The US continues to lead the global advertising market, with ad spending expected to reach $455.9 billion by 2025. Globally, the largest segment will be TV and Video Advertising, accounting for $353.9 billion. Digital advertising is projected to dominate, contributing 80% of total ad spending by 2029. Additionally, programmatic advertising is forecasted to generate 85% of the advertising market’s revenue by 2029, reflecting its growing importance in shaping industry trends.
Digital advertising's explosive rise means it's hardly surprising that brands are investing more in the space to reach their target audience. This growing dominance within the advertising ecosystem has been mirrored by a continuous decline in traditional forms of advertising such as print and radio.
The growing popularity of influencer marketing is changing advertising in the US. With millions of followers, social media influencers like Kylie Jenner and Selena Gomez drive brands to invest heavily in this strategy. In the US, influencer advertising is expected to reach $6.24 billion by 2025, with a projected annual growth rate of 8.79%, leading to a market volume of $8.74 billion by 2029. This highlights its increasing significance in modern advertising strategies.
Whether you're a US-based marketer or advertiser or not, understanding what's happening within the world's biggest ad market can be key to planning ad campaigns that deliver results.
US Advertising Market Trends
Technological advancements have driven a shift in consumer behavior, forcing the US ads market to evolve rapidly and adopt new practices. Here are some of the most prominent market trends in the US.
1. Digital Advertising
Around a decade ago, digital advertising in the US was a small part of the advertising industry. Now, it's the mainstay.
In fact, the rise of digital advertising is one of the most significant trends in the US ads market. As more people spend time online, businesses are investing heavily in digital ads to reach them. Online ads already account for almost two-thirds of the market share in the American ad industry. At a global level, the digital ad space is expected to witness a 13.9% compound annual growth rate (CAGR) by 2026.
Customers now have more options than ever. Digital publishers, social platforms, search engines, and ad platforms are the major drivers of this segment. Moreover, the evolution in ad technology has made ads more effective and efficient than ever.
2. Data and Analytics
Modern advertisers and publishers are leveraging vast amounts of information to gain valuable insights into consumer behavior and preferences.
Advertisers have been able to create more targeted ad campaigns using programmatic advertising platforms, which use algorithms to automate the buying and selling of ad inventory.
3. Influencer Marketing
The rise of social media has allowed advertisers to target customers in many different ways through influencer marketing.
Influencers play a key role in advertising as businesses increasingly collaborate with them to boost product visibility. By 2025, average ad spending per internet user in the United States is expected to reach $19.26 in the influencer advertising market.
4. Video Content
Another notable trend in the US ad market is the increasing demand for video content. Video has always been a popular format for advertising, allowing brands to convey their messages to consumers in a more engaging and creative way.
Thanks to the growing popularity of video platforms, marketers and advertising agencies have easier access to the production and distribution of videos than ever. Furthermore, the rise of streaming services—such as Netflix and Amazon's Prime Video—has created new opportunities for marketers to advertise to consumers who are increasingly shifting away from traditional TV sources.
5. Sustainability and CSR
As modern consumers increasingly look for brands that align with their values, businesses are becoming more socially responsible in order to gain consumer loyalty. This trend has led to the rise of socially responsible marketing campaigns, where businesses promote a cause or social issue alongside their products and services.
Popular Ad Media in the US
The US is a huge market when it comes to advertising. It’s also one of the most technologically sophisticated markets. Advertisers in the US use different ad media according to their target audience and message.
For example, social media platforms are increasingly seen as a more effective channel to generate leads. However, radio advertising still remains a popular choice among advertisers for local targeting. Here’s a list of popular ad media in the US.
1. Digital Advertising
Digital advertising includes running ads on social media platforms, search engines, websites, and mobile apps. Digital advertising allows companies to reach their target customers more efficiently.
In most cases, advertisers only pay for the clicks or impressions their ads receive. Furthermore, digital advertising also offers impressive targeting, as companies can target specific customers based on demographics, interests, and behaviors.
2. Television Advertising
Although traditional advertising is slowly declining, television still remains one of the most preferred ad platforms in the US. Cable channels allow companies to reach a broad audience with video ads. US advertisers can reach national or local audiences, depending on the campaign and budget.
