NEW YORK—Internet advertising revenues demonstrated strong growth in 2024, increasing 14.9% year-over-year to $258.6 billion, according to the “IAB Internet Advertising Revenue Report: Full Year 2024.”
The study, which showed the strongest gains since 2021, was conducted by PwC.
Digital video advertising was particularly strong, growing 19.2% to $62.1 billion, accounting for 24% of the digital ad market.
Search grew by 15.9% YoY to $102.9 billion giving it 39.8% of the total digital ad market.
Display was up 12.4% YoY to $74.3 billion (28.7% of the total) while social increased 36.7% to $88.7 billion (34.3% of total), podcast revenue was up 26.4% to $2.4 billion (0.9% of the market) and retail media grew by 23% YoY to $53.7 billion (20.8% of the total.)
“The U.S. digital ad industry showed remarkable strength in 2024. Despite the volatility from geopolitical shifts, interest rate changes, and economic uncertainty, major events like the Presidential Election and Olympics provided meaningful tailwinds,” said David Cohen, CEO, IAB. “As we look ahead to this year, there is no doubt that we will see an even more dynamic market driven by geopolitical and economic factors. There is absolutely growth to be had for those that embrace the volatility and innovate. Now is the time to future-proof your business by exploring new solutions that leverage the latest advancements in technology while ensuring that consumer privacy stays at the forefront.”
The study noted that digital video continued to be the fastest-growing format, now accounting for nearly a quarter of total ad revenue, reflecting consumer engagement with video content. Podcast advertising came back to strong growth, with a significant increase compared to 2023, over 26% vs. 5%, respectively. Social media saw renewed confidence amongst advertisers due to increased investment in user-generated content, creator-driven partnerships, and community-led spaces.
Commerce media, including retail media networks, continued its strong growth in 2024, with revenues rising 23% to $53.7 billion, as the critical importance of first-party data ecosystems positions it as a key pillar in media budgets as brands shift towards privacy-compliant audience targeting, the researchers said.
While the entire digital ecosystem grew, mid-tier media companies experienced the largest share growth, the study found. Market share among the top 11-25 media companies reached 11% in 2024, an increase of 3.1% since 2023. This growth highlights the rising influence of emerging digital platforms, democratizing the ad ecosystem where brands are allocating budgets beyond the largest platforms.
“The biggest shift in market share came from the mid-tier companies, growing at a greater rate than both the largest and the smallest players,” said Cohen. “These midsized companies are adopting new business models, encouraging creator engagement, and leveraging AI and data-driven insights to offer more personalized, cost-effective advertising solutions. As a result, we’re seeing renewed growth and a next generation market taking shape.”
“While digital advertising reached new heights in 2024, there are many forces that are quite literally transforming our industry in real time,” added Jack Koch, senior vice president, research & insights, iAB. “Next year we expect the industry to look quite different as media companies adopt new business models and lean heavily on AI, not only survive but thrive.”
Looking forward, the study made these predictions for 2024:
- AI-Driven Advertising: From Automation to Transformation: AI has evolved from a tool for automation to a transformative force in digital advertising, driven by generative and agentic models that can create content, make autonomous decisions, and manage campaigns end-to-end. These advancements are disrupting traditional ad channels like search, shifting from keyword bidding to native, conversational ad experiences embedded in AI-generated results. However, widespread adoption remains limited due to challenges with data readiness, tool fragmentation, and compliance. As AI takes over operational tasks, human creativity remains vital—pushing companies to redefine how technology and talent work together in the new media model.
- Creator Economy: Shifting to Long-Term Partnerships and Multi-Platform Expansion: The creator economy is thriving as brands shift from one-off influencer deals to long-term partnerships, aiming for more authentic, sustained engagement. Creators are expanding beyond social media into podcasts, newsletters, and retail partnerships, unlocking new monetization avenues. Short-form video dominates, but emerging platforms are reshaping consumer behavior and pushing brands to adapt. While platforms offer better revenue-sharing models, many creators still face challenges in a crowded space. Success hinges on authenticity, audience trust, and long-term strategy.
- Privacy & Regulation: The Rise of First-Party Data Strategies: The digital ad industry is shifting toward privacy-first strategies as signal loss and new state privacy laws limit user-level tracking. Brands are adopting first-party data, contextual targeting, and consent-based tools to stay compliant and effective. As consumers demand both protection and personalization, trust and transparency have become key competitive advantages.
- Streaming CTV, and Skinny Bundles: Monetizing in a Fragmented Landscape: As advertisers shift budgets from linear TV to streaming, ad-supported tiers from Netflix, Disney+, and Amazon Prime are expanding inventory while driving down CPMs. Live sports streaming on platforms like YouTube TV and Amazon is attracting ad dollars, while skinny bundles help reduce churn and boost ad-supported revenue. With increasing fragmentation, programmatic CTV and self-serve ad platforms are giving brands more control and efficiency in reaching engaged audiences.
- Business Model Reinvention: AI, commerce, and media are reshaping advertising, with brands adopting multi-platform strategies and AI-driven automation to stay competitive. Retail media networks offer high-intent audiences and closed-loop measurement, while new monetization models like subscription-based content and shoppable media are on the rise. As consumer habits evolve, many advertisers are expanding their presence across emerging networks to hedge against platform risk and maximize flexibility, giving brands a competitive edge in a fragmented market.
Click here to access the “IAB Internet Advertising Revenue Report: Full Year 2024.” Experts from IAB, PwC, and MAGNA will discuss key findings and trends from the report during a webinar on April 24th, at 2pm ET. Register here.
