Social media is now the biggest platform for advertising worldwide, surpassing paid search. It is expected to reach $247.3 billion in 2024, with a 14.3% increase each year.
Meta is set to outpace traditional TV in ad revenue by 2025. In the UK, social media ad spending grew by 15.6% in 2023 and is projected to reach $8.8 billion in 2025.
This growth is mainly due to increased investment in social video formats, which saw a 20% rise from last year according to IAB UK.
Users are also spending more time on social media platforms, with daily usage increasing from an average of 95 minutes in 2014 to 152 minutes in 2024 according to GWI data.
Meta’s renaissance
Alex Brownsell from WARC Media mentioned that social media’s success is largely due to Meta’s impressive comeback.
Meta is expected to make $155.6 billion in ad revenue this year, making up 63.0% of global social spending. Both Facebook and Instagram saw over 20% growth in the first quarter of 2024, thanks to investments from Chinese exporters and the popularity of their AI tools.
Advertisers are increasingly using Meta’s Advantage tool for creative and media planning. In late 2023, Meta increased its ad load to 19.1%, with most Reels sessions now featuring seven or more ads.
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Despite its dominance, challenges like higher ad loads and the impact of AI on media planning are emerging, according to Brownsell.
Other platforms
Brownsell mentioned that social media is still a big player in advertising budgets, with TikTok seeing slower growth and Snapchat and Pinterest returning to double-digit revenue increases.
WARC Media predicts TikTok will make $23.1bn this year, but growth is slowing due to potential US bans. Despite adding new ad options, TikTok’s revenue growth dropped from 87.8% to 18.3% year-on-year.
Pinterest’s ad revenue is expected to rise by 17.3% in 2024, while Snapchat’s is forecasted to grow by 13.7%.
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WARC credits the platforms’ success to focusing on their strengths.
On the flip side, Twitter X continues its decline after a tough 2023, with a global drop of 6.4% predicted for 2024 – an improvement from the previous year’s massive decrease of 46.4%.
