Digital Advertising refers to the practice of promoting products or services through online channels by purchasing ad placements with the aim of driving traffic, increasing brand awareness, and generating leads or sales using data-driven strategies. This form of advertising uses the internet and various technologies to target audiences based on their demographics, online behavior, and personal interests.
Digital Advertising uses the internet to deliver marketing messages to internet users in various forms. This includes digital video, search engine, social media, digital banner, digital audio, digital classifieds, connected TV, in-app, and influencer advertising.
The market comprises digital advertising spending, users, average revenue per user, advertising share by industry, advertising share by device, brand shares, and digital ad spending share (programmatic and non-programmatic). The market only displays B2B spending and users for the above-mentioned channels. Figures are based on digital advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions for each market can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.
Digital advertising with online revenues from video, banner, classifieds, and search advertising in Desktop and Mobile revenues
Social Media Advertising with revenue from social networks or business networks
Digital advertising has overtaken traditional advertising. In 2018, digital advertising became the dominant advertising medium, accounting for more than half of global advertising spending. The Digital Advertising market is growing because people's behavior has shifted from the offline to the online world. Within 10 years, the number of internet users has grown to twice its size from 2.3 billion in 2012 to 5.1 billion in 2022.
A variety of large tech companies lead the Digital Advertising market. Key players in the market include Alphabet, Meta Platforms (Facebook), Microsoft, Facebook, Amazon, Tencent, Baidu, ByteDance, and others. Growth in the Video, Banner, Social Media, and Search Advertising markets is comparably higher than in the Classifieds market due to the rapid increase in social media consumption and online shopping.
Before the pandemic, the Digital Advertising market was showing signs of a solid growth rate. However, the pandemic has accelerated digital adoption, and the effect will permanently stay, which will lead to more robust growth of the Digital Advertising market in the following years.
Data encompasses enterprises (B2B). Figures are based on digital advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers search advertising, banner advertising, video advertising, classifieds, and social media advertising.
Market sizes are determined by a combined top-down and bottom-up approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party reports, and survey results from our primary research (e.g., Statista Global Consumer Survey). Next, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and digital consumer spending. This data helps us estimate the market size for each country individually.
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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.
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.