Market Insights Advertising & Media Advertising

Search Advertising - United States

United States

Ad spending in the Search Advertising market in the United States is forecasted to reach €127.10bn in 2024.
The sector is anticipated to experience an annual growth rate (CAGR 2024-2029) of 10.38%, leading to an estimated market volume of €208.30bn by 2029.
When compared globally, the United States will account for the majority of ad spending in the Search Advertising market in 2024, with €127.10bn.
By 2029, 66% of the total ad spending in this market will come from mobile.
The projected average ad spending per internet user in the Search Advertising market is expected to be €396.20 in 2024.
In the United States, Search Advertising is experiencing a shift towards personalized, data-driven strategies to maximize ROI and target specific consumer segments effectively.

Key regions: Australia, Japan, United States, Europe, Asia

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Analyst Opinion

The Search Advertising market in the United States has experienced significant growth in recent years, driven by changing customer preferences and the increasing importance of digital marketing.

Customer preferences: Customers in the United States have increasingly turned to online platforms to search for products and services, making search advertising a highly effective way for businesses to reach their target audience. With the rise of mobile devices, consumers have become more reliant on search engines to find information, leading to a greater demand for search advertising. Additionally, customers in the United States value convenience and personalized experiences, which can be achieved through targeted search advertising campaigns.

Trends in the market: One major trend in the Search Advertising market in the United States is the growing dominance of Google. As the most popular search engine in the country, Google's advertising platform, Google Ads, has become the go-to choice for businesses looking to advertise online. This trend is driven by Google's extensive reach, advanced targeting capabilities, and the effectiveness of its search advertising algorithms. As a result, businesses in the United States are increasingly investing in Google Ads to maximize their online visibility and reach their target audience. Another trend in the market is the increasing adoption of programmatic advertising. Programmatic advertising allows businesses to automate the buying and selling of ad space, enabling them to reach their target audience more efficiently and effectively. This trend is driven by the growing availability of data and advanced analytics tools, which enable businesses to make data-driven decisions and optimize their advertising campaigns in real-time. Programmatic advertising also offers greater transparency and control over advertising spend, making it an attractive option for businesses in the United States.

Local special circumstances: The United States has a highly competitive business environment, with a large number of companies vying for consumer attention. This has led to increased competition in the Search Advertising market, as businesses seek to outperform their competitors and capture a larger share of the market. As a result, businesses in the United States are investing heavily in search advertising to stand out from the crowd and attract customers.

Underlying macroeconomic factors: The strong and stable economy of the United States has played a significant role in the growth of the Search Advertising market. With a high GDP per capita and a large consumer base, businesses in the United States have a strong incentive to invest in advertising to reach their target audience and drive sales. Additionally, the United States has a highly developed digital infrastructure, with widespread internet access and advanced technology, making it an ideal market for search advertising. In conclusion, the Search Advertising market in the United States is experiencing growth due to changing customer preferences, the dominance of Google, the adoption of programmatic advertising, intense competition among businesses, and the strong macroeconomic factors. As businesses continue to prioritize online advertising and seek to maximize their online visibility, the Search Advertising market in the United States is expected to continue growing in the coming years.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on search advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising that is displayed on search result pages or next to organic search results.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global search advertising by aggregating advertising revenues from key players (Alphabet (Google), Microsoft (Bing), Baidu, Amazon, Alibaba, etc.). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.