TikTok set to surpass Facebook in daily minutes by 2025—but ad spend hasn’t followed
Introduction
In the ever-evolving realm of social media, TikTok is on the verge of surpassing Facebook in daily usage by 2025, marking a significant shift in digital behavior among US adults. This emerging trend reveals that TikTok is poised to become the leading social platform in terms of daily engagement. However, despite this impending milestone, the advertising dollars still predominantly favor Facebook, with a stark disparity in ad revenues per user per hour. In this article, we’ll delve into the factors driving this discrepancy and explore the dynamics of the advertising landscape on these two social giants.
TikTok’s Rise in Daily Minutes
Our June forecast predicts that by 2025, US adults will dedicate more of their precious time to scrolling through TikTok than to browsing Facebook. This underscores TikTok’s meteoric rise as a captivating social platform that appeals to a wide demographic.
However, the surprising twist in this narrative lies in the ad revenue figures. By 2025, Facebook is projected to rake in an impressive $1.02 per person per hour, while TikTok will lag behind at $0.19. So, what’s causing advertisers to remain loyal to Facebook despite TikTok’s growing popularity?
The Dominance of Facebook Ad Dollars
As our analyst Debra Aho Williamson explains, advertisers are firmly wedded to Facebook, now part of the Meta company. The reason? Facebook’s ad tech is well-established and user-friendly. Advertisers appreciate the reliability and ease of using Meta’s platform. It has a proven track record of creating engaging ad products that keep marketers invested.
Williamson highlights that even though more people spend their time on TikTok, Meta’s operational prowess and ad product development capabilities make it the go-to choice for advertisers seeking a dependable partner for their marketing campaigns.
Challenges Faced by Meta
Despite Facebook’s stronghold on ad spend, Meta has faced its fair share of challenges. Recent privacy changes by Apple significantly impacted Meta’s targeting effectiveness, resulting in an estimated loss of $10 billion in 2022, equivalent to 9% of its total revenues. These hurdles are not entirely behind Meta, especially with potential impacts on ad revenues due to privacy regulations like the General Data Protection Regulation (GDPR) in the EU and its UK counterpart.
TikTok Closing the Gap
TikTok’s ad business is on a rapid growth trajectory, as indicated by our US Time Spent vs. Ad Spending 2023 report. Although it may take some time, TikTok’s expanding user engagement could eventually bridge the gap between time spent on the platform and ad spend. Advertisers might be convinced to invest more in TikTok when they realize that users spend an average of 54 minutes per day on the platform. This tangible statistic serves as a compelling incentive for advertisers to maximize their reach and engagement on TikTok.
Conclusion
In the ever-evolving landscape of social media and digital advertising, TikTok’s ascent is undeniable. The platform is on the brink of overtaking Facebook in daily usage among US adults. However, Facebook’s advertising stronghold remains unshaken, thanks to its user-friendly ad tech and operational excellence. While Meta has faced challenges, TikTok is steadily closing the gap between time spent and ad spend, making it an increasingly attractive option for advertisers.
As the digital advertising landscape continues to evolve, the battle for ad dollars between TikTok and Facebook is far from over. Advertisers must carefully weigh factors like engagement, ad tech, and regulatory compliance to make informed decisions about where to invest their advertising budgets. In the end, the choice between TikTok and Facebook will hinge on which platform offers the most effective and reliable means to connect with their target audiences.
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