5 key stats on US digital ad spend growth in 2024

The majority (77.7%) of ad spend in the US is digital. Retail dwarfs all categories in terms of sheer size, but its position as a growth driver falls this year as telecom takes the top place.

From media and entertainment slump to food falling behind in consumer packaged goods (CPG), our analyst breaks down what’s driving digital ad spend growth in 2024.

1. Breaking tradition, retail’s digital US ad spend growth (10.6%) falls below the overall growth rate of 12.6%.

“Not only has retail been the biggest industry spender for as long as we’ve been tracking this, but their share has actually grown. They’ve gotten more important to the industry because retail companies have consistently increased their spend at a faster rate than the national average,” our analyst Ethan Cramer-Flood said on a recent webinar. “This year, not so much.”

• Retail US digital ad spend will reach $83.09 billion this year, per our forecast.
• That’s more than double the nearest competitor, consumer packaged goods (CPG), at $49.95.

2. Telecom takes the lead in digital US ad spend growth at 20.9%.

“Telecom had been in the doldrums a couple of years ago,” Cramer-Flood said. “Telecom companies recovered last year, and we started to finally see an increase and that momentum carried into this year.”

• Telecom’s US digital ad spend will reach $20.27 billion, the third smallest industry EMARKETER tracks.
• Telecom leans heavily on display ads (64.7%), focusing on nationwide campaigns.

3. Politics is pulling weight in the “other” category, driving US digital ad spend growth to 19.5%.

This year’s presidential election is making the “other” category’s ad growth skyrocket. That is unusual, Cramer-Flood said. “It won’t be [this big] next year, and it wasn’t last year.”

• Digital political ad spend will reach $3.46 billion this year.
• That’s more than double 2020’s $1.35 billion.

4. CPG ad spend growth is being driven by nonfood players.

“Food has traditionally been the biggest subcategory for ad spending inside of CPG, but this year, they’re not doing well,” Cramer-Flood said. “You’re seeing a pullback in snacks and unhealthy foods. Instead, you’re seeing explosive growth in beverages, both alcoholic and interestingly non-alcoholic. Toiletries and cosmetics is another one that is perennially strong.”

• CPG is second to retail in share of US digital ad spend, at 16.5%.
• Food industry ad spend growth steeply dropped from last year (5.4% in 2024 versus 19.6% in 2023), per our forecast. Toiletries and cosmetics is helping make up that loss with a 19.2% increase in 2024.

5. Media and entertainment drops to the bottom, at 2.7% growth.

“Media and entertainment had a very difficult year last year with the Hollywood strikes and the lack of content and we have seen that roll over into this year. We continue to see their ad spending growth deeply depressed,” Cramer-Flood said.

• Media and entertainment make up 9.3% of digital ad spend in the US this year, per our forecast.
• This category relies heavily on display (65.7%) and mobile ad spend (67.8%).

This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.