U.S. digital ad spend hits $34 Billion in Q4 2024, generating 3.8 trillion impressions

According to Sensor Tower’s latest Digital Market Index report, the digital advertising market in the United States closed 2024 on a high note, with ad spending across mobile, desktop, and over-the-top (OTT) platforms reaching an impressive $34 billion in the fourth quarter. This surge, accompanied by 3.8 trillion ad impressions, marked a 9% year-over-year (YoY) increase from the $31.1 billion recorded in Q4 2023. The holiday season once again played a crucial role in driving ad investments, as brands capitalized on peak shopping demand.

Beyond the U.S., several international markets also experienced strong growth in digital advertising. Canada and France each saw a 10% YoY increase in ad spend, while the UK posted a 7% rise. The expansion of digital ad channels continues to vary by region, and two newly analyzed markets—Japan and South Korea—offer fresh insights into global trends.

Per the report, platforms like Facebook, Instagram, TikTok, and the newly included Reddit accounted for over 77% of digital ad spend in the U.S. during Q4. Retail media ad impressions also hit new highs, driven by strong advertising growth in Computers and Consumer Electronics, with retailers like Best Buy leading the charge.

The report also indicates that global in-app purchase (IAP) revenue across iOS and Google Play soared to $150 billion in 2024, with the final quarter alone contributing over $39 billion. The momentum in digital spending has continued to accelerate, with IAP revenue seeing a 13.5% year-over-year (YoY) increase in Q4. For the full year, total global IAP earnings rose by 12.5% compared to 2023, highlighting the growing consumer demand for premium content, subscriptions, and in-app purchases across mobile platforms.

The top 10 app categories all experienced double-digit revenue growth, with Productivity, Photo & Video, and Entertainment leading the way, surpassing 35% YoY gains. Pokémon TCG Pocket had a standout debut, ranking among the top 10 mobile games in both downloads and IAP revenue following its late-October release.