With 75 percent of Gen Zers and more than 50% of Millennials having their purchasing decisions that are influenced by ads on social media and advertisements, it's no wonder that businesses and brands continue to pour cash into this type of marketing.

According to the data provided by OnlyAccounts.io The company has reported that brands around the world have spent an estimated $673 billion on advertising via social media over the last five years, and it keeps growing.

The Annual Social Media Ad Spending has Almost Tripled Since 2018

In the last decade, the social media platform has developed into a great marketing tool that provides a new method for businesses to advertise and reach their intended clients and audience. 

While it's costly and time-consuming as well as exposing you to criticism, companies continue to invest in advertising on social media, after investing billions of dollars in these ads.

According to a Statista study, brands spent $73.2bn on ads for social media in the year 2018. A year later the amount nearly tripled to $132.7bn. The data shows that 2021 witnessed the most significant growth in year-over-year terms of revenue, as it grew by 36% or close to $50 billion in the course of a year, to $180.9bn. Even though 2022 and 2023 experienced less growth and ad spending still topped the all-time record.

Statista estimates that brands will invest more than $207 billion on advertising via social media this year, which is nearly three times the amount of the year 2018. Furthermore, the total expenditure in the social media ad market is predicted to grow by an average of 4.5 percent between 2023 and 2027 which will result in a market size of $207.1bn.

More than 80% of the total advertising expenditure this year around $170.3bn is expected to be generated via mobile, a rise over $53.5bn from the previous year. Desktop ads will account for the remainder, with $36.7bn in total ad spending more than double the amount which was seen in the year.

Globally, the majority of ads, or $72.3bn come directly from the United States. Chinese brands come in close second to $71.3bn in total ad spend this year. United Kingdom, Japan, and Germany are next, having $9.7bn, $7.7bn, and $3.8bn and $3.8bn, respectively.

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Meta is the King of the Social Media Advertising Landscape with the Largest Market Share of 55%.

Even though Facebook has seen slower growth in active monthly members, Meta is still the most popular brand in the advertising world of social media. 

Based on Statista Advertising and Media Outlook, Meta had a massive market share of 55% in the year that ended last year, which is almost four times higher than LinkedIn the second-largest social media brand for advertising. Snapchat, Reddit, Pinterest, Twitter, and ByteDance all had 5 percent of worldwide social media advertising revenues.

Meta's dominance is set to continue this year as Facebook is home to over 2.72 billion users around the world 120 million, more than it did a year ago. All in all, Statista data show the users of Facebook and other social platforms are predicted to reach 4.9 billion by the end of this year which is up over 4.59 billion in 2022.