Ad revenue in the U.S. 2023-2027, by medium

In 2023, online advertising revenue in the United States will exceed 222 billion U.S. dollars, more than all other listed media combined. The source forecast that digital ad spending will continue to expand over the following four years, reaching almost 272 billion dollars by 2027. Meanwhile, TV, radio, and out-of-home (OOH) ad expenditures will increase at a compound annual growth rate (CAGR) of less than two percent during that period. TV ad revenue – which excludes connected TV (CTV) figures – will barely surpass 74 billion dollars by 2027, according to the projections.

It is a digital world, after all

The internet's hegemony in the American market seems far from reaching a ceiling despite its skyrocketing growth throughout the 21st century. Between 2012 and 2022, online ad revenue in the U.S. increased nearly six-fold, surpassing 200 billion dollars in the latter year. Search, display, and video collectively accounted for over 90 percent of that figure, making them the U.S. leading formats by share of the digital ad spend.

Traditional media's role in the ad landscape

The ranking of fastest-growing ad media in the U.S. in 2022 reveals an outlook of offline and online channels in the early 2020s. Cinema and OOH ad revenues recorded double-digit growth rates primarily due to their recoveries since the pandemic, with the latter increasingly relying on digital outdoor solutions (DOOH). Business-to-business (B2B) and the video games and eSports segments also experienced double-digit growth rates but as a result of more recent trends in the American mediascape.