Digital advertising formats in the U.S. - statistics & facts
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The world's largest digital advertising market continues to evolve and diversify. In 2023, internet ad spend in the U.S. amounted to an estimated 269 billion U.S. dollars, and according to the latest projections, this figure will exceed 450 billion by 2028. The largest share of ad revenue is generated via search, which has been the leading digital ad format in the U.S. for many years. In 2023, it accounted for around 40 percent of online ad revenue, but while it spearheads the industry, other formats are gaining importance.
Despite that, over half of U.S. marketers were planning to increase search spending in 2024, and social media is not expected to even come close to the level of spending search ads attract in the coming years. They put high hopes in artificial intelligence, e.g., with over nine in 10 saying that they believed that AI-supported chat-based search would be an effective marketing tool. AI is being incorporated into virtually all areas of digital marketing, and brands will soon feel the impact of this development.
Search advertising leads the field
In 2023, digital search advertising spending in the U.S. amounted to approximately 118 billion dollars, marking a year-over-year increase of around 12 percent. Current projections indicate that spending growth across this and other ad formats will gradually plateau by the end of the decade. Google was the undisputed king of search advertising, with the company’s ad revenue reaching a record 238 billion dollars in 2023.Audio entertainment unlocks new advertising potential
Audio advertising has made significant leaps following the growing popularity of digital audio content. Previously considered an optional add-on, audio promotion via online radio, podcast, or music streaming services has become an essential part of many marketing portfolios. In 2023, digital audio advertising spending in the U.S. stood at an estimated seven billion dollars, up 19 percent from 2022. In the same period, U.S. podcast advertising revenue increased by 25 percent, signaling the bloom of a new era for audio entertainment and content marketing alike.Social media marketing keeps reaching new heights
Thanks to the rapid adoption of mobile devices, social media has become one of the most relevant digital advertising formats. As user numbers for social networks and photo-sharing platforms continue to rise, social media ad spend in the U.S. is soaring at a similar pace, reaching an estimated 72 billion U.S. dollars in 2023. The three largest players – Facebook, Instagram, and TikTok – accounted for over 90 percent of the value, with market leader Facebook attracting an impressive 36 billion dollars.Consumers swayed by social & search
Social channels are also consumers’ favorites. During a 2024 survey, two-thirds of U.S. adults said that Instagram and TikTok ads were the best way for brands to reach them, followed by YouTube and podcasts. In the same survey, the latter two were also named the media with the least annoying ads. Podcasts are also gaining in importance as a product discovery channel. While consumers are into social, video, and audio, advertisers keep investing in search, which generally does not enjoy much trust. Six in 10 U.S. consumers believed that online search engines increased the number of results sponsored by advertisers. Additionally, one in four found it difficult to differentiate between sponsored and non-sponsored search results.Despite that, over half of U.S. marketers were planning to increase search spending in 2024, and social media is not expected to even come close to the level of spending search ads attract in the coming years. They put high hopes in artificial intelligence, e.g., with over nine in 10 saying that they believed that AI-supported chat-based search would be an effective marketing tool. AI is being incorporated into virtually all areas of digital marketing, and brands will soon feel the impact of this development.
