Study

Digital Ad Spend 2023 – 2024 (Industry, Global, US and Market size)

Digital advertising is a big business, and it’s getting bigger year by year.

Just in the United States, spending on digital ads is expected to hit an incredible $271.2 billion in 2023 (a 11.2% growth than 2022’s stats). And we’re not stopping there—the global digital ad spend figure in 2023 has reached $601.8 billion.

Different channels like social media and search engines are taking up a significant chunk of this spending.

Ready to get into the nitty-gritty of the stats, trends, and practical insights on digital ad spend? You’re in the right spot. Keep reading to explore more.

Digital Ad Spend Statistics 2023-2024 (Top Picks)

  • Global digital ad spend will reach $601.8 billion in 2023, with a 9.7% annual growth rate from 2023-2032, showing increasing ROI confidence in digital ads.
  • In 2023, search advertising received the biggest chunk at $279.3 billion, indicating companies are investing heavily to be at the top of search results.
  • By 2027, 69% of digital ad spend will be on mobile, emphasizing the importance of mobile optimization as people are glued to phones.
  • In 2027, 81% of digital ad money will go toward programmatic advertising, transitioning to more automated, precision ad targeting.
  • The United States remains a key digital ad market, with projected 2023 spending of $271.2 billion, highlighting the significance of U.S. audiences.
  • YouTube’s massive reach makes it a major player for video ads, with high 83% mobile ad viewer engagement, presenting huge potential.
  • Social media ad spend will surpass $300 billion by 2024, showing platforms’ tremendous reach and ability to captivate users’ attention.
  • The U.S. will account for 42% of global digital ad spend by 2026 at $395 billion, reflecting its dominance as advertisers target American consumers.
  • Real estate enjoys the lowest Google Ads CPC at $1.40, giving the sector a significant edge in cost-effective client outreach.
  • By 2027, 80% of total ad spending will be digital, signaling a monumental shift as businesses buy into online platforms.

Digital Ad Market Size 2023-2024

YearAd Spend (in USD Trillion)
2022$0.5
2023$0.55
2024$0.6
2025$0.65
2026$0.71
2027$0.78
2028$0.86
2029$0.94
2030$1.04
2031$1.14
2032$1.26

In 2022, digital ad spend globally stood at a whopping US$ 0.50 trillion. Forecasted to hit around US$ 1.26 trillion by 2032, we’re seeing an annual growth rate of 9.70% from 2023 to 2032.

This consistent growth rate indicates increasing confidence in digital advertising’s return on investment (ROI). Companies and brands are recognizing the power of online platforms to reach their audiences.

US$679.80bn on digital ads in 2023

Next, with an anticipated expenditure of US$679.80bn on digital ads in 2023, there’s a clear focus on digital avenues to capture consumer attention. This significant investment highlights the importance of a strong online presence in today’s market.

Search Advertising US$279.30bn

Furthermore, out of these all, the biggest chunk, US$279.30bn, is going towards Search Advertising. This tells us that companies are spending big to be the first thing you see when you search online.

Nearly 69% of all digital ad on mobile

Jump to 2027, and mobile is the star. Nearly 69% of all digital ad money will be for mobile ads. It’s clear: advertisers know we’re glued to our phones and want to reach us there.

That’s not all for 2027. About 81% of digital ad money will be used in programmatic advertising. This transition towards automated ad placements shows a push for efficiency and targeting precision.

United States remains a major hub for digital advertising

The United States remains a major hub for digital advertising, with a projected spend of US$271.20bn in 2023. This hefty figure highlights the U.S. market’s significance and its role in the digital ad space.

And when it comes to advertising it’s essential to know Google plays a key role. Did you know that in 2022, Google had about 25% of the entire digital ad market? That’s a significant size of the market.

Sources: Precedence Research, Statista

Global Ad Spend 2023-2024

For every $1.60 that small businesses put into Google Ads, they’re making around $3 in revenue. What does this mean? Well, it’s pretty clear: Google Ads is offering a good return on investment (ROI) for smaller companies.

If you own a small business, this could be a signal to start investing, or maybe even increase your current ad budget.

The global digital ad spend isn’t slowing down anytime soon. By 2024, we’re looking at a whopping $645 billion in total digital ad expenditures. The upward trend signifies how much businesses are relying on digital platforms to reach their audiences.

If you’re a small business owner thinking about Google Ads, expect to spend roughly between $9,000 and $10,000 monthly on pay-per-click (PPC) advertising. While it might seem like a big chunk of change, remember the ROI we talked about earlier. It shows that businesses are willing to invest in PPC because it pays off.

Did you know that YouTube is the second-most-visited site on the web and a major player for Google’s video ads. The platform’s growth has been nothing short of incredible. If you’re not considering YouTube as an advertising platform, you might want to start thinking about it.

