US digital ad spend to exceed $300 billion in 2024

The news: US digital advertising spending will surpass $300 billion for the first time in 2024, reaching $309.3 billion, a 15.1% increase over 2023, according to our November forecast update.

Key stats:

• Growth has accelerated significantly from 10.6% in 2023, exceeding our Q1 2024 projection of 12.6%.
• Digital ad spend is forecast to reach $460.5 billion by 2028.
• Video ad spending will top $100 billion in 2024, reaching $111.6 billion.

Why it matters: The digital advertising landscape shows strong momentum.

• Double-digit-percentage growth is expected to continue through 2026.
• Growth will moderate to 9.7% in 2027 and 9.2% in 2028 due to tougher comparatives.
• Display advertising continues to gain share over search, reaching 56.4% of digital spend in 2024.

Video's growing dominance:

• Video will account for 63.6% of total US display ad revenues by the end of 2024.
• This share will increase to 71.1% by 2028.
• Social network video (30.0% growth) and subscription OTT video (47.3% growth) are driving 2024's expansion.
• Subscription OTT video revenues of $11.26 billion represent 21.5% of social video's $52.25 billion.

Format dynamics:

• Display advertising will capture 85.7% of the $90 billion in additional ad spending between 2024 and 2028.
• Search's share of digital spend will hold relatively steady at 41.5% in 2024.
• Retail media networks and AI search capabilities are expected to drive search growth.
• Nonvideo formats will account for just $12.75 billion of incremental spend through 2028.

Our take: Digital advertising's robust growth reflects the market's continued evolution, with video emerging as the dominant force. By 2028, digital video will account for over 40% of total digital ad spending, a milestone not previously forecast. This shift toward video, particularly in social and subscription OTT environments, signals a fundamental change in how advertisers are reaching audiences.

Go further: Consult our US digital ad spending forecast.

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