61% of Total U.S. Digital Ad Spend Went Towards Social Channels in Q3 2022

Key insights

6 takeaways

01
U.S. digital ad spend reached over $23 billion in Q3 2022, representing a quarter-over-quarter growth of more than 5 percent.
02
Social media channels captured 61 percent of total U.S. digital advertising expenditure during the third quarter of 2022.
03
TikTok experienced the highest growth among social platforms, with ad spend increasing 29 percent quarter-over-quarter.
04
Amazon was the top advertiser on TikTok in Q3 2022, followed by Google and Disney at second and third place, respectively.
05
Hulu significantly increased its TikTok ad budget by 667 percent over the two quarters leading up to Q3 2022.
06
Major streaming services including Disney+, Netflix, and HBO Max shifted their advertising focus away from traditional Display and Video formats toward social media channels.

Summary

The Q3 2022 Advertising Data Digest provides a comprehensive analysis of digital advertising trends within the United States, highlighting a resilient market despite broader economic challenges. During this period, total digital ad expenditure in the U.S. exceeded $23 billion, representing a quarter-over-quarter growth of more than 5 percent. A central finding of the analysis is the dominance of social media platforms, which captured 61 percent of all digital ad spending during the quarter.

Social media platforms experienced varying levels of success, with Facebook maintaining its position as a leading advertising channel. However, TikTok demonstrated the most significant momentum, recording a 29 percent increase in ad spend quarter-over-quarter. Amazon, Google, and Disney emerged as the top three advertisers on TikTok, underscoring the platform's growing importance for major corporate entities. Notably, Hulu significantly expanded its presence on the platform, increasing its ad budget by 667 percent over the preceding two quarters.

The data also reveals a strategic shift among major streaming services, including Disney+, Netflix, and HBO Max. These brands have increasingly prioritized social channels over traditional display and video advertising formats. This migration suggests that advertisers view social media as a more effective medium for reaching audiences, particularly as streaming services navigate periods of slower growth. The analysis further explores how external factors, such as high inflation and seasonal events like back-to-school shopping, influenced creative strategies and budget allocations for various industry sectors throughout the quarter.