Social media advertising appears to be slowing down as Magna just revised its growth forecast for 2022 from 18% to 11%.
It’s a sign that more advanced markets such as the US and China are reaching a saturation point.
The latest forecast predicts that globally digital ad format revenues including search, social, video, banners and digital audio will still come in at $534 billion representing a total 65% of ad sales globally.
Search remains the largest format ahead of social while digital video is proving the most dynamic.
Factors that are leading to a drop in growth in social include client saturation in markets where budgets are reaching a stagnation point, but also audience saturation because social apps are saturation in the Western World and China.
Apple’s iOS privacy updates also affected spending as many social app users have opted out of sharing their device ID.
Meanwhile, mobile video reflects a continued shift by consumers away from linear TV which has led bigger streaming players like Netflix to introduce ad-supported tiers.