. 55% of us can’t resist giving a virtual wave goodbye when the Zoom curtain falls. Cringe.

That’s all our industry insights for now, friends! You can’t see me now, but I’m enthusiastically waving goodbye. 

Your friendly Industry Insights devotee, 

JD