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Small businesses see higher engagement from phone display ads: Our Industry KPI data from Taboola uncovers a way for SMBs to compete with larger marketers.

Every customer鈥檚 reaction, share, or comment influences the reach of a bank鈥檚 message鈥攁nd could threaten the bank itself. Banks should use social media to actively engage online communities, not just to display ads.

From 2014 to 2021, spending on non-video programmatic digital display ads in the US had compound annual growth of 27.3%. In 2022, that screeched to a halt, and spending actually declined 2.7%. In 2023, it will effectively be flat at $58.49 billion.

By 2026, US spending on ecommerce channel ads鈥攁 large subset of retail media鈥攚ill be more than triple its 2020 level, per our forecast. Within the ecommerce channel, both search and display advertising are growing rapidly.

The 鈥淢ad Men鈥� approach of finding the perfect slogan and polished copy isn鈥檛 gospel. For some, we鈥檙e now in the era of unpolished content, disruptive formatting, and what TotalRetail is calling 鈥渨eirdvertising.鈥� These ads take the basic idea of memeification found on social media and extend it to other forms of display advertising, including out-of-home (OOH) and print.

Retail media is moving from its initial state (search and on-site display ads) up the funnel toward social, open web, and connected TV. As retail media networks move into their next era, they should leverage partnerships to explore new channels, said Evan Hovorka, vice president of product and innovation at Albertsons Media Collective.

Mid-roll ads, display ads that fully cover a screen, and ads that follow users around a screen were ranked as much more intrusive than any targeting method. Less than half of consumers view targeted ads as 鈥渧ery intrusive鈥� or worse. Just 48.5% of consumers said that ads based on personal information were that intrusive. Consumers don鈥檛 think advertising works on them.

Display advertising, apart from retail media, will follow a similar deceleration pattern. Click here to view our full forecasts for retail media ad spending and digital ad spending in the US. By 2027, the majority of incremental dollars spent on digital advertising will come from retail media. Retail media鈥檚 share of incremental spending in digital advertising will increase to 60% in 2028.

How it works: Under the pilot program, merchants can pay to boost their rankings on search results as well as for display ads on the marketplace. Sellers are charged on a cost-per-click basis, similar to Amazon鈥檚 model. The pilot is aimed at merchants with local US inventory, although sellers based in China and other regions have also participated.

I think we've probably all seen a lot of AI creative and display ads and had no idea because it was AI-generated text or something like that. Whereas video ads, the one you cited like the Coca-Cola ad, it's much more obvious when that creative falls into the uncanny valley.

Conversely, tech and media companies prefer display advertising far more than the national average:. Media and entertainment brands emphasize top-of-funnel awareness campaigns designed to reach the widest possible audiences (think movie releases, TV programming, theme park promotions, or sporting events). Technology and electronics companies emphasize product branding and flashy visuals.

Reddit expands its IAS partnership: New tools tackle fraud, improve viewability, and strengthen brand confidence on the UGC-heavy platform.

Amazon鈥檚 sponsored product ads, targeted based on keyword searches, have declined in spending share, while its sponsored display ads, targeted based on user behavior, have slowly grown, per Jungle Scout.

Retailers are prioritizing off-site ad formats, with more than three-quarters of RMN professionals ranking programmatic off-site display ads as the most important, according to February 2025 research from Skai. This focus aligns with advertiser preferences, as off-site programmatic via demand-side platforms (DSPs) is the most commonly used tactic among advertisers.

Conversely, healthcare and pharma spends less on display ads as a share of total digital ad spending (42.9%) than any industry we cover, except for travel. Total display ad spending will reach $9.48 billion in 2024, up 15.3% YoY. Display spending growth will slow to 4.5% next year and 8.3% in 2026, when it will reach $10.74 billion.

And more and more of the spending on display ads will start happening away from retailers鈥� websites. Advertisers will spend nearly identical amounts on on-site and off-site display ads in 2024. Off-site and on-site display ad spending will each more than double over the next five years.

The main barrier facing in-store retail media is the expense of outfitting stores with the necessary technology to both display ads and measure attribution. Many of retailers鈥� efforts rely on existing infrastructure, like radio networks and digital screens. Despite these limitations, we expect in-store retail media ad spending to jump by 45.5% next year and to surpass $1 billion by 2028.

As Google pushes into AI, new automated ad formats are transforming paid search and display advertising. Performance Max campaigns are helping advertisers overcome some signal loss, while Demand Gen is shifting how brands approach discovery-based marketing. A potential TikTok acquisition could revolutionize Microsoft鈥檚 ad business.

Advertisers and marketers can鈥檛 afford to waste budget, so we foresee a partial shift away from display ads and renewed emphasis on search鈥攚ith one big exception, retail media.

While they are bought, sold, and distributed very differently, most affiliate ads were regarded by consumers about as negatively as native display ads, or right-rail banner ads. They were viewed much less negatively than mid-roll ads, floating display ads, or pre-roll video ads. Exclusive coupons and discount codes were seen as 鈥渧ery intrusive鈥� by the smallest percentage of US consumers in our survey.

Marketers worldwide prefer display advertising over search advertising at roughly the same rate as in the US. Retail media, meanwhile, is even more prevalent on a global scale than it is in the US鈥攁lthough this is mostly due to China鈥檚 outsize weight. Display advertising is more popular鈥攁nd slightly faster growing鈥攖han search advertising. Both leading digital formats will see healthy growth.

Amid dizzying policy unpredictability and a grab bag of unpleasant economic possibilities, precise ad spend forecasting is challenging. A scenarios-based approach can help clarify potential outcomes.