U.S. social media ad sales experienced a blowout last year, growing 36% to reach $58 billion. However, since then, sales have cooled as the high inflation has created an environment where brands are prone to spend less on advertising. Moreover, ad spending contracted 12.7% year-over-year in July, registering the worst monthly decline since the same month in 2020.
Ad spending for 2023 is expected to slow down significantly to just 2.6%. On top of it, Apple Inc.’s (AAPL) privacy measures on social media companies that rely on cross-site tracking are forecasted to be in the region of a $40 billion hit to their bottom lines over the course of this and the coming year.