TV advertising is also a great way to target the right customers. For instance, if a company’s target consumer is young adults, it can advertise its products and services on a channel that airs programs targeting that demographic.
3. Print Advertising
Print advertising continues to be a viable option for businesses aiming to target audiences based on location, age, gender, and interests. In the United States, ad spending in the print advertising market is expected to reach $8.98 billion by 2025, with newspapers accounting for $4.72 billion. Despite a decline in popularity, print ads in magazines and newspapers remain effective for connecting with specific demographics and interests. The U.S. leads global ad spending in this category.
4. Radio Advertising
Radio advertising is still a popular way for companies to reach local consumers in the US, especially during commuting hours. Radio ads can help companies target specific demographics through the stations they choose to advertise on.
For example, if a company is looking to target an older demographic, it can advertise its products and services on a station that plays classic hits.
5. Outdoor Advertising
Technology has helped companies more effectively tailor ads for outdoor displays such as billboards, signs, and other types of public display surfaces.
The U.S. billboard and outdoor advertising market generated $10.23 billion in revenue in 2024 and is projected to grow at a CAGR of 8.4% from 2025 to 2030, reaching $16.55 billion by 2030. Transit advertising emerged as the highest revenue-generating segment in 2024 and is expected to remain the fastest-growing type throughout the forecast period, highlighting its strong potential for advertisers.
Companies can use outdoor ads both to reach a broad audience and to target audiences based on geographic locations.
6. Direct mail advertising
Direct mail remains an effective method of sending commercial messages. US companies still use direct mail to promote their brands and advertise directly to specific consumers. Global ad spending on direct mail is projected to hit $59.31 billion by 2025, with steady annual growth of 0.95% from 2025 to 2029. By 2029, the market is expected to reach a value of $61.59 billion, highlighting its continued relevance as an advertising channel.
7. Sponsorships and Events
The trend of sponsoring events, such as sports games or music festivals, or hosting own events to promote products or services has long been popular among US businesses.
The US is the biggest sports and entertainment market in the world. As the market grows, companies continue to invest more in sponsorships and events. The scope of sponsorship varies according to a brand’s size and its prospects.
Traditional Advertising in the US
Traditional advertising refers to running ads on non-digital channels such as print, radio, and television to reach consumers. While these channels have been hugely popular for decades, they have been ceding market share to the digital platform. However, traditional media still accounts for a significant portion of ad spend as many brands still find it useful.
Recent studies and stats on traditional advertising in the US suggest that while the industry is facing challenges from digital media, it remains a significant and important part of the advertising landscape.
Brands still find traditional channels such as TV, newspapers, billboards, and direct mail effective at driving brand awareness. Moreover, traditional ad media still possesses a high level of trust and credibility among consumers.
Traditional advertising has seen some growth recently, but it's expected to account for less than 20% of total ad spend by 2026.
Here is an overview of different traditional advertising platforms in the US.
- Television advertising continues to lose ground as more advertisers shift to digital platforms. US TV ad spending is projected to drop by 9.3% between 2023 and 2027, with annual expenditures decreasing by $5.6 billion during this period. In 2025, TV ad spending is expected to fall to $57.7 billion, declining further to $54.7 billion by 2027. This marks an average annual reduction of 2.4%, reflecting the ongoing challenges traditional TV faces amid changing viewer preferences.
- Despite the decline, print advertising remains significant, with an estimated 85.7 million readers by 2029. While many marketers have moved to digital platforms, publishers are also adapting to meet the demands of online audiences. The average ad spending per reader in the newspaper advertising sector is expected to reach $103.00 by 2025, highlighting the enduring value of this traditional medium despite shifts in consumer behavior.
- Radio advertising revenue in the U.S. reached $13.8 billion in 2024, showing slight resilience despite a minor decline from 2023. Globally, the market is projected to ease from $28.6 billion in 2024 to $27.95 billion by 2029. Radio continues to attract listeners with over 226 million American listeners expected by 2029, offering advertisers valuable opportunities to engage commuters and audiences. The demand for digital audio advertising also grows, reinforcing radio’s role as a relevant and effective medium in modern marketing strategies.
