Social Media Ad Spend in the US (2017–2024)
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 2021, the total social media advertising spending by US companies is expected to exceed $44 billion. This represents a 16.34 percent increase from 2020 and nearly four times the annual growth rate of the previous year.
US social media spending has been increasing over the past few years, recording a 19 percent average annual growth from 2017 to 2021.
All signs are pointing to further—albeit slower—growth in social media ad spend in the coming years. Expenditure is expected to breach the $50 billion mark in 2023 before further rising to $51.5 billion by 2024. In the three-year period from 2021 until then, however, average annual growth rates are forecast to slow to 5.31 percent.
From 2017 to 2024, the biggest year-over-year growth rate came in 2018, where social media ad spend increased by a whopping 30.57 percent. In contrast, a 2.84 percent annual increase is projected for 2024.
Despite the slowdown, the increase in social media ad spending will be nothing short of impressive. In just seven years, the total expenditure on social media will have more than doubled.
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Social Media Ad Spend: Time Spent on Platforms
With 3.78 billion social media users around the world (and growing), it’s no wonder brands are investing more and more into 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 Q3 2020, the average internet user spent two hours and 25 minutes a day on social media. In comparison, in 2015, that figure was at one hour and 51 minutes.
Each US company’s social media ad spend would vary according to their 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:
- Facebook: 19.5 hours per month
- VK: 13.9 hours per month
- TikTok: 13.3 hours per month
- Instagram: 10.3 hours per month
- Twitter: 5.6 hours per month