2022
9
US Digital Advertising Market Report 2022
2022-09-25T04:09:37+01:00
OX1100997
3695
155920
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Report
en_GB
“As consumers spend more time online, digital advertising has achieved consistently strong growth – decelerating only briefly due to COVID-19. It continues to succeed despite regulatory pressures and consumer frustration…

US Digital Advertising Market Report 2022

£ 3,695 (Excl.Tax)

Description

This report provides comprehensive and current information and analysis of the digital advertising market including digital advertising market size, anticipated market forecast, relevant market segmentation, and industry trends for the digital advertising market in the US.

Current market landscape

As consumers spend more and more time online, digital advertising has become an essential channel for brands to connect with them. 90% of US consumers report seeing some type of online ad over the past week, and growth forecasts remain robust for this $234.4 billion industry despite economic headwinds. Digital advertising achieved 12% growth during 2020, the first year of the pandemic, and has continued at that pace despite factors like inflation and the conflict in Ukraine. Meanwhile, increased competition among digital media companies is causing companies such as Netflix to adopt advertising models, adding further opportunities for growth.

Market share and key industry trends

  • Growth to continue despite an uncertain market. Digital advertising has been growing at a healthy rate for several years. After a slight speed bump in the first half of 2020, all segments experienced strong growth in both 2021 and 2022. Even formats like display, which seemed to have peaked, showed an increase, while digital video nearly doubled in size in just two years – fueled by consumers’ eager embrace of online entertainment.
  • Consumers have concerns – but digital ads work. 74% of consumers are actively trying to avoid digital ads today vs 66% in 2020, and more than half react negatively to forced interactions with ads and privacy risks. However, 25% of consumers have considered making purchases due to these ads, and 20% have actually done so.
  • Strategic thinking is a must. In today’s cluttered ad environment, no one tactic or channel will guarantee a connection with consumers. Instead, marketers need to create multi-touch, cross-media campaigns across the entire purchase cycle. Metrics and data can help shape these plans, but commonsense thinking and emphasis on the customer experience will be essential to avoid alienating consumers.

Future market trends in digital advertising

Of course the digital advertising sector also faces consumer pushback. Close to three quarters of consumers have used tactics to avoid ads, and more than half dislike being asked for personal information or being forced to watch or interact with ads. It also hardly seems possible that consumers could spend more time with digital media than they already do, creating potential limits on revenue expansion. In order to continue to grow, advertisers and digital publishers will need to thread a tricky needle – delivering advertising without turning customers off and jeopardizing ad effectiveness.

Read on to discover more about the digital advertising consumer market, read our Online Apparel Retailing – US – 2022, or take a look at our other Retail research reports.

Quickly understand digital advertising intelligence

  • Market size and segmentation of the US digital advertising sector, along with growth forecasts through 2027.
  • Key players in the digital advertising landscape, along with an analysis of their most effective strategies.
  • In-depth findings on consumer attitudes and behavior regarding digital advertising.
  • Opportunities for future success for digital advertisers and publishers.

Covered in this digital advertising market report

Brands include: Amazon, Walmart, Lowe’s, Kroger, Target, Facebook, YouTube, Instagram, Snapchat, TikTok, Meta, Bytedance, Alibaba, Colgate-Palmolive, Disney+, Samsung, LG, Roku, Vizio, HBO Max, Hulu, Peacock, Paramount+, Netflix, Amazon Prime Video, Apple TV+, Showtime, STARZ, Wendy’s, PayPal, Gucci, Roblox.

Expert analysis from a specialist in the digital marketing and advertising field

This report, written by Fiona O’Donnell, a leading analyst in the Leisure and Entertainment sector, delivers in-depth commentary and analysis on digital advertising market research to highlight current trends and add expert context to the numbers.

As consumers spend more time online, digital advertising has achieved consistently strong growth – decelerating only briefly due to COVID-19. It continues to succeed despite regulatory pressures and consumer frustration with invasive and irrelevant ads that can lead to use of ad blockers. That’s in part because it works. Digital advertising is currently the most cost-efficient way to connect with consumers, and when used properly it can drive engagement without leading to frustration.

Fiona O’Donnell, Sr. Director – Leisure and Entertainment
Fiona O’Donnell
Senior Director, US Reports

Table of Contents

  1. Overview

    • What you need to know
      • This Report looks at the following areas
        • Definition
          • Market context
          • Executive Summary

              • Top takeaways
                • Digital advertising expected to nearly double in the years ahead
                  • Figure 1: Total US digital advertising revenues and fanchart forecast, at current prices, 2017-27
                • A potentially bumpy path to success
                  • Figure 2: Digital advertising outlook, 2022-27
                • Opportunities and challenges
                  • A highly consolidated market
                    • Figure 3: Top five global digital advertising platforms, 2020 and 2021
                  • Failing to deliver the experience consumers deserve?
                    • Figure 4: Online ad reactions, 2022 vs 2020
                  • Strong potential for retail media
                    • Figure 5: Trust in ads from familiar companies, by gender and age, 2022
                  • Success requires multiple touch points across multiple channels
                    • Figure 6: Online ads that influenced a purchase in the last three months, 2021-22
                  • Key consumer insights
                  • Market Size and Forecast

