Daily Brief:
- Facebook’s global promoting revenue is forecast to surpass $100 billion in 2024, according to WARC Media’s latest “Platform Insights” report. If achieved, that will make the Meta-owned platform the second media brand after Google to exceed $100 billion in ad revenue.
- In the U.S., promoting spend on Facebook is forecast to reach $39.5 billion in 2024, an 11.6% year-over-year increase. Supporting the social media platform’s ad revenue growth are its investments in artificial intelligence (AI) and commerce.
- Still, Facebook’s share of the global social market is shrinking and is predicted to fall from nearly 89% in 2013 to 38.2% by 2025. A predicted slowdown in ad revenue growth for Facebook in 2025 and 2026 comes as Instagram is predicted to record near-20% growth.
Facebook is on target to achieve a serious feat this yr in surpassing $100 billion in global ad revenue, a milestone that will place it alongside Google because the only other media brand to have done so. The Meta-owned platform is one of the vital popular digital platforms in the world, WARC outlined, with 3 billion monthly users and a global promoting audience of two.2 billion.
Behind its growth are ongoing bets on commerce and AI. Meta has prioritized constructing out its Advantage+ suite of ad products, which depend on automation, and earlier this yr debuted image and text generators that might help produce creative content. Meta’s AI tools, like its Advantage+ Shopping Campaigns, have driven a 12% improvement in return-on-ad-spend (ROAS) in two years, per Meta research cited in the WARC report. Additionally, brands using Meta’s image generation tool are reporting a +7% increase in conversions, per the corporate.
Over 1,000,000 advertisers used Meta’s AI tools over the past month, per WARC, and investment by retailers is forecast to top $20 billion this yr. Brands from Asia are spending more on promoting on Meta platforms including Facebook, according to WARC, but they’re targeting users in other regions, a trend that has been growing over the past 12 months.
Meta grew revenue by 19% YoY to $40.59 billion in Q3, according to an earnings statement. While the corporate doesn’t split revenue by platform, WARC forecasts that Facebook’s Q3 ad revenue grew 13.2% YoY. By 2026, Facebook’s ad revenue is predicted to surpass $112.8 billion.
Still, Facebook’s ad revenue growth is predicted to slow in 2025 and 2026 as its share of the global social market dwindles. This comes as platforms like Instagram and ByteDance’s TikTok proceed to capture the eye of coveted audiences like Gen Z, though the latter is constant to battle a possible ban in the U.S. Though over three-quarters of U.S. adults use Facebook, per GWI, the platform trails behind platforms Instagram, TikTok and Snapchat in usage by Gen Z.
While Facebook is seeing slowed growth, its ads business remains to be twice the scale of the U.S. over-the-top market. It can be 4 times that of TikTok, per WARC, and the platform commands a 29% share of U.S. retailer spend, per Sensor Tower data cited in the report. In Q4, Meta expects revenue in the range of $45 billion to $48 billion.
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