With more and more people using the internet each year, it’s no surprise that the digital ad market has also been growing. Digital ad spend worldwide is expected to increase over the next few years, and the US is no exception to this.

According to the latest data, US digital ad spending is expected to hit $297.4 billion in 2023. This is a 13.9% increase from 2022, during which expenditure totaled $261.1 billion.

US ad spending on digital channels is forecast to continue rising over the next few years. It is projected to increase to $333.6 billion in 2024, before growing further to $369.4 billion in 2025. In 2026, it’s set to surpass $400 billion and experts predict it will hit $440.3 billion in 2027.

This means that from 2023 to 2027, the digital ad market in the US will have grown at an average annual growth rate of 11%. Impressive as it this, it’s actually a slowdown from the previous years. From 2018 to 2023, the average annual growth rate was more than double—at 22.3%.

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US Digital Ad Spending per Internet User

Digital ad spend per person is expected to amount to $952.80 per internet user in 2023. This marks a 12.2% increase from 2022.

Much like the US digital ad market size, expenditure per user has also been on the rise over the past few years. In 2017, digital ad spend per internet user in the US was $317.50. From 2017 to 2023, this number increased threefold and grew at a rate of 20.2% annually. 

Even though digital ad spending per person is expected to continue rising, its growth rate is set to slow. Between 2023 and 2027, the average annual growth rate is forecast at 9.6%.

US Digital Ad Spending Growth By Industry

Just how much more US businesses are spending on digital ads varies from industry to industry. In 2022, the biggest growth in US digital ad spending came from the retail sector. 

According to market analysts, retail businesses spent 23.5% more on digital ads than they did the previous year. this year. In comparison, the average across all industries was 17.8%. This is followed by the travel and telecom industries, whose expenditures on digital ads in 2022 grew by 22.5% and 20.8%, respectively.

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