According to YCD news, according to eMarket’s latest forecast, all social platform advertising spending growth will plummet in 2022. Marketers are expected to spend $65.31 billion on social networks this year, a figure that, while up 3.6% from 2021, is down nearly $10 billion from the previous forecast (March 2022) of $74.56 billion.
In addition, although the growth of social platform ad spending will pick up in the next two years (mainly driven by the surge of TikTok and social video advertising), social platform ad spending ($79.28 billion) in 2024 will be more than 20 billion lower than eMarket’s previous forecast Dollar.
eMarket highlighted the downgrade to its growth forecast as a clear reversal in the digital advertising industry. The industry, which exploded during the pandemic, is now suffering from rising interest rates, Apple’s privacy changes and Russia’s war on Ukraine.
A year ago, ad companies such as Facebook parent Meta and Snap Inc both posted double-digit percentage quarterly revenue growth. In the most recent third quarter, Meta’s revenue and net income both fell, and Snap’s revenue fell short of analysts’ expectations.
Challenges related to the current economic uncertainty are expected to challenge social networks in the new year, but some platforms will fare better than others, eMarket noted.
TikTok is expected to see the strongest growth in ad revenue in 2023, even as it faces more government pressure. Meta will see a decline as Facebook reports its first-ever annual revenue decline. Additionally, Twitter’s revenue growth will also slow in 2022, 2023, and 2024, and the company expects to lose 30 million users over the next two years.