The Top Paid Social Media Statistics You Need to Know

If you’re thinking of investing in social media to improve brand awareness, increase reach, and boost conversions, it’s worth keeping up with the latest paid social media statistics. 

While organic social media marketing strategies definitely have value – particularly when used as part of a comprehensive full-funnel brand marketing strategy – paid social is becoming increasingly important. After all, competition on social channels is increasing, platforms are making it harder for companies to stand out over influencers and content creators, and organic reach is dropping rapidly.

Investing in paid ads (with the right strategy), could be the key to transforming your marketing ROI in the years ahead. The following paid social media statistics will give you an insight into the benefits of using paid social campaigns in your strategy. Plus, they should give you an idea of the trends you’ll need to prepare for moving forward, to increase your ROAS. 

Essential Paid Social Media Statistics

Before we dive into more specific paid social media statistics, focused on the results you can achieve, and the trends on each platform, let’s start with the basics. 

62.3% of the world’s population uses social media

More than half of the world’s population is active on social media, and the number of users on various channels is constantly growing. For instance, in 2023, there were about 4.9 billion users worldwide, and by 2027, that number is expected to increase to 5.85 billion.

Today’s customers use social media throughout the entire buyer journey, for everything from brand research to product discovery. They’re not just checking Facebook and Instagram occasionally either. They’re spending around 2 hours and 20 minutes each day on their favorite channels.  

If that’s not enough of a reason to invest in a strong social media presence – we don’t know what is.

Meta is Still the Social Media Giant

When we create full funnel marketing strategies for our clients that include paid social media, we typically prioritize Meta-owned channels like Facebook and Instagram. That’s not just because Meta offers marketers fantastic advertising and targeting tools.

Facebook is still the most popular social media channel worldwide, with more than 3.07 billion monthly active users. Instagram isn’t far behind, with over 2 billion monthly active users. 

Both of these channels will give your paid social strategies incredible reach. Even better? Facebook and Instagram are also the two channels that deliver the highest ROI of any social media platform at the moment. They’ll both help you make the most of your ad spend.

Omnichannel Strategies are Becoming Crucial

If you’re not investing in an omnichannel paid social media marketing strategy yet, you should be. The average person has up to 8.4 social media accounts, and most customers expect to be able to find your company on all of the channels they use.

Meta’s Facebook and Instagram are still leading the pack, but if you want to get ahead in your paid advertising strategy, there are other platforms you should be considering. YouTube, for instance, has more than 2.49 billion monthly active users. 

TikTok, on the other hand, boasts the highest growth rate of any social media platform, with a more than 100% boost between 2020 and 2022, and a further 13% increase between 2022 and 2023. 

77% of Businesses use Social Media to Reach Customers

Customers aren’t the only people who love social media. Businesses everywhere (more than 77% now), rely on social channels to connect with their audience. 44% of these companies says social media helps them increase brand awareness, and 41% say it drives revenue.

Additionally, 90% of social media customers follow at least one brand on social media. That means you have a fantastic chance of connecting with your audience on the right channels. 76% of customers have even said they’ve purchased something just because they saw it on a social channel.

The trouble is, as the number of companies on social media grows, it’s becoming harder to stand out with organic content alone. If your customers don’t already follow your business, they’re more likely to miss your posts. That’s why paid social is so important.

Paid Social Media Statistics: The Impact of Paid Social

The social media statistics above shine a light on how important it is to use these channels to connect with your audience. But let’s dive a little deeper into why it’s so important to make “paid social” strategies a priority right now. 

Organic Social Media Reach has Fallen by More than 61% in 3 Years

As we mentioned above, organic campaigns are still valuable, but it’s becoming much harder to stand out with “free” marketing alone. Social media platforms are paying less attention to promoting businesses that don’t pay for ads, and are highlighting content creators and influencers instead.

As a result, organic social media reach has declined by around 61.83% in the last 3 years. Reduced reach means less exposure to targeted customers, and fewer sales. In other words, your organic strategies just won’t deliver the return on investment they used to. 

Paid Social Media Spending Will Reach $255 Billion by 2028

As companies continue to struggle to get the right results from organic campaigns, investment in paid social is increasing. In 2023, advertising spend increased to $207.10 billion. By 2028, experts predict paid social media spend will reach $255 billion. 

