Delhi: According to WARC Media's latest Global Advertising Trends report, Meta alone is on track to overtake linear TV in ad revenue in 2025.
It wrote that both Facebook and Instagram grew by more than 20% year-on-year in Q1 2024, and Meta is forecast to earn $155.6 billion in ad revenue this year, representing a 63.0% share of global social spending, fuelled by a wave of investment from Chinese exporters, and the popularity of its AI tools.
The report further stated that global social media spending is set to total $247.3 bn in 2024, up 14.3% year-on-year, a slight deceleration from +16.0% in 2023. Western platforms are growing fastest, fuelled by Chinese brands targeting US and European audiences.
WARC suggested that investment in AI has helped to drive incremental social spending. Tools like Meta’s Advantage+, which automate aspects of creative and media planning, are becoming increasingly popular with advertisers. However, some brands have complained of erosion to campaign efficiencies, it added.
The report also highlighted that Snapchat and Pinterest have returned to double-digit ad growth. 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,” stated WARC.
However, Twitter/X’s ad revenue woes are set to continue in 2024. X’s ad revenue in 2024 is predicted to decline by 6.4% globally and 5.1% in the US. However, compared to its startling 46.4% decrease in 2023, it marks something of a stabilisation for the Elon Musk-owned platform, largely due to political ad spend. However, marketers remain concerned with brand safety and X’s much-publicised issues with bots.
WARC pointed out that the ad loads are rising across social platforms. Meta reportedly increased its ad load in Q4 2023 to 19.1%, with most Reels sessions now having seven or more ads. Platforms are aiming to improve monetisation “efficiency” with new search and shopping ad formats.
More than 70% of consumers in Asian markets, including Indonesia and the Philippines, use social media across multiple stages of their buying journeys.
Data shows that social media users in APAC are 11.2% more likely than the global average to purchase a product or service on a weekly basis because of social media influencer endorsement.