Key stat: US social network ad spend will reach $82.89 billion this year, according to our October 2023 forecast. That’s $7.81 billion higher than we projected in Q1 2023.

Beyond the chart:

• Social media advertising’s outlook is better than before, thanks to higher ad loads, a focus on lower-funnel ads, and an improved advertising economy.
• Some of this rosiness comes from Meta and TikTok, which have both been improving their ad businesses.
• But social media advertising isn’t totally out of the woods, as challenges related to challenges with user growth, time spent, and driving CPM growth for short-term videos persist.

Use this chart:

• Assess social media ad investments.
• Budget for 2025.

More like this:

• A guide to ad types on Meta
• What the past few months of TikTok trends teach us about marketing to Gen Z
• TikTok set to surpass Facebook in daily minutes by 2025—but ad spend hasn’t followed
• Instagram leads influencer marketing, even as marketers spread budgets across social channels