Some of this spending increase is connected to the fact that prices for paid advertising campaigns is increasing. However, businesses are also seeing the benefits of a paid strategy. Already, social media ads account for about 28.8% of all digital advertising budgets for major brands.

Paid Social ROI Is Increasing

The average return on ad spend for paid social campaigns varies by industry, market, business model, and even the platform you use. However, on average, companies are achieving a 4:1 ratio for ROAS today. That means every dollar you spend could yield four in return. 

Paid social media reach is also increasing as organic reach diminishes. The volume of social media ad impressions achieved by businesses was 324% higher at the end of 2023 than it was in the previous year.  If you want to get more out of your marketing budget moving forward paid social is clearly the way to go. 

Paid Social Media Statistics by Platform

As mentioned above, the results of a paid social media campaign vary depending on a lot of factors – including the market you’re trying to reach and your budget. However, the exact results you achieve depend a lot on the platforms you use too. 

Here are some of the top paid social media statistics you need to know for each platform.

Facebook Paid Social Media Statistics 

Despite the endless rise of new social media channels, Facebook remains the most popular choice for customers and companies worldwide. It’s the ultimate place to expand your reach with paid social ads – that’s why Meta earns an average advertising revenue of around $131 billion. 

• Over 10 million advertisers are using Facebook’s ad platform today.
• 67% of global marketers have used Facebook ads at some point.
• 29% of B2B and B2C companies say that Facebook delivers the highest return on investment for their paid advertising strategies.
• 53% of marketers plan to increase their use of Facebook for paid social in the future.
• 77% of marketers use retargeting on Facebook and Instagram to increase their reach.
• 74% of all the in-stream non-skippable video ads on Facebook are completed globally. 

Instagram Paid Social Media Statistics 

From photos to Reels and Stories, Instagram is the ultimate platform for sharing all kinds of visual content with your audience. It also benefits from the same powerful targeting tools and advertising systems offered by Facebook. Here are the statistics you should know if you’re planning to start advertising on Instagram. 

• 52% of global marketers use Instagram ads regularly. 
• 29% of B2B and B2C companies say Instagram offers the highest advertising ROI (tied with Facebook) 
• Instagram Reels ads reach an average of 675 million people. 
• Instagram Story ads reach over 500 million people. 
• Multi-level Instagram campaigns that use different types of adds are 90% more likely to drive positive returns on investment. 
• 68% of businesses believe Instagram ads deliver a positive ROI. 

TikTok Paid Social Media Statistics 

TikTok used to be the go-to marketing channel for companies that wanted to reach a younger consumer base. Now, virtually every business is taking advantage of TikTok as a way to boost brand awareness and increase sales. 

• Bytedance (TikTok’s owner) earns $31.7 billion in advertising revenue
• On average TikTok content reaches around 45% of all US customers.
• TikTok advertising revenue worldwide is expected to reach $53 billion by 2027
• 56% of U.S. consumers have purchased items they’ve seen advertised on TikTok 
• 24% of B2C and B2B marketers believe TikTok offers the best ROI of any paid social channel. 
• 43% of marketers are planning on using TikTok ads in the future. 

YouTube Paid Social Media Statistics 

YouTube is quickly catching up with Facebook as one of the top channels for paid social media advertising. The platform generated around $31.5 billion in global advertising revenue in 2023 alone. If you have the right creative content, YouTube can transform your advertising results.

• 90% of marketers use YouTube to share video marketing content.
• 30% of B2C marketers investing in paid social media campaigns use YouTube.
• 29% of B2C marketers believe YouTube is very effective at delivering incredible advertising results. Another 12% rank the channel as “extremely” effective. 
• Only 2% of B2C companies don’t think YouTube ads deliver results. 
• Around 43% of US ad buyers say their biggest clients rely mostly on YouTube Shorts. 
• 26% of B2C and B2B companies say YouTube has the best paid advertising ROI.