When it comes to mobile ads on YouTube, viewer attention is captured 83% of the time. That’s a high engagement rate. 

Looking forward, the mobile ad market is about to notice a significant growth reaching around $399.6 billion by 2024. Given how glued people are to their smartphones, it’s not surprising. Mobile advertising is the next frontier, and it’s expanding quickly. Start prepping your mobile ad strategies now.

Sources: Cardinal Digital Marketing, Clickatell, Lunio, Forbes, Ipsos, Statista

Online Advertising Costs 2023-2024

When it comes to advertising online, let’s be real: you’ve got to spend money to make money. But how much should you expect to spend on online advertising? Let’s figure it out!

So, first off, let’s talk about Google Ads. You’ve got two choices here: the Search Network and the Display Network. If you opt for the Search Network, expect to pay around $2.32 for every click you get.

Now, that might sound a bit steep, but remember, these are people actively searching for what you offer. In contrast, the Display Network is a bit more wallet-friendly at just under $0.58 per click. The trade-off? These folks might not be actively looking for your product, but you’re still getting your name out there.

Sure, clicks are great, but what you really want is action—sign-ups, purchases, you name it. On Google Ads, the average cost per action (CPA) clocks in at $59.18. Yeah, it’s a chunk of change, but consider what you stand to gain if that action turns into a loyal customer.

$50 for a single click

Next, think about keywords. You can end up spending $50 or even more per click for highly competitive keywords. You heard that right—$50 for a single click! So it’s crucial to choose the keyword competition wisely when bidding on keywords.

Next, think about keywords. You can end up spending $50 or even more per click for highly competitive keywords. You heard that right—$50 for a single click! So it’s crucial to choose the keyword competition wisely when bidding on keywords.

Moving on to social media, the typical cost per thousand impressions (CPM) on Facebook hovers around $10. But, if you’re eyeing Instagram, you’ll find a more affordable CPM at about $5. Both have their merits, but Instagram offers a cost-effective way to reach younger audiences.

Sources: WordStream

Advertising Spend By Channel 2023-2024

In 2023, the whopping figure for social media ad spending was around $270 billion, and it’s not stopping there. By next year, it’s predicted to grow past the $300 billion mark.

What does this tell us? Simple: social media platforms are great for advertisers. Brands are recognizing the unparalleled reach and user engagement these platforms offer, and they’re more than willing to invest big bucks.

In 2020, the global ad spend per user on social media was $28.30.

Fast forward to 2023, and we see that a significant chunk of this—about $22.4—was devoted to mobile ads. Even better? This per-user mobile ad spend is anticipated to climb to over $33 by 2025. This reveals a trend toward mobile optimization, as brands are focusing more on reaching people where they spend the most time: their phones.

Now, you may wonder which countries are spending the most on social media ads? Well, the answer is the US with a huge sum of $72 billion in 2023.

After that comes China and the UK,  spending $71.38 billion and $9.7 billion, respectively. So what’s the takeaway here? The U.S. market is still the leader in digital advertising, but competition is one the rise for sure.

In a 2023 survey, 67% of marketers said they use Facebook ads either often or sometimes, making it the most popular platform for advertising. Instagram was the runner-up, capturing 52% of marketers’ attention. This highlights the power of Facebook’s advertising ecosystem, which also includes Instagram.

Clearly, advertisers are going all-in on these platforms to capitalize on their vast, engaged user bases.

The surge in ad spend across different channels, especially social media, speaks volumes about where digital advertising is headed. Brands are taking a targeted approach, focusing on mobile-optimized ads and heavily investing in platforms with high user engagement.

Sources: Statista 1, Statista 2, Statista 3, Statista 4

US Digital Advertising Spend 2023-2024

54% of all media spending in the US is now funneled straight into digital channels. That’s more than half! This signifies a shift in how companies are approaching advertising

Next, with 24% of all global advertising dollars targeting the US, it’s clear that advertisers around the world see high value in reaching American audiences

When you zoom in on the platforms, Facebook stands out specifically. In the US, the social media giant has hauled in more than $31 billion.

US spending to skyrocket

Estimates suggest that US digital ad spending will shoot up by a whopping 50% between 2023 and 2027. We’re talking about an increase from $264 billion to $395 billion in just five years. This growth strategy is indeed impressive.

Estimates suggest that US digital ad spending will shoot up by a whopping 50% between 2023 and 2027. We’re talking about an increase from $264 billion to $395 billion in just five years. This growth strategy is indeed impressive.

By 2026, about 42% of the entire world’s digital ad spend will be American. That means out of the expected $836 billion in global ad spend, the US will have a huge share of the market.