                      • Digital advertising growth defies COVID-19 shock
                        • Figure 7: Total US digital advertising revenues and fanchart forecast, at current prices, 2017-27
                        • Figure 8: Total US digital advertising revenues and forecast, at current prices, 2017-27
                    • Segment Performance

                      • COVID-19 drives renewed growth for desktop
                          • Figure 9: US digital ad revenue, by desktop and mobile, 2013-21
                        • Which formats will have the most staying power?
                          • Figure 10: Breakout of US digital ad spend, by segment, at current prices, 2018-22 (est)
                        • Paid search retains its dominant share
                          • Figure 11: Paid search advertising revenues and fanchart forecast, at current prices, 2017-27
                          • Figure 12: Paid search advertising revenues and forecast, at current prices, 2017-27
                        • Display advertising holds its ground
                          • Figure 13: Display advertising revenues and fanchart forecast, at current prices, 2017-27
                          • Figure 14: Display advertising revenues and forecast, at current prices, 2017-27
                        • Digital video goes from one success to the next
                          • Figure 15: Digital video advertising revenues and fanchart forecast, at current prices, 2017-27
                          • Figure 16: Digital video advertising revenues and forecast, at current prices, 2017-27
                        • Outlook evolving for other formats
                          • Figure 17: Other digital advertising revenues and fanchart forecast, at current prices, 2017-27
                          • Figure 18: Other digital video advertising revenues and forecast, at current prices, 2017-27
                      • Market Perspective

                        • Social a critical channel for reaching younger consumers
                          • Figure 19: Social media sites visited daily, 2016-22
                          • Figure 20: Social media sites visited daily, by age, 2022
                        • YouTube, TikTok users particularly open to online ads
                          • Figure 21: Digital ad reactions, by social media site daily usage, 2022
                          • Figure 22: Attitudes regarding digital advertising, by social media site daily usage, 2022
                      • Market Factors

                        • Opportunities to grow by taking share from traditional media
                          • Figure 23: Digital and traditional media usage, by age, 2021
                        • Mobility to get an added boost from 5G?
                          • Figure 24: Interest in 5G networks and 5G smartphones, 2020 vs 2022
                        • Big tech players under scrutiny
                          • Inflation unlikely to make a major dent
                          • Market Share and Key Players

                            • A battle among giants
                              • Figure 25: Top five global digital advertising platforms, 2020 and 2021
                            • Advertising is now…what’s in store?
                              • Ads are in the stream
                                  • Figure 26: Streaming video services used, 2021
                              • Competitive Strategies and Market Opportunities

                                • Push for privacy leads to fallout
                                  • Digital ad formats continue to evolve
                                      • Figure 27: Peacock Frame ad, 2022
                                    • Next stop, the metaverse?
                                      • Figure 28: Metaverse awareness and knowledge, by gender and age, 2022
                                  • Consumers and Digital Advertising – Fast Facts

                                    • Broad exposure and growing awareness for digital ads
                                      • Mobile the main digital ad channel
                                        • Mixed impact for digital ads
                                          • Ad avoidance on the rise
                                            • Trust is low
                                              • Intrusiveness a potential issue
                                                • Simple strategies can help build consumer appeal
                                                  • Three key segments for digital advertising
                                                  • Online Ad Recall

                                                    • Digital ad awareness improving
                                                      • Figure 29: Online ad recall from the past seven days, 2022 vs 2020
                                                    • Multimedia most effective with young adults; seniors prefer email
                                                      • Figure 30: Online ad recall from the past seven days – Streaming, social media, apps, by age, 2022
                                                      • Figure 31: Online ad recall from the past seven days – Email, web browsing, by age, 2022
                                                    • High levels of recall by parents
                                                      • Figure 32: Online ad recall from the past seven days, by parental status, 2022
                                                      • Figure 33: Online ad recall from the past seven days – Social media, by parental status and gender, 2022
                                                  • Online Ad Recall by Device

                                                    • Mobile prevails over PCs
                                                      • Figure 34: Online ad recall (NET) from the past seven days, by device, 2022
                                                      • Figure 35: Online ad recall (NET) from the past seven days, by device and household income, 2022
                                                    • Mobile’s edge strongest for apps, social and audio
                                                      • Figure 36: Online ad recall from the past seven days, by category and device, 2022
                                                      • Figure 37: Online ad recall on any mobile device from the past seven days, by gender and age, 2022
                                                  • Online Ad Reactions

