US digital advertising revenue reached a record $294.6 billion in 2025, up 13.9%, according to the IAB/PwC Internet Advertising Revenue Report, with social media ($117.7 billion) now slightly ahead of search ($114.2 billion). At the same time, 80% of marketers use AI for content creation (HubSpot State of Marketing 2026), and e-commerce made up 17.1% of US retail sales in Q2 2026 (US Census Bureau).
The 15 marketing statistics below cover ad spending by channel, e-commerce, AI adoption, search and social, email and local marketing. They are chosen for small business owners deciding where to spend limited time and budget, and each one is attributed to its original source with links at the end.
Updated October 2026.
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Key statistics at a glance
- US digital ad revenue reached $294.6 billion in 2025, up 13.9% (IAB/PwC, April 2026).
- Social media ad revenue grew 32.6% to $117.7 billion, the fastest of any channel (IAB/PwC).
- Retail and commerce media ad revenue reached $63.4 billion, up 18% (IAB/PwC).
- E-commerce was 17.1% of US retail sales in Q2 2026 (US Census Bureau).
- 80% of marketers use AI for content creation (HubSpot, 2026).
- 68.01% of US Google searches end without a click (SparkToro, 2026).
- Automated emails were 2% of sends but drove 30% of email revenue (Omnisend, 2025 data).
Where are businesses spending their marketing budgets?
1. US digital advertising revenue reached $294.6 billion in 2025
The IAB/PwC Internet Advertising Revenue Report: Full Year 2025, released April 16, 2026, puts US internet advertising revenue at $294.6 billion, a 13.9% increase and the highest level in the report’s 30-year history. Growth came despite 2025 having no Olympics, FIFA World Cup or major US elections, which usually lift ad spending.
2. Social media ad revenue grew 32.6% to $117.7 billion
Social media was the fastest-growing digital ad channel in 2025, according to IAB/PwC, with revenue up 32.6% to $117.7 billion. That puts social slightly ahead of search in the report’s channel breakdown, with IAB pointing to creator content and shopping features inside social apps as growth drivers.
| Channel | US ad revenue, 2025 | Growth vs 2024 |
|---|---|---|
| Social media | $117.7 billion | +32.6% |
| Search | $114.2 billion | +11.0% |
| Digital video | $78.0 billion | +25.4% |
| Commerce (retail) media | $63.4 billion | +18.0% |
| Podcast | $2.9 billion | +17.6% |
Source: IAB/PwC Internet Advertising Revenue Report, Full Year 2025. Channels overlap, so they do not add up to the total.
3. Search advertising grew 11% to $114.2 billion
Search advertising revenue grew 11% to $114.2 billion in 2025, a clear slowdown from 15.9% growth in 2024, according to IAB/PwC. Search is still the channel where buyers show the most intent, but AI answers are changing how people search and click.
4. Retail and commerce media ad revenue reached $63.4 billion
Commerce media, meaning ads sold by retailers and marketplaces such as Amazon and Walmart on their own sites and apps, grew 18% to $63.4 billion in 2025, according to IAB/PwC. For product brands, marketplace advertising is now a core channel rather than an experiment.
5. Creator advertising spending reached $37 billion
The IAB/PwC report estimates creator advertising spend at $37 billion in 2025. Sponsored content from independent creators on YouTube, Instagram, TikTok and podcasts is now a major budget line alongside traditional platform ads.
6. Digital video advertising grew 25.4% to $78 billion
IAB/PwC reports that US digital video ad revenue grew 25.4% to $78 billion in 2025, including connected TV and online video platforms. Short-form and creator video now sit alongside streaming TV ads in many media plans, and smaller brands can buy video ads on YouTube and social platforms with modest budgets.
7. 87.49% of brands expect their influencer marketing budget to rise
In Influencer Marketing Hub’s Benchmark Report 2026 (May 2026, 600+ respondents), 87.49% of respondents expect their influencer budget to increase, and only 5.55% expect a decrease. Only 10.56% say they do not use AI in influencer marketing; finding creators is the most common AI use (36.67%).
E-commerce marketing statistics
8. E-commerce made up 17.1% of US retail sales in Q2 2026
The US Census Bureau’s quarterly e-commerce report (August 18, 2026) estimates seasonally adjusted US retail e-commerce sales of $340.2 billion in Q2 2026, up 12.2% year over year and 17.1% of total retail sales. Online sales are growing several times faster than retail overall, so even local stores benefit from being shoppable online.
9. Meta’s average price per ad rose 12% year over year
Meta’s Q2 2026 results show the average price per ad on Facebook, Instagram and its other apps rose 12% year over year, while ad impressions grew 14%. Paid social is getting more expensive, which raises the value of organic content, email lists and repeat customers.
AI marketing statistics
10. 80% of marketers use AI for content creation
HubSpot’s 2026 State of Marketing Report finds 80% of marketers use AI for content creation and 75% use it for media production. AI is now a standard part of the marketing workflow rather than a test project.
