Online Advertising Statistics for 2023
Online advertising is an extensive component of every marketing strategy involving various digital channels to reach a specific target audience. Digital advertising has grown globally renowned for its ability to precisely target and track groups of users at a relatively affordable price tag.
Accordingly, advertising platforms comply with robust legal and ethical standards to avoid violating user privacy or misleading consumers. But what percentage of advertising is digital? How big is the online ads industry? And what is its growth and success rate worldwide?
The advertising and digital marketing facts provide insight into how the industry has evolved to help you develop successful strategies globally. As a result, the following article delves into the specific details and analytics that make a difference in a modern digital marketing solution.
Latest Online Advertising Statistics for 2023
Let’s build our way up to the advertising stats and get warmed up with an overall look at what this article provides in a bullet list.
Here is a peek at some vital advertising statistics for 2023:
- Search ad spending will continue to grow in the following years at a gradual pace to reach 136 billion dollars by 2026.
- 46% of page clicks go to the top three ads in Google search results, indicating a higher conversion rate and return on investment.
- People who click on PPC ads are 50% more likely to make a purchase than those who click on an organic Google search result.
- On average, small to mid-sized companies spend between $9000 and $10,000 monthly for a pay-per-click campaign.
- Four times as many users are more likely to click on search ads on Google than any other search engine.
- Mobile ad spending will continue to grow in the following years at a gradual pace to reach $400 billion by the end of 2024.
- 2% of global web traffic is generated from mobile phones, generating over half of all web traffic.
- Data indicates that the share of mobile in digital advertising is rapidly increasing, and 64% of all digital ad funds go to mobile.
- Social media is the most invested mobile ad section in 2023, with spending reaching 160 billion US dollars worldwide.
- More than 80% of internet consumers use smartphones and spend around five hours daily on mobile devices on average.
Impressive, right? Now let’s learn more in detail.
PPC Advertising Statistics
Pay-per-click (PPC) advertising is a world-class digital marketing strategy that places ads on SERPs and websites. But does it help?
Let’s take a look at some of the top PPC advertising statistics worldwide:
1. Search ad spending will continue to grow in the following years at a gradual pace to reach 136 billion dollars by 2026.
(Source: Statista)
The PPC method allows individuals and businesses to target specific words and user demographics, ensuring their ads are visible.
Accordingly, search ad spending will continue to grow in the following years at a gradual pace to reach 136 billion dollars by 2026.
2. 46% of page clicks go to the top three ads in Google search results, indicating a higher conversion rate and return on investment.
(Source: WebFX)
Regardless of how technical an average user is, they often click on the top results instead of scrolling further. But how does it affect businesses?
Accordingly, 46% of page clicks go to the top three ads in Google search results, indicating a higher conversion rate and return on investment.
3. Users who click on PPC ads are 50% more likely to make a purchase than those who click on an organic Google search result.
(Source: WebFX)
Although most users can’t tell the difference between paid and organic results, others behave differently once they get past the ads.
Accordingly, users who click on PPC ads are 50% more likely to make a purchase than those who click on an organic Google search result.
4. On average, small to mid-sized companies spend between $9000 and $10,000 monthly for a pay-per-click campaign.
(Source: WebFX)
PPC advertising is a popular choice for businesses looking to increase online reach, but it requires careful planning and management.
As a result, on average, small to mid-sized companies spend between $9000 and $10,000 monthly for a pay-per-click campaign.
5. Four times as many users are more likely to click on search ads on Google than any other search engine.
(Source: HubSpot)
Google has undoubtedly beaten the search engine competition to the ground, setting the rest of the competitors to the side.
As a result, four times as many users are more likely to open search ads on Google than any other search engine.
Mobile Advertising Statistics
Mobile advertising is another popular marketing approach that involves promoting products/services through mobile apps. But does it work?
Let’s take a look at some of the top mobile advertising stats worldwide:
6. Mobile ad spending will continue to grow in the following years at a gradual pace to reach $400 billion by the end of 2024.
(Source: Statista)
The mobile advertising industry is consistently growing and doesn’t seem to stop as our lives become more dependent on smartphones.
Accordingly, mobile ad spending will continue to grow in the following years at a gradual pace to reach $400 billion by the end of 2024.
7. 52.2% of global web traffic is generated from mobile phones, generating over half of all web traffic.
(Source: Statista)
The mobile-centered form of advertising has become increasingly popular as it conveniently reaches a massive range of users worldwide.
Accordingly, 52.2% of all website traffic is generated from mobile phones, conducting over half of all web traffic and leading to better ad targeting.
8. Data shows that the share of mobile in digital advertising is rapidly increasing, and 64% of all digital ad funds go to mobile today.