- Outdoor and billboard advertising in the U.S. continues to grow steadily, generating $10.2 billion in revenue in 2024. Transit advertising led revenue generation in 2024 and is anticipated to remain the fastest-growing segment in the coming years, reflecting its increasing appeal to advertisers seeking impactful and wide-reaching campaigns.
In 2025, BIA forecasts that traditional media is expected to account for 48% of the total local ad spend, totaling $82 billion. This marks a shift as digital media surpasses traditional platforms for the first time, but traditional media still holds a significant portion of the overall advertising market.
Digital Advertising Market in the US
The digital ads market in the US has exploded recently, with companies allocating a significant portion of their ad budgets to digital channels. And as there's a significant increase in the use of technology and the internet, digital marketing is now essential for businesses of all sizes.
Digital advertising dominates the US market, accounting for more than three-quarters of total ad spending. This shows its growing importance as businesses increasingly invest in online platforms to reach their audiences.
A key factor in media consumption growth is the rising use of digital platforms. By 2025, U.S. consumers are expected to spend nearly eight hours daily on digital media. The COVID-19 pandemic further accelerated this trend, driving higher engagement with streaming services and e-books.
The increasing use of mobile devices is another factor contributing to the sector's growth. The US mobile advertising market is expected to exceed $200 billion in 2024, reaching $202.59 billion, marking a 14.4% growth from the previous year. This growth is driven by the rise in smartphone users, with 90% of Americans owning a smartphone. Search advertising leads with $81.5 billion, followed by video and banner ads. The market is projected to expand by $83.1 billion from 2021 to 2025, growing by 57.3%, with an annual growth rate of 12%.
Social media platforms have also played an important role in attracting businesses to digital advertising. In 2025, ad spending in the US Social Media Advertising market is expected to reach $95.70 billion, with a projected annual growth rate of 9.74% from 2025 to 2029. By 2029, the market volume is forecasted to hit $138.80 billion. Mobile ads will dominate, accounting for 86% of the total ad spending. The number of social media users in the US is also expected to reach 326.7 million by 2029.
Digital Advertising Market Drivers in the US
There are several key market drivers of the digital ads market in the US. Here's a list of the most significant drivers:
1. Social Media
Social media is a key part of daily life for many, with 72% of US adults using at least one platform. The US has 302 million social media users in 2024, expected to reach 327 million by 2027. Facebook remains the most popular, with 74.2% of adults using it, followed by YouTube and Instagram. Social media users in the US manage an average of 7 accounts, showing strong engagement across various platforms.
In 2023, social media ad spending in the U.S. reached $72.3 billion, with projections to exceed $80 billion by 2026. Facebook remains the dominant platform for social commerce, with 67.8 million buyers in 2024. Global ad revenue from Facebook is expected to surpass $127 billion by 2027. Despite potential challenges, 67% of U.S. B2C marketers plan to increase TikTok ad spending, highlighting its growing influence in advertising.
2. eCommerce
eCommerce in the United States is set to reach approximately $1.38 trillion in 2025, marking an 8.01% growth compared to the previous year. User penetration is expected to reach 87.9% in 2025 and is projected to rise to 97.1% by 2029. This growth reflects the ongoing shift toward online shopping, driven by consumer demand and digital adoption.
The growth of eCommerce has significantly boosted social commerce, with US consumers projected to spend $80 billion through social commerce by 2025. Social media platforms, especially Instagram, have become key starting points for online shopping, with 15% of US digital buyers initiating their searches there. This shift shows the increasing preference for shopping directly through social media on smartphones.
3. Artificial Intelligence
Artificial intelligence (AI) is playing a crucial role in digital marketing, helping businesses personalize content, optimize ads, and enhance customer experiences. AI market size is expected to reach $66.21 billion by 2025, with U.S. AI spending predicted to hit $336 billion by 2028. Additionally, 36% of marketing executives are using AI-driven customer support, such as chatbots, to engage with customers, which could help businesses save up to $11 billion annually.
4. Increasing Use of Mobile Devices
As more people rely on their mobile devices for online activities, marketers are focusing their efforts on mobile-based ad strategies to reach and engage with their target audience.
