With more and more people using the internet each year, it’s no surprise that the digital ad market has also been growing. Digital ad spend worldwide is expected to increase over the next few years, and the US is no exception to this.

According to the latest data, US digital ad spending is expected to hit $191.09 billion in 2021. This is a 25.5 percent increase from 2020, during which expenditure totaled $152.25 billion.

US ad spending on digital channels is forecast to continue rising over the next few years. It is projected to surpass the $200-billion mark in 2022 and reach $278.53 billion by 2024.

This means that from 2019 to 2024, the digital ad market in the US will have grown at an average rate of 16.6 percent annually, essentially more than doubling its worth over this period. 

US digital ad spending this year is expected to see the biggest growth in six years. Though growth is still expected through to 2024, it will come at a slightly slower pace.

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US Digital Ad Market Share

In terms of market share, the digital ad market in the US is expected to make up more than two-thirds (66.9 percent) of the total media ad market. 

Its share has also increased in recent years and is forecast to hit 74.9 percent of overall media ad spending by 2024. In other words, nearly three out of every four dollars spent on media ads in 2024 will be on digital channels.

To understand just how quickly the digital ad market is growing, we only have to look at figures in 2019, during which digital ads made up just 54.7 percent of total media ads.

US Digital Ad Spending Growth By Industry

The biggest growth in US digital ad spending this year is expected to come from the computer and electronics industry. 

According to market analysts’ forecasts, this sector is projected to spend 28.2 percent more on digital ads this year. In comparison, the average across all industries is 21.1 percent.

This is followed by the retail industry, whose expenditure on digital ads in 2021 is expected to be 25.7 percent more than in 2020.

Rounding out the top five are:

  • Telecom: 23.0 percent
  • Automotive: 21.4 percent
  • Entertainment: 20.7 percent

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