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Status Update: Facebook Ad Revenue Spikes

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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

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