There’s no question about the influence of social media and its power to grow a business. When we look at the hard numbers, the social media ad spend in the US says it all.

In 2023, the total social media advertising spending by US companies is expected at just over $94.4 billion. This represents a 17 percent increase from 2022 and a deceleration in its growth rate from the previous year. 

US social media spending has been increasing over the past few years, recording a 28.2 percent average annual growth from 2018 to 2023. 

All signs point to further—albeit slower—growth in social media ad spend in the coming years. Expenditure is expected to breach the $100 billion mark in 2024 before further rising to $114 billion by 2025. By 2026, it’s projected to hit $122.2 billion, and is set to continue to increase to $130.5 billion in 2027. In the four-year period from 2024 until then, however, average annual growth rates are forecast to slow to 8.5 percent.

From 2017 to 2026, the biggest year-over-year growth rate came in 2018, when social media ad spend increased by a whopping 38.3 percent. In contrast, a 6.8 percent annual increase is projected for 2027.

Despite the slowdown, the increase in social media ad spending will be nothing short of impressive. In just a decade, the total expenditure on social media will have grown more than six-fold.

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Social Media Ad Spend: Time Spent on Platforms

With 4.89 billion social media users around the world in 2023 (and growing), it’s no wonder brands are investing more and more in social media advertising.

Plus, the amount of time US consumers are spending on social media has also been increasing. This translates to higher chances of getting eyes on your social media ads. As of Q2 2020, the average internet user spent two hours and 28 minutes a day on social media. 

Each US company’s social media ad spend would vary according to its target market, business goals, and social media marketing budget. One of the biggest factors that will shape their social media spending is how much time users spend on each platform.

Here are the top five social media sites sorted by time spent:

  1. TikTok: 45.8 minutes per day
  2. YouTube: 45.6 minutes per day
  3. Twitter: 34.8 minutes per day
  4. Snapchat: 30.4 minutes per day
  5. Facebook and Instagram: 30.1 minutes per day

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