Why Advertisers Are Shifting Facebook Ad Spend
Facebook is no longer the automatic first stop for ad budgets it once was. Spend isn't necessarily leaving Meta — much of it is moving inside the ecosystem, toward Reels and Instagram, while some advertisers are also testing budget on other platforms entirely.
Budgets on the classic Facebook Feed are plateauing for a meaningful share of advertisers, while spend within Meta is shifting toward Instagram and Reels, and some advertisers are diversifying toward platforms like YouTube and TikTok. The driver is where attention and engagement are actually going, not a single platform being abandoned.
What's Actually Happening to Facebook Ad Budgets
Several 2026 industry reports point to the same general pattern: budgets on Facebook's core Feed placement are levelling off or softening for a notable share of advertisers, even as Meta's overall advertising business keeps growing. That growth is increasingly coming from elsewhere within Meta's own properties — particularly Instagram and short-form video formats like Reels — rather than from the traditional Facebook Feed experience.
At the same time, some advertisers are allocating a portion of budget to other platforms entirely, citing softening time-spent and engagement on Facebook in certain markets and audience segments, especially among younger users.
Why the Shift Is Happening
A few connected factors show up consistently across current industry reporting.
Attention has moved to video
Video, and short-form vertical video specifically, now accounts for a large and growing share of time spent across Meta's platforms — advertisers are following where people are actually watching.
Reels keeps growing inside Meta
Within Instagram and Facebook alike, Reels' share of impressions and ad spend has been rising quarter over quarter, pulling budget away from the classic feed format.
Engagement is softening in some markets
Time spent on Facebook itself is reported as flat or declining in some mature markets, even as global monthly active users remain very large.
Automated, AI-driven buying changes the calculus
As Meta's ad system leans more on automated, algorithm-driven placement and targeting, advertisers increasingly let the system decide where within Meta's inventory a budget performs best — which itself pushes more spend toward Reels and video.
Where the Shifting Budget Is Actually Going
The shift isn't one single direction — it's splitting a few different ways depending on the advertiser and audience.
Within Meta Feed to Reels and Instagram
The most consistent shift reported is internal to Meta: budget moving from the classic Facebook Feed toward Reels and Instagram placements, which are seeing a rising share of both impressions and spend.
Outside Meta Testing YouTube and TikTok
A smaller but notable share of advertisers report allocating a portion of budget to platforms like YouTube and TikTok, particularly when targeting younger audiences whose time-spent has shifted more clearly toward those platforms.
Format-driven, not platform-driven Chasing video, wherever it performs
Several reports frame this less as "leaving Facebook" and more as chasing video-format performance broadly — the platform matters less than where short-form video is currently earning attention and results.
Facebook Isn't Being Abandoned — It's Maturing
It's worth being precise about what the data actually shows: several reports describe Facebook budgets as stabilizing or plateauing for a meaningful share of advertisers, not collapsing. Facebook's overall ad revenue and reach remain very large, and it continues to perform strongly for certain industries and audiences, particularly older demographics and specific verticals like e-commerce and retail.
What This Means for Affiliate Marketers
For affiliates running or considering Meta ad spend, the trend has a few practical implications worth planning around.
Worth doing
- Prioritise short-form, vertical video creative built for Reels rather than repurposed static feed ads
- Test budget across both Instagram and Facebook placements rather than assuming one performs better by default
- Watch your own account's placement-level performance data as the strongest signal, rather than assuming the industry trend applies identically to your audience
Worth avoiding
- Abandoning Facebook entirely based on general industry headlines rather than your own data
- Ignoring Reels and short-form video if your current creative is all static
- Assuming every audience segment is shifting the same way — older or niche audiences may still perform strongly on classic Feed placements
Don't React to the Headline — React to Your Own Data
Industry-wide trend reporting is useful context, but it's an average across many advertisers, audiences and industries. Before shifting your own budget because "advertisers are moving away from Facebook," check whether your specific audience and creative are actually showing the same pattern in your own account data.
The Practical Takeaway
What to actually do with this
- Don't treat this as "Facebook is dead." Reach and revenue remain large — the shift is about format and placement within Meta's ecosystem.
- Invest in short-form video creative. Reels' growing share of impressions and spend is the most consistent finding across current reporting.
- Test, don't assume. Compare Feed and Reels placement performance in your own account before reallocating budget.
- Keep an eye on other platforms too. If your audience skews younger, testing a portion of budget on platforms like YouTube or TikTok is worth considering alongside Meta.
Track Your Own Ad Performance With MarketHealth
MarketHealth provides tracking links so you can compare performance across platforms and placements on your own traffic, rather than relying on general industry trend reports. Review the programme terms for your traffic source, then create your account to get started.
Join MarketHealthFrequently Asked Questions
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A Note on This Article
This article summarises general directional trends reported across multiple third-party industry sources on Facebook and Meta advertising in 2026. Specific figures, percentages and revenue projections vary by source, region, industry and change quickly, so this page describes the direction of the trend rather than fixed benchmark numbers. For decisions specific to your own campaigns, review your own account data and current platform documentation rather than relying on general industry reporting.