2024 Marketing Expenditure Reached $551.4B, Representing 11% Growth
US online media spending surged by 14.2% in 2024, reaching $360.9 billion and accounting for 65.4% of total advertising spend, according to a report from Winterberry Group. This growth outpaced the previous year’s rate of 11.3% and was close to industry forecasts. As digital continues to dominate marketing investments, online spending is projected to rise by another 12.3% in 2025, increasing its share of total ad spend to 69.2%.
Search remains the largest online media category, growing 14.5% to $123.6 billion, while social media saw the fastest expansion, increasing by 19.6% to $82.7 billion. Digital video and connected TV (CTV) are also experiencing significant growth, with digital video rising 17% to $30.5 billion and CTV expanding by 19% to $28.8 billion. The forecast suggests that digital video will maintain the fastest growth rate in 2025 at 16.7%, while CTV will grow by 15.8%, solidifying their roles in the evolving ad landscape.
Other digital channels, including influencer marketing (+16%), digital out-of-home (+9.9%), and digital audio (+6.1%), continue to attract investments. However, mobile gaming advertising saw the slowest growth at just 1.1%. While engagement marketing (email and SMS) grew modestly at 3.7%, digital out-of-home (DOOH) and influencer marketing are expected to remain strong contributors in the coming years.
With digital commanding an ever-larger share of total marketing spend, brands must refine their digital strategies, balancing high-performing channels like search and social with emerging opportunities in video, CTV, and digital out-of-home advertising. Understanding shifting consumer behavior and optimizing ad placements across multiple formats will be crucial for maximizing ROI.
Key Actionable Takeaways:
Prioritize Search and Social Media – With search ($123.6B) and social ($82.7B) dominating digital ad spend, ensure strong paid strategies in these high-performing channels.
Expand Investment in Digital Video and CTV – With digital video (+17%) and CTV (+19%) seeing rapid growth, increase spending on video-based platforms to capture audience attention.
Optimize for Cross-Channel Engagement – Balance ad investments across search, social, and video to maintain reach and engagement in a fragmented digital landscape.
Leverage Influencer Marketing Growth – As influencer marketing expands (+16%), collaborate with content creators to drive brand credibility and engagement.
Tap Into the Digital Out-of-Home (DOOH) Boom – With DOOH growing by 9.9%, incorporate digital outdoor advertising into omnichannel campaigns.
Stay Ahead in Emerging Streaming Ad Trends – CTV and digital video are becoming more competitive—invest in premium content placements to maximize impact.
Monitor Mobile Gaming Ad Potential – While currently slow-growing (+1.1%), mobile gaming remains a valuable niche for brands targeting younger audiences.
Enhance Audience Targeting in Digital Audio – With digital audio ad spend expected to hit $9B, invest in podcast sponsorships and streaming audio ads.
Balance Growth and ROI in Paid Media – As digital ad spend rises, closely track performance metrics to allocate budgets effectively and optimize for ROI.
Adapt to Changing Consumer Preferences – As digital dominates marketing spend (69.2% by 2025), stay agile by testing new platforms, ad formats, and audience strategies.
