US digital ad spending is shifting towards more dynamic and measurable channels. According to Emarketer’s ‘Fastest-growing digital segments 2025–2027’ study, three areas will see big growth: Retail Media, social media, and Connected TV (CTV). These channels are expected to see double-digit increases as brands move away from traditional formats.
Big Players and Niche Platforms
Google, Meta, and Amazon will still dominate the market, but niche and mid-sized platforms will see the biggest gains in users and market share. Reddit, Peacock, and iHeartRadio are expected to lead the way. Reddit’s user base is projected to grow 6.5% to 74.3 million by 2027.
Other social media platforms, including TikTok, Instagram, LinkedIn, and Snapchat, will also see user growth, though at a slower pace. TikTok is expected to reach 127.4 million users, while Instagram will hit 159.8 million.
CTV and Retail Media Lead Ad Spending
Retail Media ad spending will be a major growth driver, increasing 15.8% to $81.5 million by 2027. Social media ad spending will rise 12.3% to $129.8 million, and CTV ad spending will grow 13% to $42.7 million.
Walmart, TikTok, and Reddit will lead the way in ad spending growth. Walmart’s ad spending is expected to rise 21.9% to $7.4 million, while TikTok’s will increase 21.3% to $21.7 million. Reddit’s ad spending will grow 20.5% to $1.7 million.
Digital Consumption Trends
People will spend more time on connected video platforms. Average daily CTV time is expected to rise from 2 hours and 29 minutes to 2 hours and 37 minutes by 2026, a 5.6% annual growth rate. Mobile device usage will grow at a slower 1.1% rate, reaching 4 hours and 6 minutes daily.
Video and digital audio platforms will see steady growth, while traditional social media and gaming formats will stabilize. The study highlights the ongoing shift towards more dynamic digital channels.