The social media advertising frenzy is finally slowing down

There's a reason Instagram is always trying to make you buy something.
Digital advertising revenue is absolutely skyrocketing, hitting a total of over $100 billion in the US. last year, a report published Tuesday by the Interactive Advertising Bureau reveals. Social media advertising is still a big part of that, but it's not quite the juggernaut it used to be, CNBC notes from the study.
From its early days in 2012 until 2018, social media advertising revenue in America has grown a compounded 46.6 percent each year, the study notes. Yet it only grew 30.6 percent in 2018, possibly explaining "why companies like Facebook are exploring new ways to make money, like shopping ads on Instagram," CNBC says. Then again, such massive growth can't be sustained forever.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Mobile, video, and digital audio are among the formats also on the ad revenue upswing. Mobile ad revenue first passed desktop totals in 2016, and grew a massive 40 percent from 2017 to 2018, AdAge notes from the study. Video went up 37 percent between the two years, while digital audio grew 23 percent, largely thanks to the podcast surge, the IAB says. Yet with Sen. Elizabeth Warren (D-Mass.) proposing a big tech breakup as part of her 2020 presidential platform, there's a chance that digital ads, which rely on user data and often blur the lines between content provider and advertiser, could suffer.
Read more advertising takeaways at CNBC, or find the whole study here.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.
-
Supreme Court rules against Trump on aid freeze
Speed Read The court rejected the president's request to freeze nearly $2 billion in payments for foreign humanitarian work
By Rafi Schwartz, The Week US Published
-
'If you keep people permanently unhappy, you cannot have a stable society'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
The Nare Hotel: a charming hideaway on the Cornish coast
The Week Recommends Upgrade your classic seaside holiday at this five-star country house hotel
By Theo Tait Published
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US Published
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US Published
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US Published
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US Published
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published