Online Advertising Expenditure Hits Record High, Quadruples Over a Decade

Online advertising expenditure reached a record high last year, with 59.5 billion korunas spent. This figure represents an annual increase of 2.7 billion, or nearly five percent, making it the highest investment in this type of advertising to date. Compared to a decade ago, the expenditure was a mere 13.3 billion korunas, showing a more than fourfold increase.

Last year’s growth was primarily driven by display advertising, which grew by six percent. This advertising category includes banners on content networks, websites, and social media platforms. Search advertising also saw a three percent increase. From a trading perspective, programmatic buying of display advertising grew by seven percent.

Despite facing an economic downturn and double-digit inflation in 2023, only a slight increase in online investments was expected, according to Michal Hanák, Chairman of the Association for Internet Development (SPIR). However, as the economic situation improves, online advertising is expected to experience a turbulent period this year due to the announcement of the end of third-party cookie support in the dominant Chrome browser, as announced by Google. Hanák added that for the first time in measurement history, it’s impossible to predict future developments as they did in previous years.

SPIR and other associations, including the IAB Tech Lab, have criticized Google’s approach to the Chrome browser. The company’s current steps are creating great uncertainty in the advertising market for publishers and advertisers who still do not know all the details of how the solution will look after the end of third-party cookie support, added SPIR Vice Chairman Michal Feix.

Expenditure on the display above advertising reached 42.2 billion korunas in combined prices. Display advertising includes advertising on content networks, especially on Seznam Sklik, Google Ads, Facebook, RTB traded advertising and native advertising. Search advertising is the second most used form of advertising, into which advertisers invested 16.1 billion korunas in real prices.