US Digital Advertising Market Report 2022

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
Senior Director, US Reports