MMM: 2024 Advertising Recap

Key Takeaways:

• Seven of the top ten advertisers by total US ad spend in 2023 made the list again this year, joined by Expedia, Deutsche Telekom (T-Mobile), and Progressive in 2024. As Chinese e-tailers continue to struggle with a high rate of churn amongst their users, Temu’s advertising spend decreased from its 2023 peak, pushing it down 2 spots in the ranking while SHEIN did not make the list this year

• In 2024, Meta accounted for 46% of digital US ad spend, though the percentage of spend across the major social networks is largely unchanged from 2023. As Meta continues to demonstrate the depth of its advertising capabilities, Threads could provide a new advertising outlet for the company as soon as early 2025

  • Before X was acquired in 2022, advertising on the microblogging platform only accounted for 2% of spend across the major networks, and Meta’s ad platform could test the revenue possibilities for microblogging channels

• TikTok’s potential banning in the US could have material implications for the broader digital advertising and consumer entertainment space, as its 9% share of US ad dollars through 2024 YTD amongst the top ten spending advertiser verticals on all social media platforms would be ripe for the taking

  • Millions of mobile engagement hours in the US on popular platforms such as YouTube, Facebook and Instagram have shifted over to short-form video surfaces on those apps over the past year. Through 4Q24 QTD, US app users spent 83mn, 52mn, 27mn, 26mn and 2mn hours/day on TikTok, YouTube Shorts, Instagram Reels, Facebook Reels and Snapchat Spotlight, respectively

• Excluding gaming mobile apps, Per ST data, TikTok generates the highest level of in-app revenue on a mobile app in the US, per ST data. Through 2024 YTD, consumers have spent more than $1.64bn on TikTok in the US, compared to $1bn for YouTube, $233mn for Snapchat, $91mn for X, $89mn for Instagram and $63mn for Facebook

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