The US travel sector is on its way to fully recovering from the pandemic-driven trough of 2020, and with it has come to a comeback to marketing expenditure. Last year, travel industry participants increased their digital ad spending by 42.7%, and we anticipate a 22.5% increase this year. Travel will expend more money next year than any other vertical we track.
Although it was prompted by a precipitous collapse, no other industry will experience growth comparable to what we anticipate for travel through 2024. Every industry increased spending significantly last year, including tourism, but most of the others are now returning to earth. Nationally, digital ad expenditure is predicted to climb 17.8% this year and 14.2% next year. Travel will exceed those averages by a wide extent, outperforming any other group. Travel will continue to lead the country in ad expenditure increase in 2024.
However, travel’s percentage of national spending will remain far lower than it was previously. In 2020, the industry lost significant importance in the digital ad expenditure market, contributing only 2.0% of ad dollars, down from 4.6% in 2019. Its percentage of total spending will gradually increase in the future years, but it will remain by far the smallest participant among all the industries we watch.
Nonetheless, the rate of rising in travel will virtually lead the group this year before jumping to the top of the pack next year. Only the retail business is anticipated to grow faster than travel expenditure in 2022. By next year, travel will be the only group that has increased its spending by at least 20%.