Remember when companies started putting more money into mobile ads around early 2017? Well, that trend has only intensified. Come 2023, an estimated $195 billion will be devoted to mobile advertising in the US alone.

Sources: Global Ad Trends Report, Business Insider, Statista, Statista

Advertising Industry Statistics 2023-2024

You might be surprised to hear that real estate enjoys the lowest average Cost Per Click (CPC) on Google Ads, coming in at just $1.40. This suggests that the real estate sector has a significant edge in attracting potential customers without spending a lot.

For businesses in this industry, this low CPC is a great opportunity–it means reaching out to prospective clients is relatively cost-effective.

An overwhelming 96% of advertisers are putting their money into search ads. It’s clear that businesses see the value in this. With such a high rate of investment, failing to jump on the search ad trend could leave you lagging behind competitors.

Now, when people are seriously considering a purchase or are close to making a decision, 65% of those high-intent searches lead to clicking on an ad. This tells you how crucial it is to target your ads effectively. When someone is almost ready to pull the trigger on a purchase, you want your ad to be the one they click.

And consider this: Ads appearing in search results are not to be underestimated—they amount to around 45% of all page clicks. Clearly, securing a spot on the search results page can make a world of difference in attracting eyeballs and clicks to your website.

Ads appearing in search results are not to be underestimated—they garner 45% of all page clicks. Clearly, securing a spot on the search results page can make a world of difference in attracting eyeballs and clicks to your website.

Looking ahead, a staggering 97% of total digital display ad spending in 2026 is expected to go toward programmatic advertising. The number pretty much says it all: programmatic is the future.

Finally, display advertising accounts for 16% of advertisers’ budgets. While it might not seem like a large slice compared to search marketing, it’s still a significant chunk. Display ads allow for creative visual storytelling, and the investment shows that it’s a method businesses don’t want to overlook.

Sources: WordStream, Tech Jury, WebFX, Emarketer, Statista, SearchEngineJournal

Online Advertising Market Share & Ads Market Share 2023-2024

One thing’s for sure, marketers are putting their money where their clicks are. Specifically, 80% of them are investing in a mix of search, social, display, and remarketing ads. What does this mean for you? If you’re not embracing these channels, you’re potentially missing out on a broad spectrum of your target audience.

Now, let’s talk about Google Ads. Their Display Network is the real deal in the intent advertising industry. reaching a staggering 90% of internet users across 2 million websites. In simpler terms, it’s a one-stop-shop to get your brand seen by almost everyone online. If your ad isn’t in Google’s network, you’re practically not utilizing the reach.

Switching gears to mobile, 95% of paid search ad clicks come from Google. Think about that. Almost every time someone clicks on a paid ad on their phone, it’s likely running on Google’s platform. So if mobile users are your target, it’s almost a no-brainer to go Google.

And don’t forget about display ads, which account for 16% of advertisers’ budgets. While it may not sound like a massive percentage, keep in mind that display ads still make a significant impact. They play an essential role in brand awareness and also help in retargeting efforts.

Finally, let’s talk about the industry leaders. Google takes up 37.2% of total U.S. digital ad spend, while Facebook follows at 22.1%. 

Sources: Social Media Today, SmallBizGenius, WebFX, Search Engine Journal, CNBC

Ad Spend Data 2023-2024

By 2023, the largest chunk of advertising money—$326.20 billion—will go to TV & Video Advertising. It’s crucial to recognize that even in the age of social media and digital ads, TV and video aren’t going anywhere.

This type of advertising still holds considerable sway, particularly for broad audiences. So if you’re a business looking to make a broad impact, your dollars in this market are far from wasted.

When it comes to global ad spend, the United States leads the pack with a whopping $365.40 billion expected in 2023. The sheer size of the U.S. market is a magnet for businesses worldwide.

This figure reiterates the significance of focusing advertising strategies to cater to American consumers if global reach is a part of your business model.

By 2027, a staggering 80% of all ad spending will be digital. The move toward digital is a significant shift that’s shaping the way businesses operate. If you’re late to the digital game, it’s high time to jump in.

In 2023, each person is projected to contribute $42.40 to the TV & Video Advertising market. While this number may seem small on its own, when multiplied by millions of viewers, it becomes a sizable pool. This highlights the continued relevance of this medium in capturing wide-ranging audiences.

Sources: Statista

Conclusion

So there you go–key digital ad spend statistics. In a nutshell, digital ads spend is set to reach $601.8 billion in 2023 alone. 

Mobile continues to be a major player, and programmatic buying is making ad spending more efficient. Major platforms like Google and Facebook are still the go-to places for big advertising budgets.

By 2027, 80% of all ad spending will be digital, signaling a need for every business to have a strong online strategy. 

If you’re in advertising, don’t overlook this shift. The market is on track to pass $1 trillion by the early 2030s.