Digital Advertising Grew 14.9% to $258.6 Billion In 2024: IAB/PwC Report
Digital advertising generated a record $258.6 billion in revenue in 2024, powered by big events such as the Olympics and the Presidential election, according to new data from the Interactive Advertising Bureau.
Spending grew 14.9% from 2023, the biggest jump since 2021, according to the Internet Ad Revenue Report, compiled by PwC.
The growth was spread around the industry, with digital video, retail media, social and search showing the biggest gains. And it wasn’t the biggest companies showing the largest increases: publishers ranked 11 through 25 grew the fastest, gaining 3.1% in market share. While these mid-tier companies grew faster, the top 10 companies still controlled an overwhelming 80.8% share of digital advertising revenue. Firms ranked 11-25 had 11% of digital revenue, and the remaining companies accounted for just 8.3% of revenue.
The IAB is looking ahead to another strong year in 2025. This year’s growth drivers include advertising driven by artificial intelligence, a shift of brands moving from one-off deals with influencers to long-term partnerships, changes in privacy and regulation and changes in CTV that bring advertisers additional content and more control over their campaigns.
“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,” said David Cohen, CEO of the IAB. “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.”
In 2024, digital video grew 19.2% to $62.1 billion, search rose 15.9% to $102.9 billion, display increased $12.4% to $74.3 billion, podcast advertising jumped 26.4% to $2.4 billion and social increased 36.7% to $88.7 billion.
Commerce media, including retail media networks, continued its strong growth in 2024, with revenues rising 23% to $53.7 billion. The increase was powered by advertisers using first-party data as a key to planning and targeting their campaigns, the report said. “Given the sector’s rapid expansion in recent years, its current revenue trajectory signals strong long-term growth potential, positioning retail media networks as a key pillar in the future of performance-driven advertising.”
Source: IAB/PwC Internet Ad Report
The report used data and information reported directly to PwC from companies selling advertising on the internet as well as publicly available corporate data.
“As the landscape grows more complex and outcomes-focused, marketers must adapt to a marketplace that increasingly rewards agility, accountability, and relevance,” the report said. “The future of advertising lies in ecosystems that converge content, commerce, and customer data, all orchestrated by intelligent systems. Brands that activate against this model – leveraging AI to align audience attention with shoppable moments and outcome-driven measurement – will be best positioned to lead in a performance-focused, privacy-aware, and increasingly fragmented digital marketplace.”
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Active Media Services said it will use VideoAmp’s measurement data to measure custom audiences across linear TV, connected TV and digital advertising for its clients.
AMS clients include Omaha Steaks and Quicken.
"By bringing VideoAmp’s custom audiences to linear we have a common currency and a true effective CPM across all video,” said Alex Sapoznikov, CIO of AMS. "VideoAmp has an amazing combination of scale, speed, and technical integrations, allowing us to be even more strategic in how we plan and buy video. We can compare custom audience CPMs to traditional demo CPMs to see what we’re really getting for our clients. It’s finally all bought and measured in one place."
VideoAmp’s VALID big-data technology will be used by AMS’s XACTV, Involved Media and Active International Units.
"We are thrilled for AMS to be ‘Powered by VideoAmp,’ as they deliver customized, actionable audiences across broadcast, cable, and streaming," said Josh Hudgins, CPO of VideoAmp. "Our work with AMS speaks directly to our mission of transparent media measurement, and we're excited to see how they employ our suite of APIs to drive innovation in their product offering.”
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Magnite said it reached an agreement with Western Union, which is looking to grow its new media network business.
Under the deal, Magnite will provide Western Union with technology to buy media as an advertiser and monetize its owned media assets.
Western Union Media Network is the first commerce media company to use Magnite’s ClearLine product, which allows ad buyers to purchase premium streaming inventory directly from publishers.
“Magnite’s expansive technology and service offerings make them a versatile partner that can help address our desire to grow our business,” said Chris Hammer, Senior Vice President, Western Union. “We are excited to see this collaboration continue to grow as we scale our Media Network business.”
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Madhive said it named Michael Kim as chief product officer and Laura Colona as chief of staff.
Kim was previously senior VP of product at Samba TV. He’s also worked at Simulmedia and Integrated Ad Science.
Michael Kim and Laura Colona (Photos courtesy of Madhive)
Colona was most recently senior VP, marketing, at Talon. Before that she held jobs at the OAAA, MediaMath and FreeWheel.
“With the local media landscape evolving rapidly, we’re focused on building the team and technology to lead this transformation,” said Spencer Potts, CEO of Madhive. “Michael and Laura will help ensure our platform remains the fastest, most adaptable answer for broadcasters looking to modernize operations, maximize margins, and unlock entirely new revenue streams.