In 2024, Search advertising in the U.S. brought in $102.9 billion, an increase of 15.9% from 2023. This data is according to a recent IAB Internet Advertising Revenue Report conducted by PwC for the Year 2024.

This figure is nearly 40% of all U.S. Internet ad revenue. The numbers show that even with new formats gaining ground, advertisers still lean heavily on search as a reliable way to reach users. The format continues to be the largest in the internet advertising business, and its year-over-year growth outpaced much of the rest of the market, which had seen a slower climb just a year before.

Brands are still prioritizing performance, and platforms like Google and Microsoft’s Bing are doubling down on AI-powered search tools that can drive better ad relevance. For instance, Google has an AI feature that enables advertisers to create images of people using text prompts. The company is also testing Search Max, a new tool that lets advertisers optimize search campaigns.

These investments are helping search stay important for marketers looking to connect with consumers at the decision-making point.

Social media bounces back with strong growth

Social platforms also saw a major rise. According to the data, social media ad revenue rose 36.7% YoY, totaling $88.8 billion in 2024. That’s a $23.8 billion jump from the year before.

A mix of factors drove this growth. The election-year spending was a clear boost. But so was the continued rise of social commerce, creator partnerships, and short-form video formats that are getting popular and more shoppable by the day. 

Platforms like TikTok, Instagram, Snapchat, and YouTube capitalized on these areas. In December 2024, TikTok Shop reported over $100 million in sales on Black Friday. 

These social media platforms are also offering more tools for brands to integrate commerce directly into content and more ways to measure impact. 

Digital video continues its rapid climb

The report showed that digital video advertising revenue grew 19.2% to $62.1 billion, making it the fastest-growing format in 2024.

This was driven by platforms like YouTube, Roku and Hulu and also short-form video players and streaming services experimenting with ad tiers. For instance, in Q4 2024, Roku’s ad business grew to $1.035 billion in revenue. 

Peacock, Tubi, and Netflix have all entered or expanded their ad-supported strategies. Brands are placing more bets on connected TV and mobile video placements that offer a mix of reach and attention. Google recently expanded Display Ads to more CTV networks. The expansion will enable advertisers to gain access to third-party inventory from TelevisaUnivision, MLB, and FOX News. 

Programmatic keeps scaling

Programmatic advertising also had a big year. Revenues hit $134.8 billion, an 18% jump from 2023. That growth shows how much the industry still relies on automated ad buying, even as the ecosystem undergoes big changes, especially around privacy.

More brands are demanding control, better targeting, and transparency, especially as third-party cookies continue to phase out. Programmatic is evolving with that demand, and users are seeing a lot more focus on first-party data, contextual signals, and dynamic creatives that can adapt in real time.

Retail media networks take a bigger share

One of the biggest shifts in 2024 was the rise of retail media networks. Ad revenues from this sector jumped 23% to $53.7 billion. The $10.1 billion increase reflects how brands are moving towards first-party data ecosystems offered by retailers like Amazon and Walmart Connect.

A need for privacy-compliant, closed-loop reporting is driving this trend, the report says. With cookies going away and privacy laws tightening, advertisers are seeking platforms that can give them direct access to shoppers with measurable outcomes. These networks offer that, along with increasingly sophisticated ad tech that supports everything from sponsored listings to off-site targeting.

Podcasts are getting popular

Podcast advertising had a strong year as well, with a 26.4% increase in revenue up from just 5.5% growth last year. This increase is largely tied to both shifting listening habits and the 2024 election.

More users are turning to on-demand audio. For instance, podcasts are one of YouTube’s fastest-growing content formats on TV. The format is emerging as a go-to channel for political campaigns and advertisers looking to reach engaged, niche audiences. 

Advertisers in other verticals are starting to follow suit, drawn by the medium’s intimacy and its ability to drive mid-to-lower funnel results. Recent reports say Netflix is considering the video podcasting market.

Platforms like Spotify, Acast, and iHeart are also expanding their programmatic audio offerings and better measurement tools, which is helping unlock more brand spend.

Overall ad revenue in the U.S. digital ad industry

Overall, in 2024, the ad revenue for the digital ad market reached $259 billion, a 15% year-over-year increase from 2023. The growth can be attributed to changes in consumer behavior, the adoption of new technologies, and regulatory changes in the digital ad industry. 

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