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Digital ad spending by healthcare and pharmaceutical companies went through its own upheaval during the pandemic. Now the industry is settling into a new normal for growth in some channels as consumer media habits have changed.

By the time the market gets back on track in 2024, spending trends will be largely the same as they were before the downturn鈥攚ith some key differences. Key Question: How and where are advertisers spending their programmatic budgets?

The travel and retail industries will post healthy digital ad spending growth figures this year, but many other verticals we track will underperform compared with the national growth average. Next year is looking better for almost all of them.

*蘑菇AV forecast updated in August 2024. **蘑菇AV forecast updated in December 2024.

Total US digital ad spend will increase 13.6% in 2024 to reach $306.94 billion, per our forecast. Display advertising will make up more than half (56.2%) of total digital advertising next year, per our forecast. Search will make up a slightly smaller piece of the pie at 41.7%. Use this chart:. Compare ad spend across grocery delivery brands. More like this:.

B2B digital ad spending will continue to grow at a slower pace across key industries in 2023. More B2B buyers are millennials and Gen Zers, shifting ad buys from search to display, from Google to social media, and from desktop to mobile.

Walmart is well-positioned to gain a larger share of US digital ad spending given the deprecation of cookies and third-party identifiers, plus growing privacy legislation and regulatory constraints. We expect that Walmart鈥檚 US net ad revenues will account for an 8.2% share of US retail media digital ad spending by 2024.

Digital will help keep total media ad spending buoyant this year, just. A rebound is expected for 2024, with video advertising growing faster than any other format. Proportionally, though, video spend will remain relatively small in France and Germany.

How is the US programmatic display market growing鈥攁nd not growing? Which identifiers and post-cookie targeting strategies are working? How is supply-path optimization affecting the number of partners publishers use?

To address the impact of cookie deprecation, 60% of US marketers are turning to first-party data strategies, according to March 2024 data by Epsilon and Phronesis Partners. More than 6 in 10 US marketers plan to keep digital ad spend the same but invest in tactics not reliant on third-party cookies, the same report found. 2. Commerce media may change the way consumers interact with brands.

KEY STAT: CTV will account for about one-tenth of US total digital ad spending in 2023. What is CTV? We define CTV advertising as digitally sold ads that appear on TV screens. This includes ads shown on smart TVs that feature their own internal internet capabilities as well as ads that are transmitted through external devices, such as Amazon Fire sticks, Blu-ray players, and gaming consoles.

While US adults will spend over an hour more with TV than CTV this year, TV time is trending downward as CTV continues to rise. From 2019 to 2024, CTV time will grow by 1 hour鈥攆rom 0:57 to 1:56. In the same period, TV time will decline by 41 minutes to 2:46. The ad spending gap is also narrowing. CTV accounted for less than 10% of traditional TV spending in 2019, but it鈥檒l be near 50% in 2024.

Worldwide digital ad spend will reach $676.94 billion this year, per our March 2024 forecast. If the Jupiter Research figure holds out, that means 12% of digital ad spend could be going to ad fraud. 60% of US digital media professionals believe social media is most vulnerable to ad fraud, according to a September 2023 survey from Integral Ad Science.

Ad spending growth has come back to earth in the US, but not for connected TV (CTV). Total media ad spending will increase by just 7.0% this year, while digital spending will increase by 12.0%. CTV, meanwhile, will cruise along with 27.2% growth, a figure reminiscent of the good old days of boomtime ad spending.

On the media side, digital ad spending will grow by 12.0% in 2023. Further, digital ad spending will maintain relatively high levels of growth, tapering down only slightly to 10.8% by 2026. Retail media will increase by more than 20% in 2023 and 2024鈥攁lmost double the rates of the other forecasts cited.

Brands will build their presence on TikTok to reach its 45.7 million US Gen Z users. We expect TikTok to dethrone Snapchat as the generation鈥檚 most used social media platform in 2024.

Walmart will net $2.22 billion in US digital ad revenues this year, per our forecast.

Digital ad spend is growing and going increasingly toward programmatic formats. Search ad spend is on the rise as well, as retail media growth remains healthy. And social media is in better shape than previously projected. Here are five recent charts forecasting the future of ad spend.

US retail media ad spending will grow 25.8% next year to $51.36 billion, making up 18.1% of total US digital ad spend. Streaming鈥檚 AVOD craze: Eager to grow revenues and subscribers, streamers turned to ad-supported subscription tiers, opening up new channels for advertisers and claiming share from TV.

The share of media dollars being spent on MFA dropped from 15% in September 2022 and January 2023 to 4% between January 2024 and May 2024, according to the Association of National Advertisers (ANA).

In 2024, CTV will only account for $0.13 of the US digital ad spend per hour spent with digital per adult, compared with mobile, which accounts for $0.51, according to our 鈥淭ime Spent With Connected Devices 2024 report. The bottom line: Audiences are diffuse, said Wurmser, and it鈥檚 important to concentrate less on the device and more on your target consumer.

Following nearly 25% growth in 2023, US game ad revenues will total $8.59 billion this year, a growth of 6.7% over 2023, per our March 2024 forecast.

Both are due for a comeback in 2024 as the economy stabilizes and CPG companies begin to feel less pressure on their bottom lines. 4. Though on-site ads dominate CPG, off-site formats are growing in importance. US CPG companies will spend $39.50 billion on digital advertising this year, according to our US CPG Industry Digital Ad Spending 2023 report.