Ad spending for the US media and entertainment industries will increase every year through at least 2023. While growth rates, format mix, and device mix will vary as each industry faces different market dynamics, they both share a positive trajectory that reflects robust health in the overall digital ad market.
How large is the market for ad spending in the media and entertainment industries?
Digital ad spending by the media and entertainment industries will grow significantly through 2023, when media will reach $11.62 billion and entertainment $14.89 billion. Both industries grew their ad spending by double digits in 2021, despite lingering effects from the pandemic. Although media and entertainment share common characteristics and areas of overlap.
The pandemic clearly took a toll on spending. However, its effect was not as severe as we feared in March 2020, and the rebound has been stronger than anticipated across many industries, including media and entertainment. Media has been lifted by the resumption of TV production, which has given networks new content to advertise, while entertainment businesses including theme parks, movie theaters, and concert venues have restarted advertising after their pandemic-induced pauses.
