New data shows that the amount of advertising dollars spent on digital advertising in the United States increased for the first time in nearly two years.
The new figures show that digital marketing accounted for a total of $8.5 billion in ad spend in 2016, up from $6.6 billion in 2015.
The increase comes as the advertising industry has been looking for ways to diversify its advertising business, with advertisers looking to expand digital advertising beyond traditional media.
In the U.S., digital advertising spending increased for a third straight year in 2016 and 2016 saw its biggest growth rate since 2011, when digital advertising accounted for 22% of all ad spending, according to a report from ad agency and analytics firm Digital Analytics.
Digital marketing was responsible for 20% of advertising spend in 2017, up slightly from 17% in 2016.
The report, released by Digital Analytics, also shows that digital advertising spent in 2016 was $10.4 billion, a 1.4% increase from $9.3 billion in 2017.
While the digital advertising spend growth was smaller than the previous year, Digital Analytics says that the trend toward more digital advertising will continue.
“We expect digital advertising to be the dominant form of advertising over the next five years,” says Mark Wigfield, vice president of marketing at Digital Analytics in a statement.
“With the growing demand for digital advertising, we expect advertisers to continue to focus on digital marketing.”
While digital advertising has been growing for years, the report said that digital media spending has grown significantly over the past year.
“As advertisers increasingly invest in digital media, the number of ads that are purchased with ad-supported platforms has increased,” said Wigstein.
“That has led to a more intense and sustained investment in digital advertising.”
The report comes as advertisers have been looking to diversifying their advertising business by spending more money on digital media such as Facebook and Google Plus.
But while digital advertising still accounts for a large portion of advertising spending in the U to the tune of 19% of the U.’s ad spending in 2016 according to the AdAge research firm, digital media is growing faster than traditional media, which accounts for just 3% of ad spending.
According to AdAge, digital advertising was responsible to 21% of total ad spending last year, up 4% from 2016.