Facebook global ad revenue to surpass $100B in 2024: WARC
Facebook is on track to achieve a major milestone this year by surpassing $100 billion in global ad revenue, positioning itself alongside Google as one of the few media brands to reach this mark. The Meta-owned platform boasts a massive user base, with 3 billion monthly users and a global advertising audience of 2.2 billion, making it one of the leading digital platforms worldwide.
Investments in AI and Commerce
Driving Facebook's ad revenue growth are its strategic investments in artificial intelligence (AI) and commerce. Meta has been focusing on expanding its Advantage+ suite of ad products, which utilize automation, to enhance its advertising capabilities. The platform recently introduced image and text generators that aid in generating creative content for advertisers. Moreover, Meta's AI tools, such as Advantage+ Shopping Campaigns, have resulted in a significant 12% improvement in return-on-ad-spend (ROAS) over two years, as indicated by Meta's research cited in the WARC report.
Advertisers utilizing Meta's image generation tool have reported a notable 7% increase in conversions, underscoring the effectiveness of the platform's AI-driven advertising solutions. Over the past month, more than a million advertisers have leveraged Meta's AI tools, with retailers projected to invest over $20 billion in these tools this year.
Regional Advertising Trends
According to WARC, brands from Asia are increasing their advertising expenditure on Meta platforms like Facebook, targeting users in diverse regions. While Meta's revenue grew by 19% year-over-year to $40.59 billion in Q3, the company's ad revenue specifically for Facebook saw a 13.2% year-over-year growth. WARC forecasts that Facebook's ad revenue is poised to exceed $112.8 billion by 2026.
However, Facebook's ad revenue growth is anticipated to decelerate in 2025 and 2026, reflecting a decline in its share of the global social market. Rival platforms such as Instagram and TikTok are gaining traction among key demographics like Gen Z, with TikTok facing regulatory challenges in the U.S. Despite Facebook's widespread adoption among U.S. adults, platforms like Instagram and TikTok surpass it in popularity among Gen Z users.
Industry Landscape
Despite the projected slowdown in growth, Facebook's ad business remains twice the size of the U.S. over-the-top market and four times that of TikTok. The platform commands a notable 29% share of U.S. retailer spend, underscoring its significance in the digital advertising ecosystem. Meta anticipates a revenue range of $45 billion to $48 billion in Q4, indicating sustained growth momentum in the coming quarters.
As marketers navigate evolving advertising landscapes, leveraging artificial intelligence can offer solutions for tracking and targeting challenges following changes like the demise of third-party cookies. By focusing on authentic brand narratives, marketers can forge meaningful connections with consumers amid evolving industry dynamics.
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