Targeted Advertising Statistics By Revenue, Consumer Perception and Challenges
Updated · Oct 24, 2024
WHAT WE HAVE ON THIS PAGE
- Introduction
- Editor’s Choice
- General Targeted Advertising Statistics
- What is Targeted Advertising?
- Target Advertising Spending Statistics
- Global Internet Advertising Statistics By Revenue
- Targeted Ad Spending Statistics By Countries
- Total Spending Statistics By In-App Advertising
- By Marketer’s Post Vs Consumer’s Needs
- Consumer Perception Statistics On Targeted Advertising
- Digital Ad Spending Statistics
- Total Media Ad Spending Statistics
- Statistics On Social Media Ad Revenue Growth
- Benefits Of Targeted Advertising
- Challenges In Targeted Advertising
- Key Demand-Influencing Factors In 2024
- Conclusion
Introduction
Targeted Advertising Statistics: Targeted advertising is a marketing strategy where ads are tailored to specific groups of people based on their interests, behaviors, demographics, or online activity. Instead of showing the same message to everyone, targeted ads aim to reach the right audience with relevant content. This makes the ads more likely to engage people and lead to sales.
However, there are challenges like privacy issues, changing regulations, and the need to keep up with shifting consumer preferences. To stay effective, companies must keep improving their targeting strategies. This article will guide you accordingly, as it includes several current trends and analyses from different insights of recent years.
Editor’s Choice
- The global targeted advertising market will reach around USD 213 billion by 2024, increased by 19.7% (USD 178 billion) in 2023.
- The top three ad spending platforms are Google, Meta, and Amazon; they are expected to account for 29.4%, 24.6%, and 13.9% of all targeted ad spending globally, respectively.
- Targeted Advertising Statistics show that targeted advertising campaigns saw an average CTR of 3.12% in 2024 and a 17% improvement compared to generic ads.
- Meanwhile, conversion rates for personalized ads reached an average of 9.8% in 2024, while non-targeted ads only had 5.4%.
- Digital ad spending is estimated to reach around USD 740.3 billion by 2024.
- Targeted ads generate approximately 97% of Facebook’s revenue, which will amount to approximately USD 130 billion.
- During the same duration, Google is expected to generate USD 232.5 billion from advertising, with targeted ads contributing 83% share of its total revenue.
- Targeted Advertising Statistics in 2024 show that Global companies spend approximately USD 300 billion per year on targeted ads.
- Moreover, targeted advertisements attracted 49% of social media users to purchase a product.
- By the end of 2026, the social media advertising budget will increase by 11.76%.
General Targeted Advertising Statistics
- As of 2024, programmatic ad spending, which automates the process of buying and selling ads, will account for 72.3% of all targeted digital ad spending.
- Mobile apps play a significant role in capturing user data, resulting in 67.9% of targeted ad spending being generated by mobile platforms.
- The United States, the largest social media ads market in the world, is projected to invest USD 88.3 billion in social media ad spending in 2024.
- Targeted Advertising Statistics in 2024 further states that targeted video ads will grow by 14.3%, with platforms like YouTube and TikTok leading the charge.
- The average Cost-per-Click (CPC) for targeted ads is projected to rise to USD 1.48 in 2024, a slight increase from USD 1.41 in 2023.
- Targeted advertising campaigns saw an average CTR of 3.12%.
- Moreover, 34% of internet users globally will use ad blockers in 2024, up by 31.9% from last year.
What is Targeted Advertising?
Targeted advertising means showing ads to specific groups of people. It works both online and offline in many industries. The main idea is to find your potential customers and group them based on certain characteristics.
Target Advertising Spending Statistics
(Reference: statista.com)
- In 2023, Target Corporation spent 1.4 billion U.S. dollars on advertising worldwide.
- In the last three years, their advertising costs have been 1.5 billion dollars each consecutively.
Global Internet Advertising Statistics By Revenue
(Reference: statista.com)
- In the fiscal year 2024, the global internet advertising revenue is supposed to be USD 562 billion.
- In coming years, the revenue rates are projected to be around 2025 (USD 599 billion), 2026 (USD 633 billion) and 2027 (USD 663 billion).
Targeted Ad Spending Statistics By Countries
- Targeted Advertising Statistics elaborates that the United States led in targeted ad spending, with USD 140 billion in 2024, with a growth rate of 11% from 2023.
- Emerging markets like India are experiencing significant growth, with a 20% increase in spending.
The table below shows the targeted ad spending by major countries in 2024:
| Country | Targeted Ad Spending (USD) | Growth Rate (YoY) |
| China | 100 billion | 15% |
| United Kingdom | 30 billion | 8% |
| Germany | 25 billion | 7% |
| Japan | 22 billion | 10% |
| India | 15 billion | 20% |
| Brazil | 10 billion | 12% |
| Canada | 9 billion | 9% |
| Australia | 7 billion | 6% |
| France | 6 billion | 5% |
Total Spending Statistics By In-App Advertising
(Reference: statista.com)
- A report published by Statista shows that in 2024, the social networking segment spent around USD 134.40 billion on advertising, followed by games (USD 106.50 billion), shopping (USD 33.82 billion), entertainment (USD 24.49 billion), and news and magazines (USD 12.83 billion).
