Digital Advertising Market is At Its Peak in Q1 of 2024 After Seeing Continuous Decline in Past Few Months

Sensor Tower published its Digital Marketer Index Report that shows the digital advertising market is progressing very fast and there is no sign of it slowing down anytime soon. In the USA, the digital ad spend on all devices has already reached $25 billion and has gained 3.3 trillion impressions in Q1 of 2024. The digital advertising market has shown 16% YoY growth from last year, after being down 13% in the previous quarter during the holiday season. This shows that the digital advertising market is going to go even more in the upcoming quarters this year.

The rise in the digital advertising market isn’t just observed in the USA because other markets have also shown remarkable growth in Q1 of 2024. Australia, Mexico, Canada and New Zealand have seen 30% rise in ad spend this quarter as compared to Q1 of 2023. The ad spend on Consumer Packaged Goods and Shopping also rose to 14% and 4% respectively in Q1 of 2024. 25% YoY increase in Travel and Tourism was also observed. Travel and Tourism saw a 51% increase in Facebook ad spend in Q1 of 2024 than it was in Q1 of 2019.

Software also achieved the highest ad spend in the USA, with more ad spend in Q1 of 2024 than any software advertisers in Q1 of 2023. These software advertisers include Grammarly, Adobe Creative Cloud and Shopify. AI was also the reason why many marketers are interested in Software now. Microsoft Pilot was one of the top five software advertisers in terms of ad spend.

On the other hand, Media and Entertainment ad spend decreased in Q1 of 2024. This drop was not only observed in the USA, it was also observed in Canada, Mexico, Germany, Brazil and the UK. This is due to several new competitors in the market like Disney Plus and Paramount Plus. Vacation rentals and homestays also increased in ad spend in Q1 of 2024 despite it not being a holiday season in the USA. VRBO, Expedia and AirBnb were at the top by ad spend in Q1 of 2024.

Read next: YouTube Is One of the Biggest Reasons Why Kids Get Influenced to Buy Products

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