U.S. Digital Advertising Industry - Statistics & Facts

U.S. Digital Advertising Industry - Statistics & Facts

Statistics and facts on the Digital Advertising Industry in the U.S.

With the penetration of the internet and increasing popularity of digital platforms, digital advertising has grown to become one of the most important forms of advertising. Digital advertising revenue worldwide is forecast to increase at a fast pace in the coming years. Nearly 170 billion U.S. dollars were spent on digital advertising in 2015. By 2021, this figure is projected to add up to more than 330 billion U.S. dollars.


The United States is the largest digital advertising market in the world, as the country had the highest revenue in the digital advertising market in 2016 – an estimate of 80 billion U.S. dollars. About a quarter of all ad expenditures in the country were devoted to digital advertising. Digital advertising spending in the U.S. is projected to grow in the next few years, as sources expect the total spending on digital advertising to reach nearly 93.5 billion U.S. dollars by 2020. In terms of industries, the retail industry invests the most on digital advertising in the country. As of 2016, this particular industry accounted for 22 percent of all digital advertising spending in the U.S. The automotive and the financial services industry held about 12 percent of the share each.

Search advertising is the most profitable and most promising digital ad format in the U.S., accounting for the majority of the digital advertising revenue generated in the country. Considering search advertising is one of the major revenue streams for digital advertisers, it is no surprise Google, the leading search engine in the world, has by far the highest net digital advertising revenue amongst online companies in the U.S., with healthy growth projections for the future. While Google generated about 80 billion U.S. dollars in revenue through its digital advertising channels, Facebook’s digital revenue stood at 27 billion U.S. dollars. In the United States, Facebook leads the display advertising market though, leaving Google and other competitors behind.

The use of mobile for advertising is also a growing trend in the country, as mobile is forecast to become the main device for digital advertisers by 2017. Full-screen interactive ad formats on smartphones have the highest recall rate in the country already; 58 percent of American internet users remember those ads. When this type of ad was encountered on a desktop device, for instance, only 38 percent of internet users stated remembering the ad. Brand advertising recall rate for full-screen interactive ads displayed on tablet and smartphone is also high in comparison to other formats. Another advantage of using mobile ads is lower ad blocking software use on mobile devices amongst American internet users. Whereas 17.7 percent of internet users in the U.S. use ad blocking software on their laptop or desktop computer, only 9.6 percent used on their mobile devices.



Photo: istockphoto.com / hronos7

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Facts on digital advertising industry in the U.S.
OverviewValuesStatistic
Digital ad spending worldwide in 2017 (forecast)191.85bn USD Details →
Digital ad spending in the U.S. in 201548.58bn USD Details →
Digital ad spending growth in the U.S. in 201517% Details →
Share of digital in total ad spend in the U.S. in 201524.7% Details →
Ad selling and sellersValuesStatistic
Google ad revenue in the U.S. in 2017 (forecast)26.69bn USD Details →
Facebook ad revenue in the U.S. in 2017 (forecast)12.14bn USD Details →
Microsoft ad revenue in the U.S. in 2017 (forecast)3.17bn USD Details →
Amazon ad revenue in the U.S. in 2017 (forecast)0.99bn USD Details →
FormatsValuesStatistic
Banner ad revenue in the U.S. in 2017 (forecast)21.66bn USD Details →
Video ad revenue in the U.S. in 2017 (forecast)11.33bn USD Details →
Search ad revenue in the U.S. in 2017 (forecast)36.1bn USD Details →
Social media ad revenue in the U.S. in 2017 (forecast)20.22bn USD Details →
Classifieds ad revenue in the U.S. in 2017 (forecast) 3.58bn USD Details →
EffectivenessValuesStatistic
Share of U.S. SMEs which believed digital display ads were effective in 201656% Details →
Share of retail SMEs worldwide which believed internet marketing was attracting customers to their business in 201463% Details →
Share of retail SMEs worldwide which believed online marketing was more effective than offline marketing61% Details →
Customer perceptionsValuesStatistic
Most trusted ad type in North America in 2015Recommendations from people I know Details →
Share of U.S. consumers who believed personalized ads were relevant to them42% Details →
Share of connected Millennial consumers in the U.S. who felt there were too many ads on their smartphone in 201648% Details →


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