Dublin, Jan. 22, 2026 (GLOBE NEWSWIRE) — The “Digital Advertising Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031” has been added to ResearchAndMarkets.com’s offering.
The Global Digital Advertising Market is projected to expand from USD 414.52 Billion in 2025 to USD 819.51 Billion by 2031, achieving a compound annual growth rate of 12.03%.
Digital advertising entails promotional efforts distributed via online mediums like search engines, social media networks, websites, and mobile apps to engage specific target groups. Key growth factors include the worldwide spread of high-speed internet and the rising dependence on smartphones for media consumption, which allow advertisers to utilize precise data analytics for optimizing campaigns. This shift is further fueled by the growing dominance of e-commerce, causing brands to move substantial funds from traditional media to digital spaces to guarantee measurable interactions and wider audience coverage.
Despite this strong growth, the sector confronts major hurdles related to stricter privacy laws and data protection norms. Enforcing tighter compliance rules and the gradual elimination of third-party cookies hinder marketers’ capacity to monitor user actions and provide personalized content efficiently. According to the Interactive Advertising Bureau, internet advertising revenues in the United States rose by 14.9% in 2024 to hit a record $258.6 billion, illustrating the industry’s financial durability even while navigating these changing operational limitations.
Market Drivers
The widespread adoption of social media platforms combined with the strategic use of influencer marketing acts as a major accelerator for the market. Advertisers are increasingly focusing on these channels to exploit sophisticated algorithmic targeting and the high engagement associated with short-form video, fostering stronger consumer relationships. This environment enables brands to distribute highly personalized communications at scale while leveraging creator-driven stories to establish trust across varied demographics. Highlighting this trend, Meta reported in its ‘Third Quarter 2024 Results’ in October 2024 that advertising revenue grew by 19% year-over-year to $39.9 billion, confirming the enduring power of social platforms in attracting significant marketing investment.
Concurrently, the booming e-commerce industry has transformed retail media networks into essential advertising avenues. With traditional tracking methods weakening due to privacy adjustments, retailers are capitalizing on their vast first-party data by providing closed-loop attribution models that connect ad views directly to sales. This ability drives brands to shift budgets toward platforms offering the highest purchase intent and measurability. As evidence of this shift, Amazon’s ‘Q3 2024 Financial Results’ from October 2024 showed a 19% year-over-year increase in advertising services revenue to $14.3 billion. This trajectory is consistent with wider industry patterns, with Dentsu forecasting that digital channels will comprise 59.6% of total global advertising expenditure in 2024.
Market Challenges
Stricter privacy regulations and the systematic elimination of third-party cookies represent significant obstacles to the smooth growth of the global digital advertising market. These developments fundamentally alter the data infrastructure that advertisers have long relied upon to track user activity across various websites and apps. As access to detailed user data becomes restricted, the accuracy of audience targeting suffers, resulting in “signal loss.” This decline in data quality creates growing difficulties for marketers attempting to precisely link conversions to specific ads or to assess campaign performance with the level of detail that was formerly available.
As a result, this reduction in transparency compels advertisers to spend more to generate comparable levels of consumer engagement, effectively lowering their return on investment. According to the ‘Interactive Advertising Bureau’ in ‘2024’, 87% of ad buyers reported that their advertising costs have increased specifically because of privacy legislation and the loss of consumer data signals. This inflationary trend in media purchasing forces brands to be more prudent with their digital budget distribution. The consequent inefficiency limits the scalability of programmatic advertising and imposes barriers for new market entrants who lack the proprietary first-party data needed to operate in this constrained environment.
Market Trends
The incorporation of Generative AI for creative automation is revolutionizing the creation and distribution of digital advertisements by facilitating hyper-personalization on a massive scale. By utilizing sophisticated machine learning models, advertisers can instantly produce thousands of creative iterations designed for specific audience segments, which significantly lowers production expenses while enhancing campaign flexibility. This technological advancement permits brands to transition from static materials to dynamic, responsive content that optimizes itself in real-time according to user engagement metrics. In October 2024, Alphabet Inc. reported in its ‘Third Quarter 2024 Results’ that advertising revenue rose 10% year-over-year to $65.9 billion, a result the company largely credited to the swift adoption of AI-driven creative and search tools by marketers.
At the same time, the rapid rise of Connected TV (CTV) and OTT advertising is transforming the video sector as budgets move from linear television to streaming platforms. This shift is fueled by CTV’s unique capacity to merge the high-impact visual experience of traditional broadcast TV with the precise targeting features of digital media, including addressable advertising and cross-device tracking. As viewers continue to switch from cable bundles to on-demand services, advertisers are focusing on these channels to engage fragmented audiences with higher accuracy. According to the Interactive Advertising Bureau’s ‘2024 Digital Video Ad Spend & Strategy Report’ from April 2024, Connected TV advertising expenditure is expected to grow by 12% year-over-year to $22.7 billion, exceeding the growth rates of the wider media market.
Key Players Profiled in the Digital Advertising Market
- Alphabet Inc.
- Meta Platforms, Inc.
- Microsoft Corporation
- Snap Inc.
- Oracle Corporation
- Magnite, Inc.
- Adobe Inc.
- Spotify USA Inc.
Report Scope In this report, the Global Digital Advertising Market has been segmented into the following categories:
Digital Advertising Market, by Platform:
Digital Advertising Market, by Advertising Format:
- Social- Media
- Search Engine
- Video
Digital Advertising Market, by End-User Vertical:
- Automotive
- Retail
- Healthcare
- BFSI
- Telecom
- Others
Digital Advertising Market, by Region:
- North America
- Europe
- Asia-Pacific
- South America
- Middle East & Africa
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 185 |
| Forecast Period | 2025 – 2031 |
| Estimated Market Value (USD) in 2025 | $414.52 Billion |
| Forecasted Market Value (USD) by 2031 | $819.51 Billion |
| Compound Annual Growth Rate | 12.0% |
| Regions Covered | Global |
For more information about this report visit https://www.researchandmarkets.com/r/wnvwza
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- Digital Advertising Market
