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DIGITAL WILL ACCOUNT FOR 71.8% OF US MEDIA AD SPEND THIS YEAR, UP 16 PERCENTAGE
POINTS FROM 2019—AND GROWING




Article by Sara Lebow  |  Nov 7, 2022

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Topics
Digital Ad Spending
Display Advertising
Social Media Ad Spending
United States




Following a turbulent third quarter in advertising, our updated forecast shows
it’s not all bad news. Digital ad spending will reach $248.72 billion in the US
this year, up 12.5% over 2021, according to our forecast updated at the end of
October. Spend grew by 37.2% last year, but slowed significantly in 2022 as it
normalized from pandemic growth.

Our crystal ball: In 2026, digital ad spending will reach $385.47 billion and
make up 80.9% of total media ad spend.



Here’s how digital ad spend breaks down:

Digital deep dive: Within total media spend, ad dollars are flowing to digital.
In 2019, digital accounted for 55.6% of total US media ad spend. This year, it
will account for 71.8%.

Stable coins: The economy looks nothing like it did last year, but our forecast
for digital ad spend hasn’t changed much. Where spending is going within the
category will shift.

 * For the first time this year, video will make up nearly one-third of digital
   ad spending. Video has taken over for banners as the dominant display ad
   format, driven by connected TV (CTV).
 * CTV’s performance will eat into mobile ad spend, which currently accounts for
   68.4% of digital compared to CTV’s 8.5%. In 2026, mobile’s share will fall to
   66.6% as CTV rises to 11.3%.
 * Search will account for 40.6% of digital ad spend this year, up about 1.5
   percentage points from last year. But search’s stronghold within display will
   weaken over the next two years, and growth will drop from 16.9% this year to
   7.4% next year.
 * Within display, which makes up more than half of digital ad spend, growth
   will falter to 9.9% this year, down from 37.5% in 2021. That hiccup comes
   from social, which is taking an ad spend beating.

Social anxiety: The third quarter was challenging for Big Tech, fueled by a
hurting economy, the continued effects of Apple’s AppTrackingTransparency, and
an overall musk of uncertainty.

ADVERTISEMENT


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to be excited about in 2023. Join eMarketer’s Analyst Webinar, made possible by
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 * Meta continues to account for the most US display ad dollars of any company,
   but its share will drop from 39.4% in 2021 to 30.4% in 2024, unless its
   metaverse can miraculously jump off.
 * Meta’s ad dollars are headed to Amazon, TikTok, and CTV.

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



share via email








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