Omdia has released new projections on the global advertising sector, with social media set to rise at a compound annual growth rate (CAGR) of 12% over the next five years to reach $640 billion by the end of 2030.
The Social Media Advertising Market Landscape 2026 report is Omdia’s first-ever research focused exclusively on this space, which is projected to account for 44% of global ad revenues by 2030, up from 33%. Gains are being driven by increased user engagement, advertisers opting for “full-funnel” solutions, and the proliferation of self-serve platforms.
At the heart of social media’s gains are video formats such as Reels, TikTok, Shorts, and Stories. Last year, video accounted for 60% of total social media advertising revenue, pulling expenditure away from online publisher inventory and broadcasters’ digital offerings. Much of this power is concentrated among just a few players: Facebook, Instagram, Douyin, YouTube, TikTok, and WeChat. Meta’s Facebook and Instagram accounted for 54% of social media advertising revenue in 2025; excluding China, this share rises to 70%.
“AI-driven targeting and recommendation algorithms are turbocharging the advantage of these big players,” said Kia Ling Teoh, principal analyst at Omdia. “These capabilities favor ‘walled garden’ platforms with deep user data and sophisticated computing infrastructure, locking out smaller players and funneling ad dollars to the top.”
Staying in the lead will require a balanced approach to both monetization and user experience, Omdia says, with over-saturated feeds with ads potentially alienating users and undermining long-term engagement.
