45+ Online Advertising Statistics (Facts and Figures for 2024)

Despite the economic impact of the 2020 pandemic, online advertising spending continued to increase in 2020 and 2021. The future growth figures look promising, too.

As spending grows, the online marketing ecosystem will be more competitive than ever in 2024. Marketers and business owners need to personalize the customer experience and advertising communication to stand out in this landscape. 

We’ve curated the latest online advertising statistics to highlight the importance of digital ad spending and why you should set up digital ads to grow your business. These statistics highlight the supremacy of digital advertising strategies and show how crucial digital campaigns have become in 2024. 

Online Advertising vs. Traditional Advertising Statistics

• 56% of overall marketing* funds are allocated to online channels. Businesses spent $436 billion* on digital advertising versus $196 billion on offline advertising; 
• An average local business allocates 5-10% of its revenue* toward digital/online marketing. Larger businesses allocate about 14% of their business to online marketing; 
• Total search advertising spending worldwide was estimated to be about $144.8 billion*; 
• Companies are expected to spend approx $485 billion* on digital advertising in 2023. 

Digital Advertising Statistics 

• The global digital ad spend will be $602.25 billion in 2023*, with search advertising being the biggest segment; 
• The United States will register the highest digital advertising spending worldwide, with an estimated $232.70 billion spent in 2023; 
• 69% of overall advertising spending will be generated via smartphones by 2026; 
• Customers are 70% more likely* to buy from a retargeting ad; 
• Facebook and Google Ads are the best-performing paid digital ad channels with the highest ROI; 
• Digital ads can increase brand awareness by up to 80%.

PPC Advertising Statistics

• Companies will spend $190.5 billion* on paid search ads globally in 2024; 
• Small to mid-sized businesses spend approximately $9000-10000 monthly on PPC campaigns*; 
• On average, businesses earn $2 on every $1 spent* on PPC ads; 
• 32%* of global companies use PPC to sell their products directly to customers; 
• PPC brings 2x website visitors when compared to organic SEO. 

Mobile Advertising Statistics

• Mobile advertising spending will cross $339 million by 2023*; 
• 78% of mobile searches* result in an in-store retail conversion; 
• 52% of all PPC ad clicks are registered from mobile users; 
• Mobile generates 94% of Facebook’s digital ad revenue.

Video Advertising Statistics

• Video advertising increases conversion rates by up to 86%*;
• Consumers report an increase of 136% in terms of brand association after watching a video; 
• 80% of shoppers watch a YouTube video when they start the shopping process; 
• 90% of consumers agree that videos help them make a buying decision; 
• 40% of shoppers globally purchase the product they discover on YouTube; 
• Video ads account for more than half of Twitter’s digital advertising revenue*.

Display Advertising Statistics

• Customers are 155% more likely to search for a brand after seeing a display ad; 
• Advertisers spend more than $50 million* on programmatic digital display advertising; 
• Targeting audience and placement are the most important optimization tactics used by display advertisers;
• Display ads increase the likelihood of conversion. Consumers who search after seeing a display ad are 59% more likely to convert*. 

Influencer Advertising Statistics

• 92% of consumers trust recommendations from other people over brands; 
• 81% of marketers feel that influencer advertising works for them; 
• Word-of-mouth advertising improves customer retention by 37%* over other methods of advertising; 
• 82% of marketers* plan to have a dedicated marketing budget for influencer marketing; 
• Gen Z’s are most likely to be influenced by influencer advertising. 

Social Media Advertising Statistics

• Social media advertising spending accounts for 33% of all digital ad spending* in 2023; 
• The social media market size is estimated to be worth $231.1 billion in 2023* and is expected to grow to 434.87 billion by 2027; 
• 91%* of businesses use social media for marketing or advertising their business; 
• 86%* of businesses use Facebook for advertising; 
• TikTok is the fastest-growing social media platform, with 40%* of business owners planning to include Tiktok in their social media strategy; 
• 91% of consumers use social media from mobile. 
• Less than 5% of businesses use Facebook video ads currently; 
• Snapchat users are more likely (60%*) to make an impulse purchase and buy from their mobile devices; 
• US consumers mark LinkedIn as the most trusted platform when it comes to advertising; 
• 25% of TikTok users research or buy the product after seeing a TikTok ad or organic post about it; 
• 95%* of Pinterest users use the app to plan or make a purchase. 52%* out of those discover a product on Pinterest and buy the product online later. 

Online Advertising Costs

The cost of running an online campaign can vary greatly based on the platform of choice, your goals, and your audience. You can start from as little as a few hundred dollars a week and go on to spend thousands of dollars. According to a survey in the United States, here’s a breakdown of the cost of advertising, including the cost of advertising on digital platforms: 

You might have to do some research based on the platforms and your own marketing goals before you come to a ballpark figure to start an online marketing campaign. 

Also read: Black Friday Statistics: Key Sales and Shopping Trends

*Sources:

• https://www.gartner.com/en/marketing/topics/marketing-budget
• https://www.marketingcharts.com/advertising-trends/spending-and-spenders-224702
• https://localiq.com/blog/marketing-budget/
• https://www.webfx.com/ppc/statistics/
• https://www.insiderintelligence.com/content/global-digital-ad-spending-update-q2-2020
• https://www.demandsage.com/digital-marketing-statistics/
• https://techjury.net/blog/ppc-stats/
• https://www.statista.com/statistics/276671/global-internet-advertising-expenditure-by-type/
• https://www.webfx.com/blog/marketing/marketing-stats/#ppc
• https://www.smallbizgenius.net/by-the-numbers/ppc-stats/#gref
• https://www.statista.com/statistics/303817/mobile-internet-advertising-revenue-worldwide/
• https://www.webfx.com/blog/marketing/video-marketing-statistics/
• https://www.hubspot.com/state-of-marketing
• https://martech.org/twitter-attributes-more-than-half-of-its-575m-q1-ad-revenue-to-video/
• https://localiq.com/blog/search-ads-vs-display-ads/
• https://www.ion.co/11-essential-stats-for-influencer-marketing-in-2016
• https://influencermarketinghub.com/influencer-marketing-statistics/
• https://hootsuite.widen.net/s/gqprmtzq6g/digital-2022-global-overview-report
• https://www.thebusinessresearchcompany.com/report/social-media-global-market-report
• https://www.statista.com/statistics/203513/usage-trands-of-social-media-platforms-in-marketing/
• https://localiq.com/blog/social-media-statistics/
• https://browsermedia.agency/blog/state-of-social-media-2022/
• https://nuoptima.com/top-snapchat-statistics
• https://thesocialshepherd.com/blog/pinterest-statistics
• https://www.socialmediatoday.com/social-business/pinterest-releases-new-stats-how-pinners-use-platform-make-purchases

About author

Thomas Radavicius

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Thomas Radavicius is a marketing expert with extensive knowledge in various digital marketing topics. He loves staying current with industry trends and enjoys learning about strategies to enhance and grow business marketing efforts. In his free time, Thomas explores new technologies, reads about marketing innovations, and hikes outdoors.

Writer - Anmol Ratan Sachdeva