A new report from the World Advertising Research Centre (WARC) has projected that Facebook's advertising revenue will surpass $100bn in 2024, reaching a global advertising audience of 2.2 billion. This revival, since 2022, has been primarily driven by APAC advertisers targeting Western consumers, AI innovation, and a shift from targeting to outcomes.

In Q3 2024, Facebook's ad revenue grew by 13.2% year-on-year, a slower pace than its parent company Meta's growth of 19.0%. Despite this, Facebook's share of the global social market is decreasing, with ad spend on the platform expected to drop to 38.2% by 2025.

Retailers' investment on Facebook is predicted to exceed $20bn in 2024. AI tools such as Advantage+ Shopping Campaign have reportedly driven a 12% improvement in ROAS in two years. A Fospha study revealed that 38% of Meta spend went to Advantage+, reflecting a strategic shift of brands prioritising 'ease of management' and greater performance gains from AI automation.

According to the report, Asian brands are increasing their advertising spend on Meta platforms, including Facebook, but are targeting users in other regions. US advertising spend on Facebook is projected to grow to $39.5bn in 2024, up 11.6% year-on-year.

Looking ahead, however, Facebook's ad revenue growth is expected to slow substantially in 2025 and 2026.

Facebook is prioritising creators, groups, long-form video, and moving away from news and political content to attract a new Gen Z audience. The platform ranks among the top three commercial media brands for reach in the UK across all age groups and is the most influential platform for purchases in APAC.

Over a million advertisers used Meta’s AI tools in the last month. Brands using Image Generation saw a 7% increase in conversions, and early tests suggest that Meta’s AI tools such as Advantage+ are helping advertisers optimise for conversions and maximise ad spend returns.

Head of Content at WARC Media, Alex Brownsell, said: "In this WARC Media report, we prise apart Facebook’s latest advertising revenue and user behaviour trends from those of its Meta parent company, and explore the platform’s latest revival in its quest to win a new Gen Z audience."