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State of the Screens

10 Million Active Advertisers Mean A Very Active Holiday Season For Facebook

By November 3, 2020No Comments

Facebook advertising revenue (YoY growth):
1) 
2015-Q3 – $4.3B
2) 
2016-Q3 – $6.8B (↑ 59%)
3) 2017-Q3 – $10.1B (↑ 49%)
4) 2018-Q3 – $13.5B (↑ 33%)
5) 2019-Q3 – $17.4B (↑ 28%)
6) 2020-Q3 – $21.2B (↑ 22%)

Advertisers on Facebook by year (YoY growth):
1)
 2016 – 3M
2) 2017 – 5M (↑ 67%)
3) 2018 – 7M (↑ 40%)
4) 2019 – 8M (↑ 14%)
5) 2020 – 10M (↑ 25%)

Flashback: What Headwinds? Facebook Tops Revenue Estimates In Spite Of…Everything

Facebook advertising revenue per user in the U.S. and Canada (YoY growth):
1) 2015-Q3 – $9.86
2) 
2016-Q3 – $15.08 (↑ 53%)
3) 2017-Q3 – $20.69 (↑ 37%)
4) 2018-Q3 – $27.11 (↑ 31%)
5) 2019-Q3 – $33.86 (↑ 25%)
6) 2020-Q3 – $39.04 (↑ 15%)

Facebook daily active users in the U.S. & Canada (YoY growth):
1) 2015-Q3 – 167M
2) 
2016-Q3 – 178M (↑ 7%)
3) 2017-Q3 – 185M (↑ 4%)
4) 2018-Q3 – 185M (↑ 0%)
5) 2019-Q3 – 189M (↑ 2%)
6) 2020-Q3 – 196M (↑ 4%)

Big question: How can Facebook continue to grow advertising revenue?

Quick answer #1: Video advertising.  The targeted video ad market is already $46B and growing at 24% compounded annually (CAGR)!

Targeted video ad spend (YoY growth):
1) 2018 – $25B
2) 2019 – $38B (↑ 52%)
3) 2020P – $47B (↑ 23%)
4) 2021P – $66B (↑ 42%)
5) 2022P – $84B (↑ 28%)
6) 2023P – $100B (↑ 19%)
7) 2024P – $113B (↑ 13%)

Quick answer #2: Shoppable ads.

More #1: ‘The Social Network’ Ten Years Later: Where Are They Now?

More #2: Inside Facebook’s push to get advertisers to plug directly into its ad servers

More #3: Facebook Rolls Out New Frictionless Commerce Ad Features, Aimed At Mobile Holiday Shopping Season

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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