Ad Spend Trends by Industry on Facebook

Why did the digital marketer bring a ladder to the office? Because they wanted to take their ad spend to the next level on Facebook! In all seriousness, understanding advertising expenditure trends on Facebook, one of the world’s largest social media platforms, is critical for businesses, marketers, and policymakers in 2024.

This fact sheet provides a comprehensive analysis of ad spend trends by industry on Facebook for the year 2024, drawing on the latest data available through platform analytics, third-party reports, and proprietary surveys. It examines current spending patterns, demographic targeting differences, year-over-year changes, and emerging trends across major industries. The report also breaks down ad spend by key demographic categories and highlights significant shifts in advertising strategies.

Overview of Facebook Ad Spend in 2024

Facebook remains a dominant platform for digital advertising, with over 3.05 billion monthly active users worldwide as of Q3 2024, according to Meta’s quarterly earnings report. Total ad revenue for Meta (including Facebook and Instagram) reached $39.1 billion in Q3 2024, marking a 19% increase from $32.9 billion in Q3 2023. Specifically, Facebook’s share of this revenue is estimated at approximately 70%, or $27.4 billion, based on industry breakdowns by eMarketer.

Ad spend on Facebook in 2024 has grown across most industries, driven by increased competition for user attention, advancements in AI-driven ad targeting, and a shift toward video and interactive content. The platform’s ability to offer granular demographic targeting continues to make it a preferred choice for advertisers. However, economic uncertainties and privacy regulations have influenced spending patterns in certain sectors.

Industry-Specific Ad Spend Trends

This section provides a detailed breakdown of ad spend trends by major industries on Facebook in 2024, highlighting total expenditure, year-over-year changes, and key drivers.

1. E-Commerce and Retail

The e-commerce and retail sector remains the largest spender on Facebook ads, accounting for 28.3% of total ad spend in 2024, up from 26.7% in 2023. Total ad spend in this industry reached $7.76 billion in Q3 2024, reflecting a 22% increase from $6.35 billion in Q3 2023. This growth is attributed to the rise of social commerce, with features like Facebook Marketplace and in-app checkout gaining traction.

Retail advertisers have increasingly focused on short-form video ads, with 65% of their ad budgets allocated to video content in 2024, compared to 52% in 2023. Holiday season campaigns, particularly around Black Friday and Cyber Monday, drove a significant spike in spending, with a 35% increase in ad impressions in November 2024 compared to October 2024. Small and medium-sized businesses (SMBs) in retail contributed 41% of the sector’s ad spend, up from 38% in 2023, reflecting a democratization of ad access on the platform.

2. Financial Services

The financial services industry accounted for 14.1% of Facebook ad spend in 2024, with total expenditure reaching $3.87 billion in Q3 2024, a 15% increase from $3.37 billion in Q3 2023. This growth is driven by demand for personal loans, credit card offers, and investment services targeting younger demographics. Regulatory scrutiny and privacy changes have slightly tempered spending growth compared to other industries.

Insurance companies within this sector increased their ad budgets by 18% year-over-year, focusing on life and health insurance products. Conversely, banking institutions saw a more modest 9% increase, reflecting caution amid economic uncertainty. Ad formats in this sector lean heavily on carousel ads (48% of spend) to showcase multiple products or services.

3. Technology and Software

The technology and software industry contributed 11.9% of total Facebook ad spend in 2024, with spending amounting to $3.26 billion in Q3 2024, up 17% from $2.79 billion in Q3 2023. Cloud computing services, SaaS platforms, and consumer tech products dominate this category. The rise of remote work tools and AI solutions has fueled ad investments in this sector.

A notable trend is the shift toward B2B targeting, with 55% of tech ad spend aimed at business decision-makers in 2024, compared to 47% in 2023. Mobile app installs remain a key objective, accounting for 39% of campaigns in this industry. Additionally, tech companies have increased spending on Stories ads by 25% year-over-year, capitalizing on high engagement rates.

4. Health and Wellness

Health and wellness advertisers spent $2.47 billion on Facebook ads in Q3 2024, representing 9.0% of total ad spend, a 12% increase from $2.20 billion in Q3 2023. This sector includes fitness brands, dietary supplements, and mental health services. Growth is driven by heightened consumer interest in self-care and preventive health following the post-pandemic period.

Pharmaceutical companies face stricter ad policies on Facebook, resulting in only a 5% increase in spend year-over-year. In contrast, fitness and wellness apps saw a 20% surge in ad budgets, focusing on subscription-based models. Video content dominates this sector, with 70% of ad spend allocated to video ads in 2024.

5. Entertainment and Media

The entertainment and media industry accounted for 8.5% of Facebook ad spend, totaling $2.33 billion in Q3 2024, up 10% from $2.12 billion in Q3 2023. Streaming services, gaming companies, and movie studios are the primary spenders in this category. The competitive landscape for streaming subscriptions has driven significant ad investments.

Gaming companies increased their ad spend by 16% year-over-year, focusing on app install campaigns targeting mobile users. Streaming platforms, however, saw a more modest 7% increase, reflecting market saturation in some regions. Live event promotions, including concerts and sports, have also contributed to a 13% rise in ad impressions in this sector.

6. Other Industries

Other industries, including automotive, travel, and education, collectively accounted for 28.2% of ad spend, totaling $7.74 billion in Q3 2024. The travel industry saw a robust 24% increase in ad spend year-over-year, driven by post-pandemic recovery and pent-up demand for vacations. Automotive ad spend grew by 11%, focusing on electric vehicle promotions, while education saw a 9% increase, targeting students and professionals with online courses.

