Social media ad revenue to hit $640bn by 2030

Global social media advertising revenue is projected to reach $640 billion by the end of 2030, according to a report from Omdia, as video formats and AI-driven advertising continue to reshape the digital marketing market.

Omdia’s Social Media Advertising Market Landscape 2026 report forecasts a compound annual growth rate of 12 percent over the next five years. During the same period, social media’s share of total online advertising revenue is expected to rise from 33 percent to 44 percent, placing it among the fastest-growing digital advertising segments alongside retail media.

Video formats fuel revenue growth

The report identified increasing user engagement, demand for full-funnel advertising solutions and the growth of self-serve advertising platforms as major drivers behind continued expansion.

Video advertising formats including Reels, TikTok, Shorts and Stories accounted for 60 percent of total social media advertising revenue in 2025, according to the research.

Platforms are also attracting advertising budgets previously allocated to online publishers and broadcasters’ digital inventory as brands continue to prioritise video-based engagement.

Omdia said future growth will be supported by increases in premium video advertising inventory, stronger commerce integrations and clearer segmentation between performance-led and premium advertising formats.

Market remains highly concentrated

The report found that 90 percent of global social media advertising revenue is generated by six apps: Facebook, Instagram, Douyin, YouTube, TikTok and WeChat.

Meta accounted for the largest share through ownership of Facebook and Instagram, which together represented 54 percent of global social media advertising revenue in 2025. Excluding China, their combined share rises to nearly 70 percent.

Kia Ling Teoh said AI-powered recommendation and targeting systems are strengthening the position of the largest platforms.

Kia Ling Teoh, Principal Analyst, Omdia: "AI-driven targeting and recommendation algorithms are turbocharging the advantage of these big players.

"These capabilities favor ‘walled garden’ platforms with deep user data and sophisticated computing infrastructure, locking out smaller players and funneling ad dollars to the top."

Balancing monetisation and user experience

Despite strong growth projections, the report warned that maintaining user engagement will remain critical for long-term success.

According to Omdia, platforms risk weakening audience engagement if advertising volumes become excessive or disrupt the user experience.

The report concluded that sustained growth will depend on balancing AI-driven advertising optimisation with maintaining platform usability and audience trust.

The full report can be accessed here

omdia.tech.informa.com

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