By 2025, US adults will spend more time on TikTok than on Facebook, according to our June forecast. This marks a major milestone for TikTok, which is on track to become the largest social platform in total daily minutes by the same year.
Yet, ad dollars still favor Facebook. In fact, Facebook will claim over five times more ad revenues per person per hour spent on the platform over the next few years. By 2025, Facebook will bring in $1.02 per person per hour while TikTok will bring in $0.19.
“Advertisers are just wedded to Meta,” our analyst Debra Aho Williamson said on our “Behind the Numbers” podcast. “From the perspective of an advertiser wanting to have a regular, reliable partner to advertise on, Meta is still going to get that lion’s share of dollars.”
Staying loyal: The familiarity and ease of Meta’s ad tech has cemented its position as a go-to ad platform. “What Meta has going for it, even though people spend more time on a platform like TikTok, is its operational prowess and its ability to build ad products, to keep marketers engaged in the platform,” Williamson said.
Hit by regulation: Meta’s ad business has rebounded in spite of more stringent compliance issues.
Stealing share: TikTok is closing the gap between time spent and ad spend.
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First Published on Sep 22, 2023
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