• by Colin Kirkland , Yesterday

A new report from the World Advertising Research Center (WARC) shows ad spend on social media skyrocketing 20.2% last quarter, doubling original projections of 12.4% and generating $4.9 billion in added value.

According to the report, marketers doubled down on ad spend in Q2 due to a desire to stockpile inventory ahead of future tariffs.

Retailers on social media enacted “sharp” increases on social media, focusing primarily on Instagram, which was up 18.8% in Q2, and TikTok, up 56.8% -- making retail the dominant category on both social platforms.

Nine in 10 dollars entering the ad market are expected to go to online-only platforms, with Alphabet, Amazon and Meta drawing over half of all ad spend outside of China.

Social media ad spend is projected to rise 14.9% this year, totaling $306.4 billion, and by 2027, the global social market is expected to be worth $386.9 billion – equal to 28.5% of all ad spend.

By the end of 2025, WARC projects global ad spend will grow 7.4% year-over-year to $1.17 trillion, marking a 1.2% increase from the research center's June forecast following the heightened Q2 performance.

“Global ad spend is growing rapidly, with digital-first platforms capturing almost all the new money,” comments James McDonald, author of the report and director of data, intelligence & Forecasting at WARC. “Despite economic headwinds, including disruption to global trade and reduced purchasing power among consumers, brands are doubling down on Meta, Alphabet and Amazon, while emerging players like TikTok are growing fast but from smaller bases.”

Overall, WARC estimates that by 2027, the global ad market's value will double the 2020 figures, reaching $1.36 trillion.