Online advertising refers to the dissemination of commercial messages through digital media channels to a large audience. Ecommerce, Non-Search, and Search are the various categories of online advertisement.
The market for online advertisements in the US stood at $129 billion in 2021. Online advertisements grew 15% in 2021 following an increase in the number of internet users in the region and the recovery in demand in the post-COVID-19 pandemic period, which led to businesses resuming their operations full-scale. Many new companies adopted digital advertising platforms to promote their products and services.
The US ranks first among all countries, with the largest market for online advertisement. This shows the country’s strong presence in digital advertising and technological advancement. Moreover, major companies in the region such as Amazon, Google and Meta are propelling the online advertisement market.
The online advertisement market in the US grew at a CAGR of 15.3% during 2017–2021. This explains the growth of alternative modes of advertisement, including digital advertising. Online advertising captures a greater share and budget of the advertising market on account of the increase in digital awareness among consumers and the use of digital devices such as smartphones and smart TVs.
Companies globally reported a decline in advertisement spending as the demand decreased owing to restrictions on non-essential services due to the outbreak of the pandemic in 2020.
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