GAT: Meta on track to surpass all linear TV spend

In just a few years, ad revenues going to Meta – owner of Facebook, Instagram, and Whatsapp – could outgrow the entire global linear TV industry, based on current trajectories; the findings of a new Global Ad Trends report indicate changes to global advertising as social media stands to become the world’s largest ad channel.

WARC Media members can find the full report here

If you’re not yet subscribed to WARC Media, you can access a sample of the report here.

Why social’s supremacy matters

Global social spend is set to total $247.3bn in 2024, up 14.3% year on year, ahead of paid search. This could see it grow to become the biggest advertising channel by spend. 

But that’s a tussle among the new giants. Perhaps the more consequential shift is that on current trajectory, just the adspend going to Meta alone is set to earn more than the entire global linear TV industry. 

It’s a moment that would signal a changing of the guard, not only from old media to new, but from a significant plurality of companies making money from global ad growth to a consolidated market dominated by global tech players. 

What’s behind this

Both Facebook and Instagram grew by more than 20% year on year in Q1 2024, and Meta is forecast to earn $155.6bn in ad revenue this year.

• Tools like Meta’s Advantage+, which automates aspects of creative and media planning, are increasingly popular with advertisers. 
• Meta reportedly increased its ad load in Q4 2023 to 19.1%, with most Reels sessions now having seven or more ads.

Elsewhere in the market

• The +18.3% year-on-year increase forecast for TikTok in 2024 marks a significant slow-down from the 87.8% growth rate it clocked up last year, despite the introduction of new search and shopping ad formats. 
• 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%. 
• X’s ad revenue in 2024 is predicted to decline by 6.4% globally and 5.1% in the US – but this appears to be stabilising. 

Editor’s view

“Much of social media’s success has been driven by Meta’s remarkable renaissance. However, 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.

“However, with this dominance comes challenges, such as rising advertising loads in social environments, and the impact of AI on media planning. In this report, we take a holistic view of the global social media landscape, which shows no sign of losing momentum” – Alex Brownsell, Head of Content, WARC Media.