Mumbai: Social media giant Facebook is set to surpass $100 billion in global advertising revenue for the first time in 2024, solidifying its position as one of the leading platforms in the digital ad space. With a global advertising audience of 2.2 billion, Facebook remains the most-populous and best-monetized social media platform worldwide.
Despite facing increasing competition from platforms like Instagram and TikTok, Facebook’s growth has been propelled by innovative developments in artificial intelligence (AI) and commerce, which are attracting both established and emerging retailers. According to WARC Media, retailers are expected to invest a record $20 billion in Facebook advertising in 2024, with AI-driven tools like Advantage+ Shopping Campaign (ASC) contributing significantly to improved returns on ad spend (ROAS). Meta’s internal studies indicate that brands using AI tools such as Advantage+ have seen a 12% improvement in ROAS over the past two years.
Alex Brownsell, Head of Content, WARC Media, and author of the report, says: “In this WARC Media report, we prise apart Facebook’s latest advertising revenue and user behaviour trends from those of its Meta parent company, and explore the platform’s latest revival in its quest to win a new Gen Z audience.”
Facebook’s ability to generate robust revenue, even amidst declining market share, highlights the platform’s ongoing relevance. WARC Media forecasts that Facebook’s ad revenue will top $100.1 billion in 2024, with further growth to $112.8 billion by 2026. However, Facebook’s global share of social media ad spend has declined sharply, from 88.9% in 2013 to an expected 38.2% by 2025, as competitors like Instagram and TikTok rapidly gain ground.
While Facebook’s audience base remains vast, with more than three-quarters of U.S. adults using the platform, it faces a demographic challenge. The platform continues to struggle to engage Gen Z users, who are increasingly flocking to Instagram, TikTok, and Snapchat. To address this, Facebook is focusing on creators, long-form video content, and communities, while moving away from news and political content.
In terms of advertising performance, Facebook continues to be a trusted platform for advertisers, scoring highly in Kantar’s survey of global marketers on data trustworthiness. Meta’s AI tools, particularly Advantage+ Shopping Campaign and Image Generation, are helping advertisers achieve better targeting and creative optimization, resulting in increased conversions and more efficient ad spend.
With over a billion active users across its platforms, Facebook remains a dominant force in the global advertising ecosystem. As the platform continues to evolve, its ability to attract investments, particularly from retailers, will play a crucial role in shaping the future of digital advertising.
