Paid search dominated online advertising in 2024

New research published by the Interactive Advertising Bureau (IAB) reveals that digital advertising spend in aggregate grew by a record 15% in 2024 to $159B.

Broken down by medium:

• Search $102.9B
• Display $74.3B
• Video $62.1B
• Audio $7.6B
• Other $11.7B

All media categories saw growth of spend in 2024.

Digital video was the fastest-growing format in 2024.

IAB analysts attribute this growth in part to AI enabling platforms to make advances in adaptive decisionmaking, creative generation and commerce integration - but that "data security, interoperability and integration challenges remain."

They also found that:

• Ad-supported streaming of live sports is driving "premium ad investment".
• Most brands are now integrating creator marketing into their media mix.
• Integration of AI, commerce, data and content is powering a surge of retail media networks and other commerce media.
• The US Presidential election and the 2024 Olympics helped fuel advertising growth.
• Social media advertising growth picked up after a slower 2023.
• Companies #11 through #25 - primarily mid-sized publishers, retail media networks and emerging digital platforms - saw strongest revenue growth in 2024.

Key trends IAB identified for 2025:

• AI-driven advertising will continue to reshape the entire media business model.
• Brands will increasingly turn to privacy-first strategies using first-party data, contextual advertising and collaboration tools like data clean rooms.
• Use of streaming, CTV and "Skinny Bundles" - small, cheap streaming packages - will increase to satisfy consumer demand.
• The creator economy will see a shift to long-term partnerships and multi-platform expansion.
• Reinvention of the digital advertising business model will continue, reshaped by consumer expectations.