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Social Media Advertising Revenue Set To Skyrocket Amid Digital Transformation

Robust Growth Forecast

Global social media advertising revenue is projected to reach $640 billion by 2030, according to the inaugural Social Media Advertising Market Landscape 2026 report published by Omdia.

The report forecasts a compound annual growth rate of 12% over the next five years, reinforcing social media’s position as one of the fastest-growing segments within the broader digital advertising market.

Sector’s Rising Influence

Omdia expects social media’s share of total online advertising spending to increase from 33% to 44% over the forecast period, reflecting continued shifts in advertiser behaviour and audience engagement. Rising user activity across social platforms, combined with the growing effectiveness of full-funnel advertising solutions, continues driving investment toward social media channels and away from more traditional digital advertising formats.

Dominance Of High-Value Video Formats

Video-based formats are expected to remain one of the sector’s primary growth drivers, with products including Instagram Reels, TikTok, YouTube Shorts and Stories accounting for 60% of social media advertising revenue in 2025. As advertisers continue reallocating budgets toward short-form video, platforms are increasingly competing through engagement-focused content formats designed to capture user attention more effectively. Integrated e-commerce capabilities within social media applications are also expected to contribute to further advertising growth by connecting content consumption more directly with purchasing behaviour.

Market Concentration Among Tech Giants

The market remains heavily concentrated among a small group of major technology platforms. According to the report, Facebook, Instagram, Douyin, YouTube, TikTok and WeChat collectively account for 90% of global social media advertising revenue. Meta alone captured 54% of total social media advertising revenue in 2025, with that share rising to nearly 70% when excluding the Chinese market.

Balancing Monetization With User Experience

Kia Ling Teoh said AI-driven targeting and recommendation systems continue strengthening the competitive position of the largest platforms. At the same time, the report warns that maintaining long-term growth will require companies to balance monetisation strategies with overall user experience, as excessive advertising saturation could negatively affect engagement and platform retention.

The Path Forward

As the industry evolves, platforms must continue to refine AI-driven ad delivery while safeguarding the core appeal of their digital spaces. This equilibrium will be essential for sustaining the impressive growth trajectory and transitioning ad dollars from traditional media to innovative, performance-driven social formats.

A New Twitter-Inspired Social Network Is Taking Shape

A new social network called Twitter.now is entering the market, with a founding team that includes former Twitter trademark counsel Stephen Coates. The service is being developed by startup Operation Bluebird.

As Ars Technica reported, X sued the company last year and asked a Delaware judge to block the launch. Operation Bluebird argued in a petition that X had abandoned trademarks including “Twitter” and “Tweet.”

Coates has said the project is not an attempt to recreate the original Twitter. In a LinkedIn post, he described the platform as a new public space focused on trust, transparency and user choice.

AI System To Rate Posts

Twitter.now is currently being tested, with early access priced at $20. Its main feature is VERA, an AI system designed to evaluate posts, verify claims and provide sources and context.

Posts receive a trust score, with users eventually able to set a minimum score to filter their feeds. The company says this approach will give people more control over what they see instead of leaving those decisions entirely to an algorithm.

Moderation Remains A Challenge

Scaling moderation will be one of the platform’s biggest tests. Social networks have repeatedly struggled with content moderation as their communities grow, and newer platforms such as Bluesky have faced similar criticism.

Operation Bluebird says VERA will form the basis of its moderation and verification system. A second version is already planned, with expanded tools that would let users set a specific trust threshold for the posts appearing in their feeds.

For now, Twitter.now remains in an early testing phase, combining the familiarity of the Twitter name with an AI-driven approach to evaluating online information.

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