(Source: Statista)
But how often do businesses and marketers rely on mobile advertising? Does it replace the rest of the ad forms in the following future?
It could! Data indicates that the share of mobile in digital advertising is rapidly increasing, and 64% of all digital ad funds go to mobile today.
9. Social media is the most invested mobile ad section in 2023, with spending reaching 160 billion US dollars worldwide.
(Source: Statista)
Billions of people worldwide use social media channels like Instagram, Facebook, and TikTok to stay connected to one another.
As a result, social media has become the most invested mobile ad section in 2023, with spending reaching 160 billion US dollars worldwide.
10. More than 80% of internet consumers use smartphones and spend around five hours daily on mobile devices on average.
(Source: Smart Insights)
As mentioned in previous paragraphs, people have grown dependent on mobile devices and spend hours surfing the web and social communities.
Accordingly, more than 80% of internet users use smartphones and spend around five hours a day on mobile devices on average. Crazy, right?!
Video Advertising Statistics
Video ads are often on social media, websites, and streaming services and consist of pre-roll, mid-roll, or post-roll ads. But do they work?
Let’s take a look at the top video digital advertising statistics worldwide:
11. In 2020, the number of users watching digital videos online in the United States reached 244.4 million.
(Source: Business Insider)
The widespread availability of video content has made it a popular choice of entertainment among most people worldwide.
As a result, according to Business Insider, the number of users watching digital videos online in the United States reached 244.4 million in 2020.
12. 86% of marketing professionals utilized video advertising as a primary marketing tool in 2021.
(Source: Wyzowl)
Video advertising lets individuals and businesses deliver their message in a visually attractive approach, highly efficient in capturing user attention.
As a result, based on data from Wyzowl, 86% of marketing professionals utilized video advertising as a primary marketing tool in 2021.
13. 78% of marketing professionals claim video advertising has directly helped increase business sales online.
(Source: Wyzowl)
As previously mentioned, video advertising has become an integral part of modern marketing strategies, with stats growing over the roof.
Accordingly, 78% of marketing professionals claim video advertising has directly assisted them in increasing business sales online.
14. 66% of consumers say they pay more attention to short-form videos, which is 2.5 times more than long-form videos.
(Source: Sprout Social)
Short and long videos are both highly beneficial to marketing strategies but vary in results depending on the audience you wish to target.
But in general, 66% of consumers say they pay more attention to short-form videos, which is 2.5 times more than long-form videos.
15. 92% of video marketers in 2023 say video gives them a good ROI, which is 14% higher than five years ago.
(Source: Wyzowl)
Return on investment is a valid advertising tool to determine the efficiency of your assets and plan future steps in your marketing campaigns.
Accordingly, based on data from Wyzowl, 92% of video marketers in 2023 say video gives them a good ROI, which is 14% higher than five years ago.
Display Advertising Statistics
Display advertising is a cost-friendly marketing approach that allows professionals to target potential customers using banners and images.
Let’s take a look at the top display online advertising statistics worldwide:
16. When someone searches for something after initially seeing a display ad, the likelihood of them converting is 59%.
(Source: LocaliQ)
Display advertising effectively captures the attention of potential clients and increases brand awareness using attractive media content.
According to LocaliQ, when someone searches for something after initially seeing a display ad, the likelihood of them converting is 59%.
17. On average, a user’s search activity increases by 155% after being served online display advertising.
(Source: LocaliQ)
Display ads can target users according to their interests, demographics, and online behavior and is a popular approach for businesses of all sizes.
Based on data collected by LocaiQ, a user’s search activity increases by 155% after being served online display advertising on average.
18. Based on recent data, 27% of consumers start searching for a business after seeing their display advertisement.
(Source: LocaliQ)
A solid online presence allows businesses to create brand awareness and gain a robust advantage over others. But how do ads help?
Based on recent data from LocaliQ, 27% of consumers start searching for a business after seeing their display advertisement, which boosts brand awareness.
19. Digital display advertising is projected to grow at a 15.5% CAGR, while search advertising is projected to grow at 12.2%.
(Source: PR News)
As mentioned in previous paragraphs, display advertising is now an inseparable part of marketing campaigns and continues to grow yearly.
According to data from PR News, display advertising will grow at a 15.5% CAGR, while search advertising is projected to grow at 12.2%.
20. Professional advertisers spend over $50 million on programmatic digital display advertising online.
(Source: HubSpot)
Since the development of programmatic advertising, marketers can automate ad buying and placement, making it super convenient to run campaigns.
As a result, it’s no surprise that professional marketers spend over $50 million on programmatic digital display advertising online.
Influencer Advertising Statistics
Influencer marketing utilizes individuals who are experts in a particular niche and have access to a massive community of potential clients.
