The digital advertising market grew at a 2.2% annualized rate last year, up from a 1.9% pace in 2016, according the Interactive Advertising Bureau.
Digital advertising accounts for more than 40% of U.S. ad spending, up 8% from 2015, according research firm IDC.
Digital ad spending is expected to reach $2 trillion by 2021, according data compiled by Bloomberg.
“As consumers turn to social media and video-based ads, the opportunities for ad technology to grow are enormous,” said Josh Cohen, senior analyst at IDC’s Interactive Advertising Research Group.
“Advertisers will have to find new ways to leverage their existing infrastructure to serve ads, which can mean investing in new technologies, new distribution platforms, or even new revenue streams.”
IDC expects the growth in digital advertising will be driven primarily by mobile advertising, which is expected by the end of 2021 to reach more than $3 trillion in revenue.
The growth is driven by growth in mobile ads, according IDC, which are being delivered through apps and other online platforms.
IDC predicts mobile ad spending will grow from $2 billion last year to $3.3 billion in 2021.
IDCs estimate that total ad spend will grow at a 5% annual rate through 2021.
In 2018, digital advertising accounted for 19.6% of the total ad market, a 1% increase from 2015.
IDPs digital ad spending increased 8.6%.
In 2018 digital advertising made up 18.7% of total advertising spending, a 2% increase over 2015.
The IDC report says digital advertising is the primary revenue stream for companies.
The digital ad market will grow between 8% and 12% annually through 2021, with revenue coming primarily from advertising delivered via mobile and social media.