11. 61% of marketers say AI is causing marketing’s biggest disruption in 20 years
According to the same HubSpot report, 61% of marketers believe marketing is experiencing its biggest disruption in 20 years because of AI. The disruption affects both how content is produced and how customers find it, through AI search and chat assistants.
12. AI search visitors are worth 4.4 times traditional organic visitors
Semrush’s July 2025 study found the average visitor from AI search is 4.4 times as valuable as a traditional organic visitor, based on conversion rates. Semrush projects that AI search could send more visitors than traditional search for marketing topics by early 2028.
Search, email and local marketing statistics
13. 68.01% of US Google searches end without a click
SparkToro’s 2026 study of US Similarweb clickstream data found 68.01% of Google searches from January to April 2026 ended without a click, up from 60.45% in 2024. Organic search still matters, but marketers should expect fewer clicks per ranking and invest in brand searches. See our SEO statistics for more.
14. Automated emails are 2% of sends but drive 30% of email revenue
Omnisend’s 2026 report, based on 2025 data from its e-commerce customers, found automated emails (welcome series, abandoned cart and similar flows) made up just 2% of email sends but generated 30% of email revenue, earning 16 times more per send than scheduled campaigns. More in our email statistics.
15. 97% of consumers read online reviews for local businesses
BrightLocal’s Local Consumer Review Survey 2026 found 97% of US consumers read reviews when choosing a local business, and 45% now use ChatGPT or other AI tools for local recommendations, up from 6% in 2025. For local businesses, reviews and accurate listings are among the cheapest and most effective marketing assets.
What do these marketing statistics mean for your business?
Budgets are moving toward social, video, retail media and creators, while AI is reshaping both content production and search. For a small business, the practical takeaways are to build owned channels (website, email list, reviews) that do not get more expensive every quarter, use AI to produce more content without lowering quality, and test social and creator partnerships with clear tracking.
Strong marketing starts with a name people remember and can find. Use the business name generator or brand name generator for ideas, then check the domain and social handles with namechk. For channel-level detail, see our content marketing statistics.
How we compiled these statistics
We used primary, dated sources: the IAB/PwC Internet Advertising Revenue Report, the US Census Bureau, Meta’s investor release, and published 2025-2026 research from HubSpot, Semrush, SparkToro, Omnisend, BrightLocal and Influencer Marketing Hub. Vendor surveys reflect their respondents and customers, so we name the source for each figure. All data is as of October 2026.
FAQs
How much do US businesses spend on digital advertising?
US internet advertising revenue reached $294.6 billion in 2025, up 13.9% from 2024, according to the IAB/PwC Internet Advertising Revenue Report released in April 2026. Social media ($117.7 billion) and search ($114.2 billion) are the two largest channels, followed by digital video ($78 billion) and commerce media ($63.4 billion).
What is the fastest-growing marketing channel?
Social media advertising grew fastest in 2025, rising 32.6% to $117.7 billion in the US, according to IAB/PwC. Digital video grew 25.4% and commerce media 18%. Creator advertising, estimated at $37 billion, is also growing quickly, and 87.49% of respondents in Influencer Marketing Hub’s 2026 survey expect influencer budgets to rise.
How many marketers use AI?
Most do. HubSpot’s 2026 State of Marketing Report found 80% of marketers use AI for content creation and 75% use it for media production. In influencer marketing, only 10.56% of respondents to Influencer Marketing Hub’s 2026 survey said they do not use AI at all.
What share of retail sales happens online?
E-commerce accounted for 17.1% of total US retail sales in Q2 2026, according to the US Census Bureau. Seasonally adjusted online sales reached $340.2 billion in the quarter, up 12.2% from a year earlier, so online sales continue to grow much faster than retail as a whole.
Which marketing channel is best for a small business?
It depends on the business, but owned channels usually pay off first. Reviews matter for local businesses, since 97% of consumers read them (BrightLocal, 2026). Email automations deliver outsized returns, driving 30% of email revenue from 2% of sends (Omnisend). Paid social works but is getting pricier, with Meta’s price per ad up 12%.
Is SEO still a good marketing investment?
Yes, with adjusted expectations. SparkToro found 68.01% of US Google searches end without a click, so informational traffic is harder to win. But visitors from AI search convert at 4.4 times the value of traditional organic visitors (Semrush), and branded and commercial searches still drive valuable clicks.
Sources
- IAB/PwC Internet Advertising Revenue Report, Full Year 2025 (April 16, 2026)
- US Census Bureau: Quarterly Retail E-Commerce Sales, Q2 2026
- HubSpot: The 2026 State of Marketing Report
- Meta: Second Quarter 2026 Results (July 29, 2026)
- Semrush: AI search SEO traffic study (July 21, 2025)
- Influencer Marketing Hub: Influencer Marketing Benchmark Report 2026 (May 4, 2026)
- SparkToro: In 2026, less than one third of Google searches still send a click (June 9, 2026)
- Omnisend: Email marketing statistics (January 30, 2026)
- BrightLocal: Local Consumer Review Survey 2026
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