Brands and companies worldwide are expected to spend a whopping $740 billion on digital advertising in 2024, $61 billion more than last year, and most of that value will come from search ads, the market`s largest and highest-grossing segment.
According to data presented by OnlyAccounts.io, brands will spend over $300 billion on search advertising in 2024, or 10% more than last year.
Total Spending on Search Ads to Grow by $27 Billion
Despite considerable disruptions from social media, influencers, retail media, and artificial intelligence, search advertising has again proved to be the biggest revenue-generating machine in the digital advertising landscape. The entire market has undergone significant changes, with AI and natural language processing triggering the biggest market transformation since Google first introduced its sponsored keyword search auction over twenty years ago. Still, brands and companies continue pouring hundreds of billions of dollars into this type of advertising.
Five years ago, the total spending on search advertising amounted to $167.5 billion, according to a Statista survey. A year later, this figure jumped to over $230 billion and continued rising. After reaching more than $250 billion in 2022, the annual search ad spending touched almost $280 billion last year, marking a decade of continuous growth. However, Statista expects 2024 to set a new record. Statistics show brands and companies are expected to pour $27 billion more into search ads in 2024 than last year, pushing the total spending to an all-time high of $306.7 billion. Also, this shows that the annual spending on search ads has more than doubled in the past five years.
In global comparison, almost 45% of total search ad spending this year, or $132 billion, will come from the United States. Far below, China ranked as the second-largest market with $61 billion in total spending. The United Kingdom, Japan, and Germany follow, with $23 billion, $11 billion, and $9 billion, respectively.
Also, the Statista survey showed that mobile ads will make up 65% of total ad spending this year, or 1% more than last year. Desktop search ads will make up the remaining 35%.
Search Ads to Make 41% of Total Digital Advertising Revenue in 2024
Search ads are the largest revenue stream in the digital advertising landscape and have the largest market share. The Statista data show that 41% of the total digital advertising revenue in 2024 will come from search ads, much more than any other type of advertising in the market.
In comparison, video advertising will make $191 billion or 25% of total market revenue, almost the same as banners. Influencer ads will bring in another $35 billion this year, making less than 5% of the total revenue in the digital advertising market.
