In 2024, internet ad spending returned to double-​digit growth. Marketers shelled out 14.9% more than the previous year, and the total amounted to $258.6 billion. For insights into the future of digital marketing, the IAB and PwC put together the Internet Ad Revenue Report Full Year 2024. Their findings can help you sell more advertising and guide your account this year.

Seasonality of Digital Advertising

The IAB has published an annual ad revenue report for many years. They always report on multiple areas of interest, including seasonality. In terms of seasonality, advertisers spent slightly more in the second half of 2024, $138.5 billion version $120.1 billion in the first half. The higher spending level in the last six months of 2024 is understandable. The contentious elections and the seasonal holiday spending combined to drive the ad growth.

We won’t see the heavy election ad spending in 2025. But media sellers may find that accounts will plan to increase ad spending in the second half of the year. 

Who Contributes to Digital Spending?

In assessing the future of digital marketing, it’s helpful to review the past. In the past 24 years, 10 large companies have controlled a significant portion of online ad spending. The amount under the control of these companies has increased from 78.1% to 80.8%.

In addition, the companies that hold the slots between 11 and 25 have increased their portion of ad spending. They’ve gone from controlling 6.2% to 11.0%.

What does this mean for everyone else, especially smaller advertisers? The share of ad buying they control has decreased from 15.7% to only 8.3% of the total. However, it’s still a substantial sum. In 2024, the 8.3% accounted for $21.46 billion in online ad spending.

Which Formats are Performing?

You can sell your media format to accounts by understanding what will work for them and their target audiences. Let’s review which formats are performing.

Video

Spending on digital video ads experienced over a 19% growth rate in the last year. Around 24% of all online ad spending goes to the digital video format. This spending amounts to a total of $62 billion. It’s a good bet that the future of digital marketing will contain a heavy dose of video.

While digital video is definitely a growth vehicle, paid search continues to do well. It captured $102.9 billion in 2024 spending.

Display

The IAB includes sponsorships, banners and native ads in its Display category. For now, this category is still more popular with advertisers than search. Spending on Display amounted to $74.3 billion last year.

Audio

Digital audio advertising totaled $7.6 billion in 2024. The format saw a slowdown in its growth rate. Overall, it scored 8.5% in growth over 2023. But podcasting, a part of digital audio, surged with 26.4%. Podcasting ad revenue now amounts to $2.433 billion. This format is a category to watch when considering the future of digital marketing.

Directories

The other category is the IAB’s classification system is directories, classified, and lead generation. Spending on these formats reached $11.7 billion last year.

The Shift from Influencers to Content Creators

The world of influencers is shifting. Brands paid influential individuals to post favorable content, typically videos on social media. These arrangements were often short-​lived and worked to boost interest in and sales of a new product.

Some of these relationships are changing. Brands use influencers as creators. And creators are developing content ranging from podcasting to newsletters. However, video remains a key platform. What’s most important in this change is that brands want monetization from their investment.

What Does the Future of Online Advertising Look Like?

IAB analysts also studied the data they collected and reported on marketer trends. Some of these trends are linked to technology.

First-​party data

Marketers more interested than ever in first-​party data. Google has backed off from its plan to discontinue third-​party cookies. But there’s growing interest in protecting consumer data when it’s in the hands of a third party.

Your accounts can work around this problem. They can convince consumers to share contact information with them. And then, they can use the data to effectively personalize their messaging. By protecting data, they build credibility with consumers.

Generative AI

Many marketers are already using generative AI tools to develop and improve content. Other marketers are hesitant because they don’t understand or trust the technology. However, you can help them, especially if they’re struggling to develop creative content. With an AdMall subscription, you can tap the AI Idea Generator and develop content that specifically targets the best audiences over 400 industry verticals.

Streaming Company Bundles

As more streaming companies seek to reduce subscriber churn, they are joining forces to offer skinny bundles. These bundles may offer content that targets specific audiences and may make it easier for brands to reach them with digital video campaigns.

Summary

As you work with accounts to sell your digital media formats, check out the Digital Audit tool on AdMall. This tool will give you a snapshot of the account’s current digital profile and will make suggestions on how to improve their visibility. With this tool, you can be on track with the future of digital marketing.