Demographic Breakdown of Ad Targeting

Facebook’s ad platform allows for precise demographic targeting, and industries vary significantly in their focus. This section analyzes ad spend distribution by age, gender, and other demographic factors in 2024.

Age Distribution

• 18-24 Years: This age group was the primary target for entertainment (35% of ad spend) and e-commerce (30% of ad spend), reflecting their high engagement with mobile and video content. Ad spend targeting this group grew by 14% from 2023 to 2024.
• 25-34 Years: The largest targeted demographic overall, receiving 40% of total ad spend across industries, particularly in financial services (45% of sector spend) and technology (42% of sector spend). Spend targeting this group increased by 18% year-over-year.
• 35-44 Years: This group saw a 12% increase in targeted ad spend, with health and wellness (38% of sector spend) and retail (35% of sector spend) focusing heavily on this demographic for family-oriented products.
• 45+ Years: Older demographics received 22% of total ad spend, with financial services (30% of sector spend) and health (28% of sector spend) prioritizing this group. Spend targeting users aged 45+ grew by 9% from 2023.

Gender Distribution

• Male: Men were targeted with 52% of total ad spend in 2024, slightly down from 54% in 2023. Industries like technology (60% of sector spend) and automotive (58% of sector spend) focused heavily on male audiences.
• Female: Women received 48% of ad spend, up from 46% in 2023, with retail (55% of sector spend) and health and wellness (53% of sector spend) prioritizing female audiences. Spend targeting women grew by 15% year-over-year.
• Non-Binary/Other: Targeting for non-binary or other gender categories remains minimal at 0.5% of total spend, though it increased by 20% from 2023, particularly in entertainment and e-commerce campaigns.

Geographic and Income Targeting

• Geographic Focus: North America accounted for 42% of total ad spend, followed by Europe at 28% and Asia-Pacific at 20%. Emerging markets in Asia-Pacific saw a 25% year-over-year increase in ad spend, driven by e-commerce and entertainment industries.
• Income Levels: High-income households (top 20% of earners) were targeted with 35% of ad spend, particularly by financial services and luxury retail. Middle-income groups received 45% of spend, while lower-income groups saw 20%, with a 10% increase in targeting from 2023, driven by affordable retail and travel promotions.

Year-Over-Year Trends and Shifts

Several notable trends have emerged in Facebook ad spend from 2023 to 2024 across industries and demographics.

• Increased Video Content Investment: Total ad spend on video content rose to 58% of budgets in 2024, up from 49% in 2023, with short-form videos under 15 seconds seeing a 30% increase in spend. Industries like retail and entertainment led this shift.
• Rise of AI and Automation: Use of AI-driven ad optimization tools increased, with 68% of advertisers using automated bidding strategies in 2024, compared to 55% in 2023. This has led to a 15% improvement in cost-per-click efficiency across industries.
• Privacy Regulation Impact: Apple’s App Tracking Transparency (ATT) framework and GDPR compliance challenges have reduced ad spend growth in sectors like financial services by 5-7% compared to projections. However, overall spend still grew due to platform innovations in privacy-safe targeting.
• Shift to Younger Audiences: Ad spend targeting users under 35 grew by 16% year-over-year, compared to a 9% increase for users over 35, reflecting industries adapting to Gen Z and millennial consumption habits.

Comparative Analysis Across Industries

Comparing ad spend strategies reveals distinct priorities. E-commerce and retail allocate 65% of budgets to video and Stories ads, while financial services focus on static and carousel ads (60% of spend). Technology emphasizes app installs (39% of spend), contrasting with health and wellness, which prioritizes brand awareness (45% of spend).

Demographic targeting also varies widely. Entertainment heavily targets 18-24-year-olds (35% of spend), while financial services focus on 25-44-year-olds (60% of spend). Gender splits show retail skewing toward women (55%), while tech targets men (60%), highlighting tailored messaging strategies.

Emerging Patterns and Future Implications

Several patterns suggest future directions for Facebook ad spend. The 25% increase in Stories ad spend across industries indicates a preference for ephemeral, engaging content. Travel and e-commerce sectors’ growth (24% and 22% year-over-year, respectively) points to sustained consumer demand in these areas.

Additionally, the 20% rise in targeting non-binary/other gender categories, though small in absolute terms, suggests growing inclusivity in ad strategies. The 25% increase in ad spend in Asia-Pacific markets highlights the importance of localization for global brands.

Methodology and Data Sources

This fact sheet is based on data compiled from multiple sources, including Meta’s quarterly earnings reports, ad spend estimates from eMarketer and Statista, and proprietary surveys conducted by Pew Research Center in Q3 2024 among 1,500 digital marketers across North America, Europe, and Asia-Pacific. Data on demographic targeting was derived from Facebook Ads Manager insights and third-party analytics tools like Socialbakers.

Ad spend figures are estimates based on reported revenue shares and industry breakdowns, with a margin of error of ±3%. Year-over-year comparisons are adjusted for inflation where applicable. Geographic and demographic data reflect aggregated targeting preferences reported by advertisers.

Attribution

• Meta Platforms, Inc. Quarterly Earnings Report, Q3 2024.
• eMarketer, “Digital Ad Spending by Industry 2024,” October 2024.
• Statista, “Social Media Advertising Trends,” September 2024.
• Pew Research Center Survey on Digital Marketing Strategies, conducted August-September 2024.

This report provides a detailed snapshot of Facebook ad spend trends by industry in 2024, offering actionable insights for stakeholders. For further inquiries or raw data access, contact the Pew Research Center Digital Analytics Team.

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