The Social Media Advertising Boom: Brands Invest $930 Billion Since 2017

In recent years, the social media advertising industry has experienced remarkable growth. It solidifies its position as the second-largest market in the digital advertising space. This surge can be attributed to the increasing number of social media users worldwide, estimated at a staggering 4.9 billion. With over 90% of marketers utilizing social media platforms to promote brands and engage with customers, it comes as no surprise that social media advertising has emerged as a dominant revenue stream within the digital advertising landscape.

Last year alone witnessed an impressive expenditure of $207 billion on social media ads by brands and companies. However, the cumulative data for the past six years paints an even more remarkable picture, revealing that brands have invested a staggering $930 billion in social media advertising since 2017, as reported by OnlyAccounts.io.

The Social Media Advertising Boom: Brands Invest $930 Billion Since 2017

A substantial driving force behind this growth is the influence of social media ads on consumer behaviour. A survey by Statista indicates that 75% of Gen Zers and nearly half of Millennials base their purchasing decisions on social media ads, prompting brands to continually allocate significant budgets to this form of advertising.

The annual spending on social media ads has experienced a quadrupling effect over the past six years. In 2017, brands spent $51.3 billion on social media ads. The subsequent years saw consistent growth, reaching $97.5 billion in 2019. The outbreak of the COVID-19 pandemic in 2020 accelerated this trend, with social media ad spending surging by almost $35 billion or 36.2% year-over-year to reach $132.8 billion. The momentum continued into 2021, witnessing an even more substantial growth of 36.3%, bringing the total spending to $180.9 billion.

Although growth rates moderated in 2022 and 2023, with increases of 4.7% and 9.3%, respectively, the total ad spending on social media still climbed by $26 billion, culminating in a total of $207.1 billion in 2023. Projections from Statista anticipate that brands will allocate nearly $220 billion to social media advertising in 2024, marking a staggering 330% increase from 2017.

US brands have invested an astounding $340 billion in social media ads since 2017

Mobile platforms continue to dominate the digital media advertising landscape, contributing to 83% of total ad spending in 2024, up from 70% six years ago. In contrast, desktop social media ads witnessed a decline in revenue share from 30% to 17% during this period. The overall market will grow at a Compound Annual Growth Rate (CAGR) of 3.8% over the next four years. It will reach a market volume of $255.8 billion by 2028.

In a global context, the United States emerges as the leading social media advertising market. US brands have invested an astounding $340 billion in social media ads since 2017. This figure surpasses the combined spending of Chinese and UK brands. The data also suggest that China is poised to overtake the US market, becoming the world’s largest social media ad spender in the next two years. Other significant players in the global social media advertising market include the UK, Japan, and Germany, contributing $46.6 billion, $44 billion, and $19.8 billion in total ad spending, respectively.

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