US Digital Ad Spending by Industry 2023 (2024)

FAQs

US Digital Ad Spending by Industry 2023? ›

Retail will spend $73.55 billion on digital advertising in 2023, over $34 billion more than the second-place spender, consumer packaged goods (CPG). The top three industries—retail, CPG, and financial services—will combine to account for 54.3% of all US digital ad spending this year.

US digital ad spending is in line for its lowest growth since the Great Recession. The outlook for the US ad industry is poor by recent standards, but total media ad spending will cross the $350 billion mark in 2023. Digital will account for 74.6% of that total, or $263.89 billion.

The global digital marketing market size reached US$ 366.1 Billion in 2023.

According to Gartner's CMO Spend and Strategy Survey, marketing budgets fell from 9.5% of total revenue in 2022 to 9.1% in 2023. 75% of CMOs say they're being told to do more with less. Because of this, 86% of marketers reported they must make changes to their marketing function to get “sustainable results.”

In that five years period U.S. digital ad spend will grow from 303 to 452 billion dollars. These figures will represent roughly 45 percent of global digital ad spending, which is expected to reach some 871 billion U.S. dollars in 2027, up from the 506 billion recorded in 2021.

In fact, recent trends indicate that global mobile internet advertising spending will surpass $400 billion in 2023, underscoring the importance of keeping up with current mobile advertising trends. Mobile app marketing also plays a significant role, especially considering 94% of Facebook's ad revenue comes from mobile.

According to a recent report published by eMarketer (source), global digital ad spending reached $389 billion in 2023 compared to only $234 billion spent on traditional formats – representing a significant shift in favor of internet-based platforms over their counterparts.

If that's not impressive enough, the digital advertising market is forecast to continue growing and reach $667.6 billion in 2024 and surpass $730 billion in 2025.

The Global Digital Advertising Market size is expected to reach $1041.9 billion by 2030, rising at a market growth of 14.5% CAGR during the forecast period. Advertisers create videos that match the look and feel of the platform, ensuring a more natural and non-disruptive viewing experience for users.

Overview of the U.S. market: digital first

The United States is the largest digital advertising market in the world, boasting a revenue of over 270 billion dollars in 2023. About eight out of 10 dollars invested in ads in the country were devoted to digital advertising.

Is there a recession in advertising in 2023? ›

A persistent ad recession

A few media companies have argued that a second-half 2023 recovery is possible, but we remain skeptical as we have yet to see any change in advertiser sentiment. Advertisers continue to delay purchasing decisions until closer to airtime.

Retail Media revenues showed 16.3% YoY growth in advertising revenues, reaching $43.7 billion in 2023. Key e-commerce players are all expanding their retail media platforms to enable future growth. Video advertising revenue experienced double digit (10.6%) YoY growth, rising to $52.1 billion in 2023.

One of the questions we get asked a lot is: 'How much budget do I need to spend on digital marketing? ' Many experts suggest you should spend between 5 to 15% of your revenue on marketing, and 10 to 50% of your marketing budget should go to digital.

Among the various industry verticals in the country, the telecom sector devoted 64 percent of its total ad expenditure in 2023 to digital. The e-commerce sector followed second and was the only other vertical to allocate over 60 percent of its ad spend to the medium.

The Digital Advertising and Marketing market in the U.S. is estimated at US$223.2 Billion in the year 2022.

In 2023, spending on digital transformation (DX) is projected to reach 2.15 trillion U.S. dollars. By 2027, global digital transformation spending is forecast to reach 3.9 trillion U.S. dollars.

It was calculated that the digital advertising spending worldwide amounted to 549.51 billion U.S. dollars in 2022. The source projected that by 2027, the spending would reach 870.85 billion dollars.

During 2023, global influencer marketing spending reached 34.08 billion, while in the U.S. it amounted to 26.09 billion dollars.

Digital marketing costs $51 – $10,000 per month on average in 2024. How much you'll pay for digital marketing depends on several factors, like the strategies you want to invest in, your chosen agency, the size of your business, and more.