Facebook's advertising revenue is projected to surpass $100 billion in 2024, following a 13.2% year-over-year increase in Q3 2024. The platform, which boasts over 2.2 billion users globally, remains a dominant player in the digital advertising sector.
According to Warc Media, Facebook's ad income is anticipated to reach $100.1 billion this year, with forecasts suggesting $112.8 billion by 2026. Despite this growth, Facebook's market share in the social media advertising space is declining, down from 88.9% in 2013 to an expected 38.2% by 2025.
Investment from retailers in Facebook advertising is expected to hit $20 billion by 2024, driven by advancements in AI tools that enhance campaign performance. The Advantage+ Shopping Campaign, for instance, reportedly increased return on ad spend by 12% over two years.
In the U.S., Facebook advertising spending is projected to reach $39.5 billion in 2024, an 11.6% increase from the previous year. However, growth rates for ad income are expected to slow significantly in 2025 and 2026.
Meta's AI capabilities are increasingly utilized by advertisers, with over a million leveraging these tools to improve campaign effectiveness. The platform is shifting focus towards creators and long-form content to attract a younger audience, particularly Gen Z.