LinkedIn Paid Social Media Statistics 

LinkedIn is easily the number one channel for advertising used by B2B brands. If you want to reach other companies with meaningful messages, LinkedIn is the place to be. In fact, by 2027, LinkedIn is expected to generate around $10 billion in advertising revenue. Here are the paid social media statistics you need to know if you’re leveraging LinkedIn:

• 69% of LinkedIn marketers believe hyper-targeted campaigns drive a better ROI than generic strategies (so be precise!) 
• When marketers run paid ad campaigns on LinkedIn, purchase intent among customers increases by an average of 33%.
• In the technology industry, LinkedIn generates 2-5 times higher ROAS than any other social media platform. 
• LinkedIn messaging ads with included “Lead Gen Forms” create up to four times more leads. 
• For educational companies, LinkedIn ads can be 2–4 times more effective than other forms of “display media” ads. 

X (Twitter) Paid Social Media Statistics 

No matter how you feel about Twitter’s rebrand, marketers can’t deny that X has potential from a paid advertising perspective. It generates more than $4 billion in global advertising revenue, and offers an easy way to reach customers throughout their purchasing cycle. Here are some statistics to keep in mind when you’re adding X to your paid social strategy:

• There are over 237 million “monetizable” daily active users on X.
• If you feature a brand logo within the first 3 seconds of an X video ad, the average increase to brand recall is around 30%.
• In the past year, ad engagement on X has increased by 22%.
• Vertical video ads on X achieve seven times higher engagement rates.
• 75% of the revenue for X comes from paid advertising.
• 97% of X users say visual ads connect with them best. 

Pinterest Paid Social Media Statistics

Pinterest often isn’t the first channel that companies think of when they’re planning a paid social strategy. However, the reality is that Pinterest has incredible potential, particularly if you want to reach high-income earners, who are looking for unique products. Here are some great Pinterest paid ad statistics that highlight the benefits of the platform. 

• Pinterest reaches around 28% of all high-income earners. 
• Pinterest ads can be 2.3 times more efficient than other ads in terms of cost per conversion. 
• Companies that run paid Pinterest campaigns can increase their ROAS by an average of 2x. 
• Pinterest ads can bring in 11.4 times more prospects than other social channels. 
• Pinterest ads that generate positive emotional reactions increase action intent by six times. 

Paid Social Media Statistics: What’s Next?

Ultimately, if all the paid social media statistics above tell you anything, it’s that you should be doubling down on your strategy. Organic content can only get you so far, and paid social can give your business the boost it needs. 

However, it’s important to remember that paid social media strategies are constantly evolving, thanks to changing platform components, and buyer trends. 

Here are a few key statistics that highlight the trends you might need to prepare for going forward. 

• Video ads are the key to success. Video ads have a higher click through rate than most other ads (1.84%), and they’re more likely to improve brand recall than any other type of ad. Plus, they’re the best way to share complex information with customers fast. 
• 85% of marketers are using AI to create ad text this year. While the potential for AI in advertising is phenomenal, be cautious. Relying too heavily on artificial intelligence could mean you end up with generic ads, that fail to connect emotionally with customers. 
• The influencer marketing space is expected to reach a value of $56 billion by 2029. Adding influencers to your paid ad campaigns could be the key to expanding your reach, improving your brand’s reputation, and increasing conversion rates.
• Customers are 70% more likely to make a purchase after seeing a retargeting ad. Don’t make the mistake of overlooking the full customer journey when you’re creating your paid ad campaigns. Go beyond focusing on instant conversions. 
• Digital ad fraud costs US advertisers about $15.9 billion a year. Make sure you’re working with an expert to track the performance of your paid ad strategies. Don’t waste your budget because of fraudulent actors.

Optimize Your Paid Social Strategy This Year

The latest paid social media statistics prove that PPC on social channels drives incredible results. It can help boost brand awareness and recognition, increase sales and conversion rates, and even reduce customer acquisition costs. All you really need is the right strategy. 

Working with a performance-focused, full-funnel paid social media agency like The Graygency can give you company the edge it needs. 

Our data-driven approach to building comprehensive campaigns for all types of social media channels will help you to achieve results faster, and save money on your ad strategies. 

Contact our team today to learn more about our unique paid advertising methods, and discover how we can help you turbocharge your company’s growth.