The global digital advertising market is poised for sustained growth over the next decade, with spending projected to nearly double to $819.51 billion by 2031, according to a new report published by ResearchAndMarkets.com. The market is expected to expand from $414.52 billion in 2025, growing at a compound annual growth rate (CAGR) of 12.03%.
The forecast highlights the deepening role of digital platforms in global marketing strategies, even as advertisers navigate increasing privacy regulations, reduced data visibility, and changes in measurement practices.
Digital advertising continues to benefit from long-term shifts in consumer behaviour, driven by widespread smartphone adoption, high-speed internet access, and the rapid expansion of e-commerce. Search engines, social media platforms, websites and mobile applications now dominate brand discovery and consumer engagement, prompting advertisers to shift budgets away from traditional media towards digital channels that offer measurable performance and real-time insights.
Despite regulatory pressures, the sector has shown financial resilience. The Interactive Advertising Bureau (IAB) reported that internet advertising revenues in the United States rose 14.9% in 2024 to a record $258.6 billion, underlining advertisers’ continued reliance on digital formats.
Social media platforms remain a major driver of growth, supported by high-engagement formats such as short-form video and creator-led content. Influencer marketing has become a core strategy for many brands, enabling them to reach audiences through trusted voices and personalised storytelling.
This trend is reflected in platform earnings. Meta reported a 19% year-on-year increase in advertising revenue to $39.9 billion in the third quarter of 2024, reinforcing the central role of social platforms in global ad spending.
Retail media networks are also gaining prominence as privacy concerns reshape targeting strategies. With the decline of third-party cookies, advertisers are increasingly turning to retailers that leverage first-party purchase data to offer closed-loop measurement and clearer links between ad exposure and sales.
Amazon reported a 19% year-on-year rise in advertising services revenue to $14.3 billion in Q3 2024, highlighting the growing appeal of retail media as a privacy-compliant alternative. Industry forecasts from Dentsu indicate that digital channels accounted for nearly 60% of total global advertising spend in 2024.
At the same time, stricter privacy regulations have introduced challenges. The IAB found that 87% of advertisers reported higher costs in 2024 due to signal loss and regulatory compliance, affecting targeting precision and campaign efficiency.
Generative artificial intelligence is emerging as a key growth lever, enabling advertisers to produce and optimise creative content at scale. Alphabet reported a 10% year-on-year increase in advertising revenue to $65.9 billion in Q3 2024, partly driven by AI-powered tools.
Meanwhile, connected TV advertising continues to attract investment as audiences move away from linear television. The IAB estimates that CTV ad spend reached $22.7 billion in 2024, growing faster than the wider media market.
The report concludes that while the digital advertising market is set for continued expansion, future growth will depend on advertisers’ ability to balance innovation with privacy compliance in an increasingly constrained data environment.
