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State of the Screens

Status Update: Facebook Ad Revenue Spikes

By May 6, 2021No Comments

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Wow: Facebook grew global advertising revenue 46% YoY, the largest YoY increase since 2018-Q1.

Facebook global advertising revenue (YoY growth):
1) 2015-Q1 – $3.3B
2) 
2016-Q1 – $5.2B (↑ 57%)
3) 2017-Q1 – $7.9B (↑ 51%)
4) 2018-Q1 – $11.8B (↑ 50%)
5) 2019-Q1 – $14.9B (↑ 26%)
6) 2020-Q1 – $17.4B (↑ 17%)
7) 2021-Q1 – $25.4B (↑ 46%)

Facebook Revenue in Millions

Facebook advertising revenue per user in the U.S. and Canada (YoY growth):
1) 2015-Q1 – $9.98
2) 
2016-Q1 – $11.86 (↑ 20%)
3) 2017-Q1 – $16.56 (↑ 40%)
4) 2018-Q1 – $23.14 (↑ 40%)
5) 2019-Q1 – $29.69 (↑ 28%)
6) 2020-Q1 – $33.45 (↑ 13%)
7) 2021-Q1 – $46.06 (↑ 38%)

Fascebook Average Revenue Per User

Facebook daily active users in the U.S. & Canada (YoY growth):
1) 2015-Q1 – 161M
2) 
2016-Q1 – 173M (↑ 7%)
3) 2017-Q1 – 182M (↑ 5%)
4) 2018-Q1 – 185M (↑ 2%)
5) 2019-Q1 – 186M (↑ 1%)
6) 2020-Q1 – 195M (↑ 5%)
7) 2021-Q1 – 195M (↑ 5%)

Advertisers on Facebook (YoY growth):
1) 2016 – 3M
2) 2017 – 5M (↑ 67%)
3) 2018 – 7M (↑ 40%)
4) 2019 – 8M (↑ 14%)
5) 2020 – 10M (↑ 25%)
6) 2021 – ?

Big question: What helped drive the increase in ad revenue?

Quick answer: More ads at higher CPMs

Quick math on Facebook’s advertising business:
1) Ad revenue – ↑ 46%
2) Impressions – ↑ 12%
3) CPMs –  30%

Share of Americans who use specific social platforms according to Pew:
1) YouTube – 81%
2) Facebook – 69%
3) Instagram – 40%
4) Pinterest – 31%
5) LinkedIn – 28%
6) Snapchat – 25%
7) Twitter – 23%
8) WhatsApp – 23%
9) TikTok – 21%
10) Reddit – 18%

Social video ad spending (YoY growth) according to eMarketer:
1) 2017 – $5.8B
2) 2018 – $8.5B (↑ 48%)
3) 2019 – $11.2B (↑ 31%)
4) 2020 – $14.7B (↑ 31%)
5) 2021P – $19.2B (↑ 31%)
6) 2022P – $23.2B (↑ 20%)
7) 2023P – $27.0B (↑ 17%)
8) 2024P – $29.9B (↑ 10%)
9) 2025P – $32.9B (↑ 10%)

Social Network Video Ad Spending

Video: Facebook’s strong commerce growth will continue post-pandemic: LightShed’s Greenfield

Facebook's Revenue Surge

 

More #1: Leaked memo: Facebook details how Apple’s privacy change will impact its advertising business

 

More #2: Facebook Ads Could Be Reaching Saturation Point

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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