Facebook to reach $100 billion in ad revenue by 2024, powered by AI

Facebook will exceed the 100 billion dollars in advertising revenue in 2024, a milestone that the platform reaches thanks to the promotion of artificial intelligence and Retail, as well as its ability to win over Generation Z, as indicated in the latest report from WARC.

As a pioneer of social networks, Facebook has been able to adapt to the changing trends of the digital advertising ecosystem over the last two decades. The platform remains today as one of the great players of the sector.

In this way, Facebook seeks to strengthen its relationship with advertisers based on three key pillars: investment, consumption and performance. In the words of Alex Brownsell, content director at WARC Media, and author of the study: “in this WARC Media report, we break down the advertising revenue and user behavior trends of its parent company, Meta, and explore the platform’s resurgence in its quest to conquer to Generation Z.

1) Investment: Facebook will reach $100 billion in advertising revenue

Although Meta does not break down revenue by platform, WARC Media forecasts indicate that In the third quarter of the year, Facebook will achieve growth in advertising revenue of 13.2% year-on-year. Although it is a slower growth than that of its Target matrix (19.0%), the forecasts are positive, and The platform would reach $112.8 billion in 2026.

But, Facebook’s share of the global social media market is decreasingin 2013, almost nine out of every ten social media advertising dollars went to this social network (88.9%). By 2025, advertising spending on Facebook will have been reduced by half, to 38.2%, while Instagram and TikTok, in particular, they would catch up to him quickly.

Innovation in key sections such as artificial intelligence and Retail attracts retailers to increase their advertising investment on Facebook, an expense that will increase to $20 billion this year, according to Meta forecasts. WARC analyzes highlight that Asian brands are investing heavily in Meta’s advertising platforms, including Facebook, but are targeting users in other regions. This is a trend that has accelerated in the last 12 months.

Facebook slows down in the US, but Instagram will grow

In the United States, spending is expected to grow to $39.5 billion in 2024, 11.6% more year-on-year. However, advertising revenue growth will slow substantially in 2025 and 2026, according to the latest forecasts from WARC Media.

This data contrasts strongly with Instagramwhich is expected to achieve growth close to 20% in the next two years. But while Facebook’s growth has slowed, its advertising business is still twice the size of the US OTT market, four times that of TikTok and accounts for a 29% share of US retailers’ spending, according to Sensor Tower.

2) Consumption: the platform’s global advertising audience exceeds 2.2 million

Facebook is one of the most popular digital platforms in the world, with a global advertising audience of 2.2 billion, it also boasts approximately 3 billion monthly users on its platform.

More than three-quarters of American adults use Facebookand nine out of ten Americans use it to keep up with friends and family. However, Facebook has long faced stereotypes of being an “aging platform”, being relegated by alternatives such as Instagram, TikTok and Snapchat before Generation Z users in the United States.

In order to attract Gen Z and grow long-term, Facebook is prioritizing creators, groups (for communities and information), long-form videos (like Stories and Reels), trying to keep news and political content.

3) Performance: how AI could be the key to the future of Facebook

Trust is a key criterion for advertising investment in the era of algorithms. According to a survey conducted by Kantar of marketing professionals about the reliability of their data, Facebook obtained a very high score, only surpassed by Googleowned by Alphabet, and YouTube.

More than one million advertisers used Meta’s AI tools in the last month. The company’s goal is for advertisers to develop a relationship of trust with its AI tools to catapult their campaigns. According to the company, brands that used its image generation tool experienced a 7% increase in conversions.