These are boom times for digital advertising. While the pandemic battered the economy, the job market, and consumer confidence, it did little to quash a bonanza in digital ad spending.
US digital ad spending is surging thanks to increased investments in video, connected TV (CTV), and ecommerce ads, as well as growing use of programmatic channels. The health of the digital ad market is also reflected in a pendulum shift toward ad-supported video-on-demand (AVOD) services, despite the continuing strength of subscription-based services.
US digital ad spending will grow by nearly 50% in the next four years. By 2025, the digital ad market will top $300 billion—more than three-quarters of all media spending. Digital has eclipsed all other forms of advertising, and it has also outperformed our expectations several times in the past couple of years.