The global digital advertising market is expected to more than double over the next decade, reaching USD 2,189.37 billion by 2035, according to a new report by Market Research Future (MRFR). The market is projected to grow at a compound annual growth rate (CAGR) of 8 per cent between 2025 and 2035, driven by rising internet penetration, smartphone adoption, and increased advertiser focus on measurable, targeted campaigns.
The report estimates the market size at USD 1,013.91 billion in 2025, reflecting the continued shift of advertising budgets from traditional media to digital platforms. Businesses across sectors are increasingly relying on digital channels to reach audiences more efficiently and track return on investment.
Digital advertising spans multiple formats, including search, social media, display, video, and mobile advertising, each offering distinct advantages in terms of reach, engagement, and targeting. The study notes that advertisers are tailoring campaigns based on platform strengths and audience behaviour.
By industry, major adopters include retail, healthcare, banking and financial services (BFSI), automotive, and entertainment, where digital campaigns are increasingly customised to consumer preferences and demand patterns.
The market continues to be dominated by major technology companies such as Google, Meta (Facebook), Amazon, Microsoft, and TikTok, which benefit from large user bases, advanced data capabilities, and integrated advertising ecosystems. Other players, including Adobe, X (formerly Twitter), Snapchat, and Pinterest, remain active in areas such as programmatic advertising, creative tools, and influencer-led campaigns.
MRFR identifies smartphone usage, high-speed internet access, and the growth of social media and video streaming platforms as key growth drivers. The use of data analytics and artificial intelligence has further improved ad targeting and campaign performance, particularly in mobile and video advertising.
However, the report also highlights challenges, including ad fraud, privacy concerns, ad-blocker adoption, and stricter regulations such as GDPR and CCPA. Rising advertising costs and intense competition may limit access for smaller businesses.
Emerging trends shaping the sector include programmatic advertising, AI-driven optimisation, influencer marketing, short-form video content, and immersive formats such as AR and VR.
Regionally, North America leads the market due to strong digital infrastructure and platform dominance, while Asia-Pacific is expected to witness rapid growth, driven by expanding smartphone use, e-commerce, and social media adoption. Europe continues to grow steadily under a more regulated digital advertising environment.