                                                    • Ad responsiveness declines slightly post-COVID-19
                                                      • Figure 38: Online ad reactions, 2022 vs 2020
                                                    • Social advertising particularly effective in driving purchases
                                                      • Figure 39: Online ads that influenced a purchase in the last three months, 2021-22
                                                    • Seniors least responsive to digital ads
                                                      • Figure 40: Online ad reactions – Exposure and purchase considerations, 2022
                                                    • Digital ads more annoying than radio, print
                                                      • Figure 41: Advertising opinions – Repetitive, inconvenient, similar, by medium, 2021-22
                                                    • Digital, TV ads are good sources of information
                                                      • Figure 42: Advertising opinions – Provides useful information, by medium, 2021-22
                                                  • Online Ad Avoidance Methods

                                                    • More consumers seek to block ads
                                                      • Figure 43: Online ad avoidance methods, 2022 vs 2020
                                                    • Younger consumers most likely to avoid ads
                                                      • Figure 44: Online ad avoidance methods, by age, 2022
                                                    • Fathers particularly likely to block ads
                                                      • Figure 45: Online ad avoidance methods, by gender and parental status, 2022
                                                    • Asians most diligent ad blockers
                                                      • Figure 46: Online ad avoidance methods, by race and Hispanic origin, 2022
                                                  • Online Ad Trustworthiness

                                                    • Few consumers trust online ads
                                                      • Figure 47: Online ad trustworthiness, 2022
                                                    • Younger consumers have higher levels of trust in digital
                                                      • Figure 48: Online ad trustworthiness, by age, 2022
                                                    • Higher levels of trust among consumers who use the media type
                                                      • Figure 49: Online ad trustworthiness, by recall of ad type, 2022
                                                    • Social, mobile ads rank low in credibility
                                                      • Figure 50: Advertising opinions – No credibility, by medium, 2021-22
                                                  • Online Ad Intrusiveness

                                                    • Majority of consumers have concerns
                                                      • Figure 51: Online advertising intrusiveness, 2022
                                                      • Figure 52: Attitudes toward online advertising – Intrusiveness, 2022
                                                    • Older consumers more sensitive to disruptive ads
                                                      • Figure 53: Online advertising intrusiveness, by age, 2022
                                                    • Higher-income consumers more worried about intrusiveness
                                                      • Figure 54: Online advertising intrusiveness, by age and household income, 2022
                                                    • Hispanics more open to seeing ads
                                                      • Figure 55: Online advertising intrusiveness, by race/Hispanic origin and household income, 2022
                                                  • Advertising Preferences

                                                    • Only a third prefer digital to traditional ads
                                                      • Figure 56: Advertising preferences, 2022
                                                    • Younger, affluent consumers more likely to prefer digital
                                                      • Figure 57: Advertising preferences, by age and household income, 2022
                                                    • Consumers do find new products through ads
                                                      • Figure 58: Attitudes toward advertising influence, 2022
                                                    • Parents more interested in local events, social responsibility
                                                      • Figure 59: Attitudes toward advertising influence, by gender and parental status, 2022
                                                  • Consumer Segmentation – Attitudes toward Digital Advertising

                                                    • Three consumer segments identified
                                                        • Figure 60: Consumer segments of attitudes toward digital advertising, 2022
                                                      • Pragmatists have strongest ad recall
                                                          • Figure 61: Online ad recall from the past seven days, by digital ad segments, 2022
                                                        • Advocates (35%)
                                                            • Figure 62: Profile of Digital Advertising Advocates, 2022
                                                          • Opportunities
                                                            • Figure 63: Online ad reactions, by digital ad segments, 2022
                                                          • Pragmatists (36%)
                                                              • Figure 64: Profile of Digital Advertising Pragmatists, 2022
                                                            • Opportunities
                                                              • Figure 65: Online ad trustworthiness, by digital ad segments, 2022
                                                            • Skeptics (29%)
                                                                • Figure 66: Profile of Digital Advertising Skeptics, 2022
                                                              • Opportunities
                                                                  • Figure 67: Online ad avoidance methods, by digital ad segments, 2022
                                                              • Appendix – Data Sources and Abbreviations

                                                                • Data sources
                                                                  • Sales data
                                                                    • Forecast
                                                                      • Consumer survey data
                                                                        • Abbreviations and terms
                                                                          • Abbreviations
                                                                            • Terms
                                                                            • Appendix – The Market

                                                                                • Figure 68: Total US sales and forecast for digital advertising, at inflation-adjusted prices, 2017-27
                                                                                • Figure 69: Total US sales and forecast for digital advertising, by segment, at current prices, 2017-27
                                                                                • Figure 70: Total US sales and forecast for search advertising, at inflation-adjusted prices, 2017-27
                                                                                • Figure 71: Total US sales and forecast for display advertising, at inflation-adjusted prices, 2017-27
                                                                                • Figure 72: Total US sales and forecast for digital video advertising, at inflation-adjusted prices, 2017-27
                                                                                • Figure 73: Total US sales and forecast for other digital advertising, at inflation-adjusted prices, 2017-27

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