The digital ad industry has completely overtaken other forms of marketing, so much so that it has become the sole focus for a lot of marketing firms that are trying to create advertising campaigns for their clients. The past two years have seen digital advertising grow by numbers not seen since 2006, with a recent report by PwC noting that the industry grew by 35% in 2021 to reach a total value of $189 billion.
With all of that having been said and now out of the way, it is important to note that much of this growth is being fueled by video based ads in digital spaces. Combining OTT, CTV and ads bought by streaming companies, this sector of the industry grew even faster than the industry at large, increasing its total market value by 50.8% to reach just short of $40 billion, or $39.5 billion to be precise. IAB, the company that hired PwC to conduct the research, stated that this rate of growth exceeded all of their expectations.
Such growth in digital video advertising is impressive, but in spite of the fact that this is the case it didn’t see the highest growth rate out of all digital ad sectors. That honor belongs to digital audio, which witnessed a growth rate of 57.9% although its total value of $4.9 billion is still a fraction of that of video. Regardless, digital audio is shaping up to be a hotbed for new marketing investments.
Social media sites also saw a pretty healthy growth rate, with their value increasing to $57.7 billion which is the largest share of the total out of all sectors. Despite Meta’s downfall, growth seen in Snapchat and TikTok helped social media to continue to increase its value for marketers.
The economy of the internet has been growing faster than the economy of the US itself, and now 12% of the global superpower’s multi-trillion dollar economy is now based on various internet services and industries. Chances are that this proportion will continue to rise as more work shifts to the internet.
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Read next: Insider Intelligence Reveals TikTok Generated More Ad Revenue Than Snapchat and Twitter Did Combined
With all of that having been said and now out of the way, it is important to note that much of this growth is being fueled by video based ads in digital spaces. Combining OTT, CTV and ads bought by streaming companies, this sector of the industry grew even faster than the industry at large, increasing its total market value by 50.8% to reach just short of $40 billion, or $39.5 billion to be precise. IAB, the company that hired PwC to conduct the research, stated that this rate of growth exceeded all of their expectations.
Such growth in digital video advertising is impressive, but in spite of the fact that this is the case it didn’t see the highest growth rate out of all digital ad sectors. That honor belongs to digital audio, which witnessed a growth rate of 57.9% although its total value of $4.9 billion is still a fraction of that of video. Regardless, digital audio is shaping up to be a hotbed for new marketing investments.
Social media sites also saw a pretty healthy growth rate, with their value increasing to $57.7 billion which is the largest share of the total out of all sectors. Despite Meta’s downfall, growth seen in Snapchat and TikTok helped social media to continue to increase its value for marketers.
The economy of the internet has been growing faster than the economy of the US itself, and now 12% of the global superpower’s multi-trillion dollar economy is now based on various internet services and industries. Chances are that this proportion will continue to rise as more work shifts to the internet.
Read next: Insider Intelligence Reveals TikTok Generated More Ad Revenue Than Snapchat and Twitter Did Combined
