NEW YORK — With the Interactive Advertising Bureau (IAB)’s NewFronts event reaching its zenith today with presentations from some of the biggest digital and social media entities in the world at Convene in lower Manhattan, a fresh report from WARC Media published May 2 couldn’t be more timely — and concerning for broadcast media’s executive leadership.
Social media is now the leading media channel worldwide and is forecast to rise 14.3% year-over-year. With Meta presenting Thursday afternoon at the NewFronts, the Mark Zuckerberg-founded parent of Facebook, Instagram and Whatsapp is poised to attract marketers galore. And, WARC says, it’s now the biggest dollar-for-dollar competitor with TV.
Indeed, Meta alone is on track to overtake all global linear TV in ad revenue in 2025, as social media’s dollar forecast for 2024 is $247.3 billion on a global level.
In the U.S., social media advertising spend is set to reach $75.6 billion this year. Facebook remains the biggest player, forecast to reach $36.3 billion, followed by Instagram ($21.3 billion), and TikTok ($10.1 billion).
That was good enough to push social media, on a worldwide basis, ahead of paid search.
WARC’s findings come alongside fresh data from GWI that show time spent with social platforms has increased by 50% since 2014 — from an average daily consumption of 95 minutes to 152 minutes in 2024. According to data.ai, worldwide user numbers across social platforms have risen 169% since 2014.
Both Facebook and Instagram grew by more than 20% year-on-year in Q1 2024; Meta is forecast to earn $155.6 billion in ad revenue this year, representing a 63.0% share of global social spend.
While numerous platforms and apps may attract dollars and eyeballs, WARC Media Head of Content Alex Brownsell remarks, “Much of social media’s success has been driven by Meta’s remarkable renaissance.” That said, she adds, “social’s stronghold on budgets can also be seen in TikTok’s rise, and a return to double digit ad revenue growth at Snapchat and Pinterest.”
Pinterest is set to enjoy a 17.3% year-on-year increase in ad revenue in 2024, while Snapchat is forecast to grow 13.7%. “This strong growth of both platforms is attributed to a refocus and leaning into their respective strengths,” WARC Media says. Brand safety continues to cloud Elon Musk’s X (formerly Twitter) in the U.S., although political advertising could end the steep year-over-year decline in advertising for the social media platform.
With no signs of a momentum slowdown, Brownsell cautions social media that rising ad loads could present challenges. Already, some Facebook and Instagram user profiles are littered with suggested posts and paid content that often over-power posts from friends, leading to reduced time spent.
YUAN BIG QUEST FOR U.S. DOLLARS
When WARC Media looks at what’s fueling the big jump in global social spend, one thing stands out. And, it could attract Congressional attention, given the marching orders signed off by President Biden on TikTok, which must see a ByteDance move that removes any funding link to the Communist Party of the People’s Republic of China.
WARC data indicate Chinese brands targeting U.S. audiences, along with social media users in Europe, is fueling the rise. This includes “fast fashion” online retailer Shein and Temu, an online marketplace operated by the Chinese e-commerce company PDD Holdings.
