Meta properties saw 15% ad spend growth in Q4 2024, while TikTok, facing an unknown future in the U.S., dropped 51 percentage points from Q4 2023 to 13%, according to digital advertising company Tinuiti.
These latest figures show the momentum that social media and commerce carry into 2024, although digital advertising overall expects a slowdown in growth in the coming year.
Dig deeper: IAB expects digital advertising growth to slow considerably this year
Why we care. Marketers have two significant reasons to continue, and in some cases increase, their investment in social media campaigns. One, they have to remain competitive in places where the competition is also investing. Two, new AI tools are helping create more efficient, automated campaigns on these platforms. Platforms smaller than Meta’s are also areas of significant investment, Tinuiti’s study showed.
TikTok. U.S. advertisers upped their TikTok spend 13% YoY during the 2024 holidays. This was half the growth rate (27%) TikTok saw in Q3 during the U.S. elections, and down from 64% YOY growth in Q4 2023.
None of this prevented the social media platform from having a very good year overall. Spend on TikTok for 2024 was $4.8 billion, according to MediaRadar. This was a 27% increase over 2023.
Smaller platforms. The Tinuiti study showed brands that bought on both TikTok and Meta spent $0.19 on TikTok for every $1 they spent on Meta. This is the same percentage Meta advertisers invested in Pinterest, when they invested in both, and more than they spent on Snapchat (15%). When marketers invest in multiple social media platforms, they are finding value in the smaller platforms and spending accordingly, the study suggests.
Meta. U.S. ad spend on Meta properties saw 15% year-over-year growth in 4Q 2024. This was an acceleration from 9% growth in 3Q 2024.
For the first time since Q3 2022, Facebook CPM was above water, as it remained flat YoY. Spend growth on Facebook rose from 5% in Q3 to 11% in 4Q 2024.
Instagram ads were up 20% YoY during the 2024 holidays.
Facebook represented nearly two-thirds (64%) of spend on Meta platforms. Instagram was 35%. Marginal sums were also spent on Messenger and Audience Network.
Amazon DSP. A third (32%) of all Amazon ad investment in 4Q was in the demand-side platform (DSP), versus 68% of investment in the Amazon Ad Console.
This number represents the split for brands that advertise in both the Ad Console and DSP. Additionally, the report stated that left out of this number were a number of non-endemic brands that invest in the DSP, but aren’t active on the Console. This number has grown since the launch of Amazon Prime Video ads in early 2024.
Spend on Amazon DSP was up 36% YoY in Q4 2024. The Amazon DSP sells into Amazon’s owned and operated digital properties as well as publishers who use Amazon Publisher Services (APS). Additionally, it sells into other non-Amazon inventory. Due to high CPM for Amazon owned and operated properties, that category receives a higher percentage of spend (55%) than impressions (46%).
Walmart Sponsored Products. Tinuiti saw spend up 53% YoY for Walmart Sponsored Products in 4Q 2024. This was the biggest growth Sponsored Products had seen since the 2023 holidays.
Eighty-eight percent of all Walmart search ads were in Sponsored Products. Two other search formats were used in a smaller percentage — Sponsored Brands and Sponsored Video, each making up 6%.
Dig deeper: Social media and influencers: 2025 predictions
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**Meta Increases Ad Spending by 15% Last Quarter, While TikTok Experiences Significant Decline**
In the ever-evolving world of digital advertising, two of the most prominent players—Meta (formerly Facebook) and TikTok—have recently made headlines for their contrasting trajectories in ad spending and revenue strategies. While Meta has ramped up its advertising investments by 15% in the last quarter, TikTok has faced a notable decline in ad spending, signaling a shift in the competitive dynamics of the social media landscape.
### Meta’s Aggressive Push in Advertising
Meta’s decision to increase ad spending by 15% in the last quarter is a clear indication of its commitment to solidifying its dominance in the digital advertising space. The company, which owns Facebook, Instagram, and WhatsApp, has been doubling down on its efforts to attract advertisers and drive revenue growth amidst growing competition from emerging platforms like TikTok and Snapchat.
The increased ad spending has been strategically focused on several key areas:
1. **Reels and Short-Form Video Content**: Meta has been heavily promoting its Reels feature on Instagram and Facebook to compete directly with TikTok’s short-form video format. By investing in tools and algorithms that enhance user engagement with Reels, Meta aims to capture a larger share of the lucrative short-form video advertising market.
2. **AI-Powered Ad Targeting**: Meta has also made significant investments in artificial intelligence to improve its ad targeting capabilities. With the introduction of Advantage+ shopping campaigns and other AI-driven tools, the company is helping advertisers achieve better ROI by delivering more personalized and relevant ads to users.
3. **Metaverse Development**: While the metaverse remains a long-term bet, Meta’s increased ad spending also reflects its commitment to building an ecosystem that integrates virtual and augmented reality experiences. The company is actively courting brands to experiment with immersive advertising formats within its metaverse platforms.
4. **Small Business Support**: Meta has been ramping up its efforts to attract small and medium-sized businesses (SMBs) by offering tailored advertising solutions. This segment has historically been a key driver of Meta’s ad revenue, and the company’s increased spending aims to reinforce its appeal to this audience.
The results of Meta’s ad spending surge have been promising. The company reported a 12% increase in ad revenue year-over-year, signaling that its investments are paying off. Analysts believe that Meta’s ability to adapt to changing consumer preferences and technological trends has been a critical factor in its sustained growth.
### TikTok’s Decline in Ad Spending: A Cause for Concern?
In stark contrast to Meta’s upward trajectory, TikTok has experienced a significant decline in ad spending over the same period. While the platform remains immensely popular among younger demographics, several factors have contributed to this downturn:
1. **Economic Uncertainty**: The global economic slowdown has led many companies to tighten their marketing budgets. Advertisers are becoming more cautious about where they allocate their funds, and some have opted to prioritize established platforms like Meta and Google over newer entrants like TikTok.
2. **Regulatory Challenges**: TikTok continues to face scrutiny from regulators in key markets such as the United States and Europe. Concerns over data privacy, national security, and content moderation have made some advertisers hesitant to invest heavily in the platform.
3. **Measurement and ROI Concerns**: While TikTok has made strides in improving its advertising tools, some brands still struggle to measure the effectiveness of their campaigns on the platform. This has led to a perception that TikTok’s ad offerings may not deliver the same level of ROI as those of its competitors.
4. **Shifts in User Behavior**: Although TikTok remains a cultural phenomenon, there are signs that user engagement may be plateauing in certain markets. Advertisers are closely monitoring these trends and adjusting their strategies accordingly.
Despite these challenges, TikTok is not out of the game. The platform is actively working to address advertiser concerns by rolling out new features such as TikTok Pulse, which allows brands to place ads alongside top-performing content. Additionally, TikTok is investing in e-commerce integrations to diversify its revenue streams and attract more advertisers.
### The Broader Implications for the Digital Advertising Industry
The contrasting fortunes of Meta and TikTok highlight the dynamic nature of the digital advertising industry. As platforms vie for advertiser dollars, they must continuously innovate to stay relevant and meet the evolving needs of both users and brands.
For Meta, the increased ad spending underscores its ability to leverage its vast ecosystem of apps and advanced technologies to maintain its competitive edge. However, the company must remain vigilant as regulatory pressures and competition from other platforms continue to pose challenges.
For TikTok, the decline in ad spending serves as a wake-up call to address the concerns of advertisers and regulators. The platform’s ability to rebound will depend on its willingness to adapt and innovate in a rapidly changing market.
### Conclusion
As Meta and TikTok chart their respective paths forward, the digital
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