Social media companies rely on the fortunes of other businesses that buy ad space on their sites. These businesses are bearing the strain of worsening economic conditions. Social media ad spending is expected to decline to 5.2% in 2023.
In the United States, social media ad sales growth increased 3% in the first half of 2022 to $30 billion, declining significantly from an increase of 38% in the same period a year ago. Media investment and research firm Magna has lowered its expectations of U.S. ad growth to just 4.8% next year.
