Rising digital ad revenue by 14.9% annually, amounting to an impressive $259 billion, forecasted for the year 2024, according to IAB's report.
HOLY MOLY, THAT DIGITAL ADVERTISEMENT INDUSTRY IS ON FIRE! In 2024, the U.S. digital ad scene exploded, raking in a whopping $258.6 billion, a staggering 14.9% increase year-over-year, according to the IAB Internet Advertising Revenue Report: Full Year 2024, conducted by PwC.
Video advertising was the undisputed king, growing a mind-blowing 19.2% to secure $62.1 billion, making up a smidge under a quarter of the digital ad market. Search grew by 15.9% to $102.9 billion, solidifying its dominance, while display bumped up 12.4% to $74.3 billion. Social media, on the other hand, skyrocketed 36.7%, bringing in a cool $88.7 billion. Podcast revenue jumped 26.4% to $2.4 billion, and retail media grew 23% YoY to $53.7 billion.
David Cohen, CEO of IAB, was thrilled. "The U.S. digital ad industry showed some SERIOUS muscle in 2024. Despite the global financial rollercoaster, political drama, and economic turmoil, major events like the election and Olympics gave us a solid boost. Even with all the chaos, there's still growth to be had for the brave and inventive. Now's the time to fortify your business and explore new tech-based solutions while keeping consumer privacy top of mind."
The study noted that digital video continued to shine, now accounting for nearly a quarter of total ad revenue, reflecting viewers' love for video content. Podcast advertising also saw a strong comeback, with over 26% growth compared to 2023, while social media saw renewed confidence among advertisers due to increased investment in user-generated content, creator collaborations, and community-led spaces.
Commerce media, including retail media networks, continued its impressive growth, with revenues rising 23% to $53.7 billion. As brands shift towards privacy-compliant audience targeting, first-party data ecosystems are becoming critical to media budgets. Mid-tier media companies experienced the largest share growth, with market share among the top 11-25 media companies reaching 11%, an increase of 3.1% since 2023. This growth indicates the rising power of emerging digital platforms, as brands start allocating budgets beyond the major players.
Whether you’re a digital advertising newbie or a seasoned pro, stay tuned for IAB's predictions for 2024:
- AI-Driven Advertising: A game-changer, AI can now create, decide, and manage campaigns end-to-end. However, widespread adoption is still experiencing some bumps along the road due to challenges with data readiness, tool fragmentation, and compliance.
- Creator Economy: Brands are now focused on long-term partnerships with creators, aiming for authentic, sustained engagement across platforms. Success hinges on authenticity, audience trust, and a solid long-term strategy.
- Privacy & Regulation: The industry is shifting towards first-party data strategies due to signal loss and new privacy laws. Brands are adopting first-party data, contextual targeting, and consent-based tools to stay compliant and effective.
- Streaming CTV, and Skinny Bundles: As advertisers shift TV budgets to streaming, ad-supported tiers from streaming giants like Netflix, Disney+, and Amazon Prime are expanding inventory while driving down CPMs. Live sports streaming is also picking up steam, while skinny bundles help reduce churn and boost ad-supported revenue.
- Business Model Reinvention: Brands are adopting multi-platform strategies, AI-driven automation, and new monetization models like subscription-based content and shoppable media to remain competitive. Retail media networks offer measurable ROI for advertisers by aligning advertising with consumer purchases.
Want to learn more? Register for the webinar on April 24, at 2pm ET to hear experts from IAB, PwC, and MAGNA discuss the report's findings and trends in greater detail. Click here to access the "IAB Internet Advertising Revenue Report: Full Year 2024."
- The digital ad market witnessed a significant growth of 14.9% in 2024, reaching an astounding $258.6 billion, with video advertising taking the lead, accounting for nearly a quarter of the total revenue.
- The study observed a strong comeback of podcast advertising, experiencing over 26% growth, while social media saw a surge in advertiser confidence due to increased investment in user-generated content.
- Commerce media, including retail media networks, continued its impressive growth, rising 23% to $53.7 billion, as brands started allocating budgets beyond the major players.
- In the realm of technology, AI-driven advertising emerged as a game-changer, able to manage campaigns end-to-end, though widespread adoption is still facing challenges.
- The creator economy is gaining focus, with brands aiming for long-term partnerships for authentic engagement across platforms, while the industry is shifting towards first-party data strategies due to new privacy laws and signal loss.
