America’s Advertising Spend – Who & Where

America’s Advertising Spend – Who & Where

As the Internet lifeblood, advertising revenues support a diverse ecosystem of content creation, pretty much everywhere in the world wide web. As part of this ecosystem, we at AppLixir do get interesting insights about who is spending how much and which Ad medium has the most share etc. …

This blog post aims to explore how these Ad revenues are distributed across various mediums and advertisers in the United States. With the advertising landscape becoming increasingly complex and fragmented, understanding where and how advertising dollars are allocated is more important than ever. We will dissect the current state of advertising spend, identify key trends and players, and examine the implications of these patterns for the future of media and advertising.

Largest advertisers in the United States in 2022

Continuing on my “America’s Advertising Spend – Who & Where’ post, In 2022, Amazon set the benchmark as the United States’ leading advertiser by allocating an estimated $13.5 billion to its advertising efforts. This substantial investment underscores the tech giant’s strategy to leverage advertising not just as a means to promote its vast array of products and services, ranging from e-commerce to cloud computing and entertainment, but also to sustain its dominant market position and facilitate growth across its diverse business units.

Following Amazon in the realm of substantial advertising spend were other prominent companies, each with significant contributions to their respective industries:

  • Comcast: Comcast is well-known for broadband and cable. It also owns NBCUniversal, which means it’s big in media and entertainment. The company spends a lot on ads to stay on top in the tough telecom and entertainment markets.
  • Procter & Gamble (P&G): P&G is a major company selling many products like soap, cleaners, and diapers. They spend heavily on ads to stand out in a market full of competing brands.
  • Walt Disney: Disney owns theme parks, movie studios, and TV networks. They invest in ads to promote their many services, boost their brand, and draw people to their entertainment venues.
  • Alphabet (Google): Alphabet, Google’s parent company, operates in many areas from search to cloud services. They use advertising to keep Google visible and ahead in the competitive online ad space.

Share of advertising revenue by medium – United States in 2022,

Continuing on my “America’s Advertising Spend – Who & Where’ post, In 2022, digital platforms dominated the advertising revenue in the U.S. It accounted for 61% of the total Ad spend. Television and video came in second, with 21.4% of the revenue. Audio advertising made up 4.7%, while direct mail was close behind at 4.2%. Magazine advertisements represented 3.3% of the revenue, slightly more than newspapers at 2.7%. Outdoor advertising comprised 2.3%. The least revenue came from directories and cinema, at 0.3% and 0.2%, respectively. This distribution underscores the significant lead of digital advertising in the market. The main ones are –

  • Digital pure-play: This includes all forms of online advertising. It includes search engine ads, social media, Rewarded Video ads, and other forms of digital content. It is the most significant source of ad revenue due to the vast reach and targeted capabilities of digital platforms.
  • TV/video: This encompasses traditional television commercials as well as advertisements on streaming platforms and online video services. It remains a significant medium due to its broad audience and the effectiveness of video content.
  • Audio: This category includes radio advertisements, podcasts, and streaming audio services. It targets listeners with audio messages.
  • Direct mail: Advertisements sent directly to a consumer’s mailbox, such as catalogs, brochures, or flyers. It is a direct marketing strategy that can be personalized and is tangible for the recipient.