Let’s take a look at the top digital marketing facts by influencers:
21. According to surveys, 92% of people trust recommendations from other individuals over brand advertisements.
(Source: ION)
Originally, when businesses promote their products/services, they tend to drastically emphasize the advantages. But how does it affect anyone?
According to surveys, 92% of people trust recommendations from other individuals over brand advertisements, as they feel much more genuine.
22. 81% of marketers believe influencer advertising works as a primary approach to reach broad audiences on social media.
(Source: ION)
Partnering with specific influencers lets businesses leverage their reach and credibility to advertise their products/services to a broader audience.
As a result, 81% of marketers believe influencer advertising works as a primary approach to reaching broad audiences on social media.
23. Word-of-mouth advertising creates loyal customers 37% better than other online marketing methods.
(Source: ION)
Influencer marketing often generates a particular level of trust that gets facilitated through social media, online reviews, and testimonials.
According to ION, word-of-mouth advertising creates loyal customers 37% better than other online marketing methods.
24. The influencer marketing industry is set to grow to approximately $21.1 billion in 2023.
(Source: Influencer Marketing Hub)
Since the arrival of Covid, influencer marketing has rapidly grown as a practical approach for businesses to generate leads and gain credit online.
Based on data collected from 3500 marketing agencies, the influencer marketing industry aims to grow to approximately $21.1 billion in 2023.
25. 67% of the respondents who budget for influencer marketing intend to increase their marketing budget over 2023.
(Source: Influencer Marketing Hub)
As mentioned in previous paragraphs, influencer marketing is becoming more popular as experts become interested in the leverage it provides.
According to Influencer Marketing Hub, 67% of the respondents who budget for influencer marketing intend to increase their influencer marketing budget over 2023.
Social Media Advertising Statistics
Social media advertising utilizes digital channels like Facebook, Instagram, TikTok, and Twitter to reach users worldwide. But does it work?
Let’s take a look at statistics on advertising effectiveness on social media:
26. More than 4.74 billion people worldwide use social media, and in 2022, the number of social media users increased by 4.2%.
(Source: Hootsuite)
Social media has become a primary way of communication and provides businesses with the necessary tools to reach their target audience.
Accordingly, more than 4.74 billion people worldwide use social media, and in 2022, social media accounts increased by 4.2%.
27. In 2023, ad spending on social media channels is projected to reach more than $268 billion.
(Source: Statista)
Social media platforms rapidly grow in popularity, providing a decent community to engage with others and build a digital presence.
As a result, based on data from Statista, ad spending on social media channels is projected to reach over $268 billion in 2023.
28. By the end of 2022, the volume of social media advertising impressions was more than 30% higher than the previous year.
(Source: Statista)
The widespread use of social media networks has provided businesses with an ideal platform for reaching millions of people online.
Accordingly, by the end of 2022, social media advertising impressions were more than 30% higher than the previous year.
29. 61% of Instagram’s advertising audience is between 18 to 34, the perfect avenue for those reaching a Gen Z or Millennial audience.
(Source: Hootsuite)
Despite social media advantages, they come with particular limitations for many businesses. So, which industries find their target audience on IG?
61% of Instagram’s advertising audience is between 18 to 34, the perfect avenue for those reaching a Gen Z or Millennial audience.
30. The potential advertising audience for Facebook Reels is 697.1 million people, pointing to the massive leverage the platform offers.
(Source: Hootsuite)
Facebook has remained one of the most famous social media platforms, providing users with advanced utilities to communicate with one another.
Accordingly, the potential advertising audience for Facebook Reels is 697.1 million people, pointing to the massive leverage the platform offers.
Wrap Up
Now you know much more! Digital advertising statistics and its strategies play a necessary role in the success rate of any modern business.
Accordingly, analyzing the latest advertising data brings insights into how various digital channels affect sales and brand awareness worldwide.
As a result, businesses can better recognize their target audience and develop compelling campaigns using the proper tools and techniques.
So, keep up with the latest data, employ the best strategies, and remember it’s always worth investing in your brand’s popularity.
FAQs
What is the most significant advertising trend in 2023?
The top marketing strategy for 2023 will be one with integrated video and written content. According to Pringle, websites still need text content, but adding video to showcase products or services will help advertisers expand their reach to a broader audience.
What percentage of advertising is digital?
According to data from Statista, in 2022, online advertising accounted for 67% of total advertising revenue worldwide. The data is expected to reach 70% in 2024 and 73% in 2028.
Who is the most prominent digital advertiser?
Alphabet, the holding company of Google. According to data from BCC Research, Alphabet remains the leading company in online advertising by offering Google Search, YouTube, Google Ads, Google Cloud, Google Play, Google Maps, and Google AdMob.