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.

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US social media advertising spending: 2017–2023

In 2023, total social media advertising spending by US companies is expected at just over $72.3 billion. This represents an 8.52% increase from 2022 and an acceleration in its growth rate from the previous year, when social media ad spend grew by 5.6%.

Despite the increases in 2022 and 2023, they mark a slowdown from earlier years. From 2018 to 2021, social media ad spend in the US rose by an average of 31.11% every year—nearly four times the growth rate expected this year. Taking 2022 and 2023 into calculation, the average annual growth from 2018 to 2023 falls to 23.09%.

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US social media advertising spending: 2014–2027

All signs point to further—albeit slower—growth in social media ad spend in the coming years. Expenditure is expected to inch upward by 5.63% in 2024, to $76.4 billion, before further rising by 4.27%, to $79.7 billion in 2025. By 2026, it’s projected to hit $82.5 billion, after a 3.6% annual increase. This is set to continue to increase by 3.37%, to $85.3 billion in 2027. In the four-year period from 2024 to 2027, average annual growth rates are forecast to slow to 4.22%.

From 2017 to 2027, the biggest year-over-year growth rate came in 2018, when social media ad spend increased by a whopping 38.35%. In contrast, a 3.37% annual increase is projected for 2027, the smallest yearly rise.

Despite the slowdown, the rise in social media ad spending will be nothing short of impressive. In just over a decade, the total expenditure on social media will have more than quadrupled.

Social media ad spend: total time spent

With 246 million social media users in the US in 2023 (and growing), it’s no wonder brands are investing more and more in social media advertising.

Plus, the amount of time consumers are spending on social media has also been increasing. This translates to higher chances of getting eyes on your social media ads. In 2023, the average internet user in the US spends two hours and 16 minutes a day on social media.

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