Advertising

Overview

Advertising is a global industry centered around the paid promotion of products or services. It’s also a significant contributor to US GDP, with some estimates claiming it indirectly powers roughly 20% of US annual economic output. The average American is exposed to roughly 5,000 ad impressions per day.

Early advertisements date back to ancient Egyptian papyrus scrolls from about 5,000 years ago. Historically, marketers have run ads on the popular channels and platforms of their era. For instance, marketers began running TV ads in 1941, not long after household televisions became available.

From local newspapers to social media apps, advertisements are a major reason certain forms of media are free or inexpensive. However, the industry often employs psychological tactics designed to create a desire for products, leading to scrutiny over manipulative techniques.

As of 2025, roughly two-thirds of all US ad spend went to just five platforms: Google, Meta, Amazon, Microsoft, and TikTok. In recent years, the advertising industry—which is made up of a complex ecosystem of ad agencies, platforms, and other companies—has faced challenges surrounding data privacy, consumer trust, and the impact of artificial intelligence on creativity.

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