Banners were the first type of advertising that appeared on the internet back in 1994. Over the last 30 years, consumers have gotten tired of them, naming them their second
in 2021, but marketers are not letting go just yet. In late 2022, more than 40 percent said display ads were developing the
. Display is the second most invested-in digital advertising format in the United States. In 2022,
stood at 58 billion U.S. dollars. It accounted for over 30 percent of the U.S. digital ad spending, 10 percentage points behind the largest format – search. Industry projections show that the expenditure will continue growing at a relatively steady pace in the coming years to exceed 78 billion dollars by 2026.
Mobile first
U.S.
mobile display ad spending amounted to 42.3 billion dollars in 2022. It accounted for roughly 73 percent of the total display expenditure. The share is expected to slowly increase in the near future and reach 77 percent by 2026. While consumers spend most of their online time on smartphones, the viewability rate – one of the digital ad market's effectiveness metrics – may vary widely depending on the platform. Data from the second half of 2022 revealed that only 70 percent of display ads were actually shown to mobile web users. The remaining 30 percent did not meet the viewability requirements set by the ad industry’s self regulatory body MRC. On the other hand, in-app display ads had a
viewability rate of 84 percent. Additionally, mid-2023 data on in-app advertising demonstrated that
Android ads cost approximately twice as much as iOS ads.
A risky business model
Programmatic buying is the driving force of the display ad market in the United States, as nine in 10 display dollars are invested using this transaction method.
U.S. programmatic display ad spending was estimated at 127 billion dollars in the U.S. in 2022, giving it a share of 64 percent of total U.S. programmatic expenditure. The subsegment expects growth rates in a low double-digit range in 2023 and 2024 to reach 168 billion dollars in the latter year. The United States is, by a wide margin, the largest programmatic market worldwide. However, recent data shows that 15 percent of U.S. open internet programmatic ad spend is unknowingly invested into so-called
‘made-for-advertising’ (MFA) sites, which offer poor quality content and are considered a brand safety risk.
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