The growth in mobile advertising, especially in-app advertising, is primarily attributed to the increasing number of mobile users along with the rise of mobile-based social platforms, such as Instagram and TikTok, which have become popular channels for digital marketing.
Mobile usage has also influenced the way marketers approach their digital marketing strategies. Mobile devices have smaller screens compared to desktops, meaning marketers need to optimize content for mobile viewing. This has resulted in the rise of mobile-first design, where websites and ads are created with the mobile user experience in mind.
The prevalence of mobile devices has also made it easier for marketers to track user behavior and target their ads based on statistics. This allows for more personalized and targeted advertisements, which can result in higher conversion rates and better ROI for marketers.
The impact of mobile usage on digital marketing can also be seen in the rise of mobile-based technologies, such as augmented reality (AR) and virtual reality (VR). These technologies allow marketers and advertising agencies to create immersive experiences for users, such as trying on clothes virtually or experiencing a product in a virtual environment.
5. Programmatic Advertising
Programmatic advertising refers to an automated system of buying and selling ad inventory through ad tech platforms. It uses statistics and algorithms to buy and sell ad units in real-time, allowing brands to target their audience more precisely, effectively and with greater efficiency. Programmatic advertising has also been shown to improve ad performance and drive higher engagement rates.
6. Data-driven Advertising
Another market driver is the increasing use of data-driven advertising. Data-driven advertising involves the use of statistics and analytics to plan informed advertising strategies and improve targeting.
With the growing availability of statistics on consumer behavior and preferences, advertisers are able to create more personalized and relevant ads that resonate with their target audience.
Digital Ad Market Trends in the US
The digital advertising landscape in the US is constantly evolving, with new trends emerging each year. Here are some key trends that are shaping the digital ad spend market in the US:
- Mobile advertising in the U.S. is set to see significant growth, with projections indicating a market value of $142.68 billion by 2032. This growth is driven by the increasing use of mobile devices and advancements in location-based technologies..
- Digital video consumption is also on the rise, with U.S. consumers expected to spend an average of 3 hours and 50 minutes daily on digital video. TikTok's share of video ad spend is rapidly growing, with U.S. marketers projected to allocate $5.48 billion to TikTok in 2025, compared to $6.99 billion for YouTube.
- Native programmatic display ads are also gaining traction, with spending expected to reach $116.76 billion by 2025.
- As digital marketing evolves, emerging technologies like AI, voice search, and augmented reality are set to lead the way, while issues like data privacy and sustainability will play a larger role in shaping customer interactions. Brands that successfully combine innovation with authenticity will be the ones creating the most impactful and personalized consumer experiences.
Digital Ad Market Challenges in the US
Between shifting consumer behaviors and technological advancements, ads are becoming more accurate and efficient. As a result, businesses of all sizes are benefiting from their advertising efforts like never before.
With that said, there remain several challenges for the digital ads market. Here are some of teh biggest.
1. Privacy and Data Security
The increasing concern over privacy and data security is one of the biggest challenges for the digital and internet ad market in the US.
As consumers become more aware of how their personal information is being collected, they have demanded greater control over how it is used. This concern has led to the introduction of new regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
To address these challenges, advertisers should focus on creating less intrusive ads that respect users' privacy. More marketers are planning to increase their investment in personalized marketing in 2023. This trend is expected to continue as advertisers seek to improve efficiency and target their ads more effectively.
2. Ad-Blocking
The digital ad market in the US is faced with the growing use of ad-blocking software by internet users. As of 2022, 34% of American internet users use ad-blocking software, which allows users to block ads from appearing on websites and massively reduces the effectiveness of digital ad campaigns.
The increasing use of ad-blocking software has led advertisers to incorporate contextual advertising in their ad campaigns. Furthermore, advertisers are also adopting AI and machine learning to better target their ads and measure their effectiveness.
3. Increasing Competition
The digital ad market in the US is highly competitive as more companies enter the market and offer new advertising solutions. While Google and Facebook continue to dominate the digital ad market in the, new platforms—such as Amazon, TikTok, and Twitter—are also gaining ground.
There is growing collaboration between advertisers, publishers, and technology providers to develop new standards and best practices for digital advertising. The Interactive Advertising Bureau (IAB) has developed several initiatives, such as the IAB Tech Lab and the IAB Data Center of Excellence, to help address some of the digital advertising industry’s challenges.
