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Facebook Idea Proposal

Facebook Idea Proposal

Research Question: Are advertisers beginning to slow down their spending on Facebook?

Report Available: Dec. 17, 2015


Blueshift’s initial research shows the vast majority of sources and outlets still believe ad spending on social media sites, including FB, will increase considerably in 2016. However, Blueshift has now received three concerning anomaly data points regarding FB ad spend. A small number of other secondary sources have revealed some disconcerting ad spend data as well.



  1. In Blueshift’s Oct. 16 quarterly advertising report, a digital media director at a top-ten agency reported that social media spend was plateauing. Also, a large toy manufacturer reported spending more on Instagram, but at the expense of FB spending. Last, a recent interview with a long-timesource at a top-three ad agency revealed the belief that ad spending on FB has plateaued and would not show growth in 2016. The source said “FB is at a race to the bottom” and “advertisers know they can build a campaign without FB.”
  2. The vast majority of sources are not yet waving a red flag concerning stagnating FB ad spend. However, in addition to our anomaly data above, a few other signals are appearing. An Oct. survey of 3,720 marketers found more were planning to increase ad spend on TWTR and GOOG’s YouTube than on FB in 2016, though it did say FB will get a bigger share of marketing budgets. One media expert has claimed social media spending will soon abruptly crash as more advertisers begin to realize that the number of eyeballs is not an effective metric to gauge sales conversions.
  3. Social media ad spending is expected to reach $25.14 billion in 2015, higher than the $23.68 billion forecast earlier in the year. Spending will skyrocket 148% on Instagram, increasing from $600 million in 2015 to $1.48 billion in 2016. Twitter ad revenue will increase 45%, FB 32%, and LNKD 22%. Growth rate for TWTR has been adjusted downward from earlier in the year. A recent survey of 50 advertisers found Pinterest ad spend has increased almost eight-fold since January.


Are advertisers planning to level off ad spend on Facebook? Have marketers begun to grow weary with social media sites not converting eyeballs into sales? To gain insight into Facebook and the social media advertising market, Blueshift will gather data and issue a market research report from independent sources in the following areas: Large advertisers and ad agencies, Small and Mid-sized advertisers and ad agencies, Digital media buyers and executives, Companies advertising on Facebook, and Industry specialists.


Companies: Facebook (FB), Twitter (TWTR), Google (GOOG), Yahoo (YHOO), LinkedIn (LNKD)