State of Digital Advertising 2024: US Digital Ad Spend Reached $117 Billion over the Past 12 Months

As the digital economy continues to grow, so does the battle for this audience’s attention. New competitors such as Temu are entering the e-commerce space, and events like the Paris Olympics reached a record-high audience – and generated a new record in ad dollars. With the digital ad market more competitive than ever before, understanding where your competition is advertising, what their creative strategy is, and how they utilize new channels like Retail Media, is crucial to how your company makes strategic marketing decisions.

Sensor Tower’s State of Digital Advertising 2024 report dives deep into the latest trends in digital advertising as the holiday season approaches. In the United States, digital ad spend reached $117 billion covering more than 14 billion total impressions over the 12 months between September 2023 and August 2024. This includes ads across social networks like Facebook and TikTok, desktop, mobile, and OTT. US ad spend and impressions were each up 17% year-over-year, suggesting that US digital advertising is going to fly past the records set last holiday season in Q4 2023.

Digital Ad Spend Achieved Double-Digit Growth in All 11 Included Countries

The US wasn’t the only market where digital advertising continued its strong growth in 2024. Digital ad spend in the United Kingdom had similarly rapid growth, up 16% to more than $17 billion in the 12 months between September 2023 and August 2024 compared to the year prior. Other markets experienced strong growth over this period as well – 13% YoY in Germany, 22% in France, 25% in Australia, and 15% in Brazil to name a few. Note that the included ad channels vary by market.

Breaking down growth by ad channel, social channels have led the way in the first eight months of 2024 with 15% YoY growth. Social channels also take the majority of ad spend in the US, led by Facebook, Instagram, YouTube, and TikTok. OTT ad spend in the US also had healthy growth at 13% YoY between January through August 2024, and ad spend on desktop & mobile display climbed 11%.

US advertising is seasonal with ad spend spiking in October ahead of the holiday season. Spend on social and OTT remains high through December. With increasing competition for consumer attention during the holiday season, look for ad spend to break records again in Q4 2024. The US is not unique in seeing a spike in advertising during the fourth quarter – the European markets, Brazil, and Canada exhibit a similar trend.

Shopping Advertising Accounts for Nearly 26 Cents Out of Every Dollar in US Digital Ad Spend

Shopping remains the biggest piece of digital advertising – led by retailers like Amazon, Temu, SheIn, and Walmart. Consumer Packaged Goods trailed at 13%, and Media & Entertainment ranked third at 11%. More than half of US digital ad spend went to Shopping, Consumer Packaged Goods, or Media & Entertainment. These categories also accounted for at least 50% of ad spend in the remaining included markets with the exception of Australia and New Zealand.

What industries are spending the most on digital advertising in the US? Apparel was the top subcategory by digital ad spend. Other top subcategories included Food & Beverages, Film & Television,  Home & Garden Shopping, Personal Care, and Dining & Restaurants.

Want More Insights on the Digital Advertising Ecosystem? Read the Full Report

Read the State of Digital Advertising 2024 report highlighting the advertising leaders across social, desktop, and OTT, spanning 11 countries in a dynamic, interactive format:

• Social Advertising - Social ad spend climbed 15% YoY so far, setting up strong growth for the holiday season

• Top OTT Trends - US OTT ad spend in 2024 through August surpassed $10B, up 13% YoY, outpacing desktop and mobile display, but slightly slower than social channels

• Retail Media - Retail Media impressions reached 21.6B in July, up 27% from 17B just one year earlier

• Key Events in 2024 - See how Olympics’ brand partners increased their OTT spend 43% during the games, shifting money away from YouTube, Facebook, Instagram, and TikTok

• Category Spotlights - Apparel was the top shopping subcategory in the US, with women’s apparel alone accounting for nearly $1.5B. The US is an outlier with general shopping as the top subgenre on all other regions