Furthermore, other apps Ad Spending of 2024 are stated in the table below:
| In-Apps Names | Ad Spendings (USD billion) |
| Books & References | 5.02 |
| Business | 1.60 |
| Education | 3.76 |
| Finance | 1.36 |
| Food & Drink | 2.32 |
| Health & Fitness | 1.55 |
| Lifestyle | 2.04 |
| Medical | 0.83 |
| Music | 9.44 |
| Navigation | 1.00 |
| Photos & Video | 3.43 |
| Productivity | 1.79 |
| Sports | 1.28 |
| Travel | 1.21 |
| Utilities | 2.35 |
| Weather | 1.72 |
By Search Advertising
- Ad spending in the search advertising market will make up around USD 306.7 billion in 2024.
- It is projected to grow at an annual rate of 8.01% from 2024 to 2028, leading to a total market size of USD 417.4 billion by 2028.
- The United States is expected to have the highest ad spending by the end of the year, reaching USD 132.70 billion.
(Reference: statista.com)
- The above graph shows that the total advertisement spending in 2024 is segmented into Search Advertising Desktop and Search Advertising Mobile, resulting in USD 134.4 billion and USD 172.3 billion, respectively.
Social Media Advertising
- Targeted Advertising Statistics further reports that the total spending on social media ads will reach around USD 219.8 billion in 2024.
- Most ad spending will come from China in 2024, reaching about USD 81.36 billion.
(Reference: statista.com)
- According to Statista Market Insight, as of March 2024, ad spending is segmented into Social Media Advertising Desktop and Mobile, accounting for USD 38.3 billion and USD 181.5 billion, respectively.
By Digital Banner Advertising
(Reference: statista.com)
- Worldwide spending on digital banner ads is expected to be around USD 174.10 billion by the end of 2024.
- In addition, the market is estimated to grow at an annual rate of 5.49% from 2024 to 2029, resulting in USD 227.40 billion by 2029.
- In 2024, the United States will have the highest ad spending globally, with around USD 67.12 billion.
By Influencer Advertising
(Reference: statista.com)
- Targeted Advertising Statistics show that the influencer advertising market will reach USD 35.09 billion by 2024 and is estimated to grow by USD 56.28 billion by 2029.
- Meanwhile, by 2024, the average amount spent on influencer ads for each internet user will be USD 6.16.
- In the same year, China is anticipated to have the largest ad spending, reaching almost USD 19.16 billion.
By Digital Classifieds
- In 2024, the digital classified’s global ad spending will reach USD 21.66 billion, and the market volume is projected to account for USD 23.85 billion by the end of 2029.
- The annual growth rate of the market will grow at 1.95% CAGR from 2024 to 2029.
(Reference: statista.com)
- The above graph shows that in 2024, the average ad spending of the general classified will reach USD 6.10 billion, followed by real estate (USD 6.06 billion), jobs (USD 5.13 billion), and motor (USD 4.37 million).
- Similarly, the mobile and desktop Ad spending on digital classifieds will be USD 10.20 billion and USD 11.45 billion, respectively.
By Cinema Advertising
(Reference: statista.com)
- Cinema advertising spending will reach around USD 3.53 billion in 2024 and USD 4.90 billion by the end of 2029.
- Ad spending will grow by an average of 6.78% each year from 2024 to 2029.
- In 2024, the average ad spending per viewer in cinema advertising will be turned to USD 2.11.
By Retail Platform Advertising
(Reference: statista.com)
- Targeted Advertising Statistics show that by 2024, ad spending in the retail platform advertising market is estimated to be USD 167.20 billion.
- In contrast, by the end of 2029, ad spending will reach USD 350.10 billion, with a CAGR of 15.93%.
- The United States will lead global ad spending with USD 57.63 billion in 2024.
- In retail platform advertising, desktop and mobile ad spending will account for USD 78.66 billion and USD 88.51 billion, respectively.
By Marketer’s Post Vs Consumer’s Needs
- Targeted Advertising Statistics explained that 18% of marketers post content on social media, and almost 72% of consumers want effective discounts on several products and services.
Furthermore, the table below analyses all other social media content based on targeted advertising followed by marketer posts and consumer needs share in 2024:
| Social Media Contents Type | Consumer’s Need | Marketer’s Post |
| Showcase new products or services | 60% | 46% |
| Teach something | 59% | 61% |
| Posts that entertain | 56% | 47% |
| Posts that inspire | 49% | 53% |
| Announce what is happening at the company | 41% | 51% |
| tell a story | 37% | 58% |
| Reports a company’s personality | 23% | 44% |
| About the company’s employee | 13% | 24% |
| Partnership with influencers | 12% | 16% |
Consumer Perception Statistics On Targeted Advertising
(Reference: prnewswire.com)
- Promotional Sales and Incentives (15%): Many people look for special deals and discounts online to save money.