4. Brand Safety
The rise of misinformation on the internet and social media platforms poses a great challenge for US advertisers. Brands are increasingly concerned about the association of their ads with controversial or inappropriate content, which can damage their reputation and brand image. According to a survey conducted by Kantar, 69% of advertisers in the US are concerned about brand safety while running digital campaigns.
Digital Ad Market Scope in the US
The digital ad market in the US has seen remarkable growth as more businesses shift their advertising budgets to digital channels. The growth of digital advertising can be attributed to several factors, such as the rise of mobile devices, social media, and the increasing use of programmatic advertising.
Traditional advertising channels, such as television and print, are no longer as effective as they once were, as consumers increasingly turn to digital channels for news, entertainment, and communication. Businesses are recognizing this shift and allocating more of their ad budgets to digital channels, which allow them to reach their target audiences more effectively, with greater precision, and at a lower cost.
The rise of mobile devices also plays a significant role in the growth of digital advertising. With more and more consumers using their smartphones to access the internet, mobile advertising has become an essential component of digital advertising. Mobile advertising allows businesses to reach consumers at any time wherever they are and deliver highly targeted ads based on a range of information, including location, search history, and user behavior.
Social media advertising is another essential component of digital advertising, with platforms such as Facebook, Instagram, and Twitter offering businesses the ability to accurately target specific audiences with their advertisements. Advertising on social platforms has proven effective for businesses looking to reach younger audiences, who are increasingly turning away from traditional channels. Social media advertising also offers businesses the ability to leverage user-generated content and deliver highly targeted ads based on available information.
As technology continues to evolve, it is likely that digital advertising in the US will become even more important for businesses looking to promote their products or services. Advances in AI, machine learning, and data analytics are expected to drive further innovation in the digital advertising industry, enabling businesses to deliver even more targeted and personalized ads to their audiences. Businesses that are able to effectively leverage digital channels are likely to see significant success in the coming years.
Final Thoughts
The US advertising industry is massive. With technological advancements, there has been a significant shift in the way businesses reach their target audiences. The US market's projected growth means it is undoubtedly a great place for future advertisements.
That being said, traditional marketing is still an important part of the US ad industry and there are some niches—such as local markets and older demographics—that can be targeted better with traditional advertising. If you're looking to make the most out of your advertising campaigns, you can mix the best of both worlds for great results.
However, incorporating digital advertising and staying up to date on new technology is extremely important for new advertisers and even publishers. You may want to take advantage of mobile-based advertising, invest in digital tools, and boost your social media activities for future-proof advertising campaigns.
Publift helps publishers and developers get the most out of the ads on their mobile apps or websites. It has been helping publishers increase revenue by up to 55% since 2015 by helping them to sell digital ad inventories to premium advertisers.
If you're making more than $2,000 in monthly ad revenue, contact us today to learn more about how Publift can help increase your ad revenue and best optimize the ad space available on your website or app.
Frequently Asked Questions
What Is the Size of the Digital Ad Market in the US?
Digital ad spending in the US is expected to exceed $325 billion in 2025, with an 8-10% growth rate. The retail sector remains the top spender, forecasting $88.13 billion. Consumer packaged goods follow with $48.79 billion, while financial services are projected to spend $33.81 billion. These industries are driving the growth of digital advertising in the US.
Who Are the Major Digital Advertising Market Vendors in the US?
Google, Meta, and Amazon lead the global digital advertising market in 2024. In the United States, digital advertising makes up around 80% of all ad spending. Google is expected to generate $190.5 billion, Meta $146.3 billion, and Amazon $52.7 billion in online advertising revenue globally in 2024. As new platforms like TikTok rise in popularity, particularly among younger users, the dominance of these major players may gradually shift.
What Is the Future of Advertising in the US?
The U.S. advertising market is projected to reach US$455.90 billion by 2025, with search advertising leading at US$154.80 billion. The focus is shifting toward personalized and targeted digital campaigns, aiming to optimize ROI and effectively engage specific audiences. Despite some potential long-term economic challenges, the outlook for the industry remains strong.