J. G. Navarro
Research expert covering advertising and marketing with a focus on South America
Advertising in the United States – statistics & facts
The powerful digital advertising industry of the United States has expanded putting the pedal to the metal – but recently, that was the brake pedal. For several consecutive years, online ad spending in the U.S. has recorded double-digit growth rates, until a comparatively modest 7.3-percent rise marked 2023. That year, cinema – still recovering after the pandemic – and business-to-business (B2B) channels ad revenues increased by 9.9 and 11.7 percent, respectively. Those figures indicate that the internet continues to evolve and dominate the world's largest ad market. However, they also suggest that the U.S. mediascape remains complex and multifaceted.
That comes down to each medium's capacity to reach a significant number of consumers, preferably with attractions and advertisers appealing to them. Nearly half of Americans surveyed as of late 2023 reported watching TV commercials, the highest share among traditional and digital media alike. But while televised content loses relevance thanks to online video platforms, outdoor displays and radio tied for second among offline channels, each mentioned by one-third of respondents. Among the U.S. top digital ad touchpoints, social media reigns supreme, with a reach increasingly comparable to TV's. Video portals like YouTube and streaming services like Netflix tied for second among online media. Such stellar shares suggest that online ad spending deceleration is more of a glitch rather than the blue screen of death: U.S. digital ad spend is forecast to resume rising at double-digit growth rates as the decade unfolds.
U.S. media race for reach and ad dollars
The TV ad expenditure barely grew in 2023, mostly boosted by in-stream ad revenues. When looking exclusively at linear TV ad spending in the U.S., projections indicate a decline, with annual values reaching their lowest point in over a decade by 2025. However, an even more traditional medium will likely continue to attract advertisers: Radio ad revenues are forecast to experience modest growth throughout the 2020s. Meanwhile, the out-of-home (OOH) ad expenditure peaked in 2023, finally surpassing 2019 heights. Why do some offline ad channels dim while others survive or even thrive despite the internet's hegemony?That comes down to each medium's capacity to reach a significant number of consumers, preferably with attractions and advertisers appealing to them. Nearly half of Americans surveyed as of late 2023 reported watching TV commercials, the highest share among traditional and digital media alike. But while televised content loses relevance thanks to online video platforms, outdoor displays and radio tied for second among offline channels, each mentioned by one-third of respondents. Among the U.S. top digital ad touchpoints, social media reigns supreme, with a reach increasingly comparable to TV's. Video portals like YouTube and streaming services like Netflix tied for second among online media. Such stellar shares suggest that online ad spending deceleration is more of a glitch rather than the blue screen of death: U.S. digital ad spend is forecast to resume rising at double-digit growth rates as the decade unfolds.