- Discovering New Brands (14%): Online shopping helps users find new brands that they might like.
- Personalized Recommendations (13%): People enjoy getting product or service suggestions tailored to their preferences.
- Finding Local Businesses (12%): Users often search online to locate nearby shops and services.
- Efficient Online Shopping (11%): Online platforms offer a quicker and easier way to shop compared to traditional methods.
Digital Ad Spending Statistics
(Source: emarketer.com)
- In the United States of America, digital ad spending will account for around USD 293.52 billion in 2024, decreasing by 11.2% from 2023.
- This represents 76.5% of total media ad spending.
Total Media Ad Spending Statistics
(Source: emarketer.com)
- Targeted Advertising Statistics also show that in 2024, total media advertisement spending in the U.S. will amount to USD 411.47 billion, with a change rate of 8.7%.
- In contrast, spending will reach up to USD 435.62 billion (5.9%) and USD 454.85 billion (4.4%) by 2025 and 2026, respectively.
Statistics On Social Media Ad Revenue Growth
TikTok leads the growth with an impressive 45%, indicating its rising influence in the digital marketing landscape.
| Company | Ad Revenue (USD billion) | YoY Growth Rate |
| Meta (Facebook) | 114 | 12% |
| Google (YouTube) | 38 | 10% |
| TikTok | 20 | 45% |
| 6 | 5% | |
| Snapchat | 5 | 15% |
Benefits Of Targeted Advertising
- 71% of customers prefer to deliver a higher level of personalization, which will increase digital marketing revenue by 15%.
- On the other hand, 44% of customers purchase repetitively from those businesses that use targeted advertising.
- Build brand awareness and improve how people see your brand by using clear messaging and consistent marketing efforts.
- Simplify marketing efforts and keep resources focused on growth to increase efficiency and drive business success.
- Increase your brand’s marketing ROI by using data-driven strategies that target specific audiences and reduce wasted spending.
- Around 47% of consumers reported feeling comfortable with receiving ads tailored to their preferences, and 27% still expressed privacy concerns.
Challenges In Targeted Advertising
- In 2024, almost 60% of consumers express concerns about data privacy.
- Around 45% of marketers report increased ad fatigue among users.
- 50% of marketers say their segmentation strategies could be more effective.
- On the other side, 70% of consumers change their preferences within six months.
- By 2024, the average cost-per-click (CPC) had increased by almost 30% compared to 2023.
- 35% of businesses report facing higher competition for ad space.
- Based on Targeted Advertising Statistics, 50% of advertisers struggle with changes to platform algorithms that affect reach.
- 40% of marketers need help to coordinate across multiple channels.
Key Demand-Influencing Factors In 2024
- Around 80% of consumers are more likely to buy from brands offering personalized ads.
- Meanwhile, 75% of companies use AI to improve ad targeting and audience segmentation.
- Mobile ad spend is expected to reach USD 400 billion globally in 2024.
- 63% of marketers report challenges in balancing ad targeting with privacy laws.
- E-commerce will account for 25% of total retail sales by 2024.
- Targeted Advertising Statistics further state that 70% of consumers change their brand preferences within six months.
- Globally, 5G will power 1.2 billion ad-enabled devices.
- Social media ad revenue is projected to hit USD 226 billion in 2024.
Conclusion
Targeted advertising has become an effective criterion of the modern marketing industry. These advertisements mainly help businesses reach specific audiences with personalized messages. They allow businesses to boost engagement and return on investment (ROI), but companies face challenges like data privacy rules, ad fatigue, and shifting consumer preferences.
This article on Targeted Advertising Statistics elaborated that businesses that are now using targeted advertising strategies will surely stay competitive and advanced in the fast-changing digital world. By using new technologies like 5G, augmented reality, and AI tools, companies can improve their ads while maintaining customer trust and following privacy laws.
Sources
FAQ.
Targeted advertising is possible due to data collection, user preferences, online behaviour tracking, and advanced algorithms analysing audience demographics.
This is very effective as it reaches specific audiences, increasing engagement and sales by showing relevant ads to users.
The future of targeted advertising will use more data, AI, and privacy measures, improving personalisation while protecting consumer information.
In 2024, companies like Google, Facebook, Amazon, and TikTok use targeted advertising to reach specific audiences effectively.
Saisuman is a professional content writer specializing in health, law, and space-related articles. Her experience includes designing featured articles for websites and newsletters, as well as conducting detailed research for medical professionals and researchers. Passionate about languages since childhood, Saisuman can read, write, and speak in five different languages. Her love for languages and reading inspired her to pursue a career in writing. Saisuman holds a Master's in Business Administration with a focus on Human Resources and has worked in a Human Resources firm for a year. She was previously associated with a French international company. In addition to writing, Saisuman enjoys traveling and singing classical songs in her leisure time.
