In the second quarter of 2024, Sensor Tower reported that digital ad spending in the United States had exceeded $27 billion, marking a 15% year-over-year increase. This growth was fueled by substantial investments across mobile, desktop, and over-the-top (OTT) platforms, accumulating 3.3 trillion impressions. This surge was reflective of the broader trend in other markets, where digital ad spend also experienced healthy double-digit growth.
A significant portion of the digital ad spend in the United States was directed towards social ad channels, with platforms such as Facebook, Instagram, and TikTok accounting for over 76% of the total expenditure. This dominance of social networks represented a slight increase from the previous quarter. Facebook and Instagram alone constituted nearly half of the U.S. digital ad spend. Video advertising followed, making up almost 17% of the total spend, primarily driven by OTT platforms. New additions to Sensor Tower's ad channel coverage included LinkedIn and Pinterest, which together represented nearly 6% of the ad spend, with LinkedIn surpassing Snapchat and both outperforming X.
TikTok, despite trailing behind Meta's leading social apps, showed the highest year-over-year growth among social ad channels with a 28% increase. Meanwhile, display and video ad spend rose by 35%, largely attributed to desktop video ads. While OTT remained a popular channel, its growth rate lagged behind most social channels.
The shopping category maintained its position as the top segment by digital ad spend in the United States, totaling over $5 billion. However, this figure showed a slight decline from the previous year. In contrast, the financial services and software categories demonstrated the fastest growth rates. Financial services, buoyed by substantial investments from insurance companies like Liberty Mutual and Progressive, experienced nearly 50% year-over-year growth. The software category also saw notable contributions from advertisers such as Adobe Creative Cloud, Shopify, and Grammarly.
The quarter also witnessed notable shifts among top advertisers. Procter & Gamble and Amazon.com retained their positions as the top advertisers by digital ad spend, with Expedia moving up to third place. Procter & Gamble increased its spending on Pampers, while Expedia focused more on its main brand rather than VRBO. Five new advertisers broke into the top 10, with Kenvue leading the charge by concentrating its efforts on promoting skincare products and medications. This shift underscored the dynamic nature of the digital advertising landscape, where strategic adjustments and market responsiveness are crucial for maintaining and enhancing ad spend effectiveness.
The findings presented by Sensor Tower for Q2 2024 underscore the evolving dynamics of the digital advertising landscape. The remarkable growth in digital ad spend, particularly within social channels and video platforms, highlights the shifting priorities of advertisers aiming to capture diverse audiences across multiple formats. The rise of new advertisers and categories, alongside the strategic maneuvers of established brands, points to a competitive and innovative market. As the year progresses, it will be interesting to observe how these trends continue to develop and what new strategies will emerge in the world of digital advertising.
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