Social video ad spending continues to rise, but growth slows

According to eMarketer’s March 2024 forecast, social video ad spending in the US is projected to reach $48.89 billion, accounting for 45.2% of total digital video ad spend for the year. However, the rate of growth for this share is slowing down, with an increase of just 1.0% expected between 2024 and 2026.

While social video ad spending remains a significant portion of digital advertising budgets, there are indications that this growth may be plateauing. eMarketer forecasts a minimal increase of only one minute in time spent with social video between 2024 and 2025. This plateau in engagement could contribute to the slower growth rate observed in social video ad spending.

Another factor influencing the slowdown in growth is the challenge brands face in producing short-form creative content at scale. eMarketer’s Paid Social Forecast Report H1 2024 highlights that many brands are still struggling to adapt their advertising strategies to effectively utilize short-form content for social video platforms.

Despite the slowing growth rate, social video ad spending is expected to surpass linear TV ad spending by 2025. eMarketer projects that by this time, $56.56 billion will be spent on social video ads, compared to $51.14 billion on linear TV ads. This indicates that social video will continue to play a crucial role in digital advertising strategies, even as growth rates taper off.

The dominance of social video in digital advertising reflects the ongoing shift in consumer behavior towards online and mobile platforms. With more users spending time on social media platforms and consuming video content, advertisers are keen to capitalize on this trend by investing heavily in social video ads.

As the landscape of digital advertising evolves, advertisers will need to find innovative ways to overcome challenges such as content production scalability and audience engagement. Strategies that prioritize creativity, interactivity, and authenticity will be key to maximizing the impact of social video advertising campaigns in the years to come.