The digital advertising landscape has seen significant shifts in 2024, with some platforms surging ahead and others facing a decline. Over-the-top (OTT) advertising has experienced remarkable growth, capturing billions of dollars in ad spend as brands look for new ways to engage audiences through streaming platforms like Hulu and PlutoTV. At the same time, the social media advertising space is evolving, with Instagram and TikTok gaining market share while Facebook’s dominance shows signs of softening. These trends reveal the growing importance of choosing the right advertising platforms to maximize reach and effectively target diverse demographics in today’s digital environment.
The Power of OTT Advertising
In 2024, OTT ad spend in the U.S. exceeded $10 billion in the first eight months, reflecting a 13% year-over-year increase. This growth outpaced desktop and mobile display ads (+11% YoY) but slightly lagged behind social channels (+15% YoY). Platforms like Hulu, PlutoTV, and Tubi dominate the OTT space, appealing to diverse demographics. Brands like Procter & Gamble are heavily investing in OTT, dedicating nearly 30% of their digital ad budgets to these platforms, highlighting their growing importance in the advertising landscape.
Facebook’s Dominance Slips as Others Gain Ground
In the first half of 2024, Facebook accounted for 36% of U.S. ad spend among social channels, a slight decline of 2 percentage points from the previous half, signaling a shift in the social advertising landscape. As Facebook’s share dipped, other platforms like Instagram, TikTok, and YouTube gained ground, offering advertisers more dynamic and targeted options to reach their audiences. Instagram, in particular, has shown strong growth, while TikTok continues to be a rising force, especially in international markets.
As more brands tailor their social ad strategies to meet their audience demographics, choosing the right platform mix becomes crucial to maximizing reach and effectiveness. With platforms like TikTok growing in influence and shifting advertising budgets, brands must be more strategic than ever in how they allocate ad spend across social channels.
Instagram Surges with 27% YoY Growth
Instagram is leading the charge in social advertising, posting an impressive 27% year-over-year (YoY) growth in ad spend in the first eight months of 2024. This growth makes Instagram the second-largest social ad channel by spend in the U.S., outpacing competitors like TikTok, which grew 19%, and YouTube. Instagram’s success wasn’t limited to the U.S.—the Meta-owned platform saw at least 25% YoY growth in other key markets like Australia, Canada, France, Germany, Italy, Spain, and the U.K., solidifying its position as a global advertising powerhouse.
Conclusion
Digital advertising has become a dynamic space, with OTT platforms and social channels like Instagram and TikTok making significant strides in attracting ad spend. Brands are increasingly turning to these platforms to capture the attention of highly engaged audiences, while more traditional platforms like Facebook see slight declines in influence. With the continued growth of OTT and social media advertising, it’s clear that brands must continuously adapt their strategies to remain competitive and effectively engage users.
To learn more about the State of Digital Advertising 2024, download the report.