In 2023, paid search advertising revenue in the U.S. hit a new high, reaching $88.8 billion out of a total digital advertising revenue of $225 billion.
Although paid search remains dominant, its growth rate has slowed compared to other digital advertising formats.
Despite challenges like rising costs and decreasing transparency, advertisers continue to invest in paid search due to its effectiveness in driving results for brands and businesses.
Key points from the report include:
– Paid search maintains the largest market share of advertising at 39.5%, although it has decreased slightly from previous years.
– Year-over-year growth for search advertising is slower compared to the digital industry as a whole and most other ad formats.
– The overall state of digital advertising remains resilient, with advertising revenue continuing to grow despite factors like inflation and rising interest rates.
Q4 of 2023 saw the highest growth rate in advertising revenue at 12.3%.
– Social media ad revenue increased by 8.7% year-over-year, reaching $64.9 billion in 2023, with significant growth in the second half of the year.
– Video advertising accounted for $52.1 billion, or 23.2% of all advertising revenue.
– Display advertising revenue remained high at $66.1 billion, although year-over-year growth decreased to 4% from 12% in 2022.
– Retail media networks experienced a 16.3% increase in revenue year-over-year, reaching $43.7 billion.
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