The question we hear most from clients: “Is Facebook still effective advertising?” It’s a fair concern. Between TikTok’s explosive growth, privacy changes, crippling tracking, and headlines declaring Facebook “dead,” it’s easy to assume the platform has lost its advertising edge.

This isn’t about whether Facebook works – it’s about understanding how it works now and whether it aligns with your specific business goals.

Let’s cut through the noise with data, benchmarks, and real-world insights about Facebook advertising in 2025.

The State of Digital Advertising in 2025

How the Landscape Has Shifted

Digital advertising in 2025 looks radically different than just five years ago. AI-powered automation handles bid optimization, privacy regulations limit tracking capabilities, and new platforms fragment audience attention.

The explosion of TikTok, the resurgence of YouTube Shorts, and the growing influence of creator-driven content have reshaped where audiences spend their time. Meanwhile, Apple’s App Tracking Transparency and Google’s phase-out of third-party cookies have fundamentally altered how advertisers track and target users.

Yet despite these seismic shifts, Facebook (now Meta) hasn’t faded into irrelevance. It’s adapted, evolved, and in many ways, strengthened its position through strategic pivots.

Facebook’s Position in the Modern Marketing Mix

Facebook no longer dominates as the default advertising platform for every business. Instead, it’s become a strategic choice within a diversified approach. Smart marketers use Facebook alongside Google, TikTok, YouTube, and email marketing – each platform serving specific roles in the customer journey.

Research by eMarketer (2024) shows that while Facebook’s share of total digital ad spend has decreased from 25% to 18%, its absolute advertising revenue continues growing, reaching $142 billion in 2024.

Why Major Brands Still Invest Heavily

Despite predictions of its demise, Facebook remains critical for major advertisers because of three factors: unprecedented scale (2.9 billion monthly users), sophisticated targeting despite privacy changes, and unmatched retargeting capabilities through the Meta Pixel.

The platform offers something no other channel can match: the ability to reach nearly 40% of the global population with precise messaging at scale.

Who Still Uses Facebook – and Why It Matters

Updated Demographics for 2025

The “Facebook is for old people” narrative oversimplifies reality. While it’s true that Gen Z prefers TikTok and Instagram, Facebook’s user base remains massive and valuable:

Age Distribution (U.S.):

• 18-29: 32% (declining but still substantial)
• 30-49: 77% (peak usage)
• 50-64: 73% (growing)
• 65+: 58% (fastest-growing segment)

For businesses targeting professionals, parents, homeowners, or mature consumers, Facebook’s demographics are ideal. The platform also maintains strong usage in international markets, particularly in Asia and Latin America.

Behavior Patterns That Matter

Modern Facebook users engage differently than they did five years ago. Key trends include:

• Video consumption: Users spend 50% of their time watching video content
• Groups and communities: Private groups show 3x higher engagement than public pages
• Shopping behavior: 1 in 3 U.S. users have purchased through Facebook/Instagram shops
• Purchase intent: Users are 38% more likely to purchase from brands they follow

These behaviors create valuable advertising opportunities for businesses that align their strategy with how users actually interact with the platform.

Is Your Audience Still There?

Before investing in Facebook ads, assess whether your target audience actively uses the platform. Local service businesses, B2C brands targeting ages 30+, and eCommerce stores typically find strong audience overlap. B2B companies targeting younger tech workers may find better results on LinkedIn or YouTube.

Are Facebook Ads Still Effective in 2025?

Performance Benchmarks Across Industries

Let’s examine real data on Facebook ads still work 2025 performance:

Data compiled from WordStream (2024) and internal Graphicwise campaign analysis

These numbers reveal that Facebook ads are still effective? Yes – when executed properly. Performance varies dramatically by industry, with local services and eCommerce seeing the strongest results.

Effectiveness by Industry

• eCommerce: Facebook remains dominant for product discovery and direct sales. Dynamic product ads and catalog integration make it easy to show relevant products to interested users.
• Local Services: Hyper-local targeting (down to 1-mile radius) makes Facebook ideal for restaurants, home services, healthcare providers, and retailers.
• Healthcare: Despite stricter ad policies, healthcare providers achieve strong results through educational content and community building.
• B2B: While LinkedIn often wins for high-level decision-makers, Facebook excels for reaching broader business audiences and nurturing leads through retargeting.
• Education: Schools, courses, and training programs benefit from Facebook’s detailed demographic targeting and lead generation tools.

Platform Comparison: Where Facebook Stands

Each platform serves different purposes. Facebook’s strength lies in audience targeting and retargeting, not necessarily lowest cost or highest intent.

Advantages and Drawbacks of Facebook Advertising

The Pros

• Precision Targeting and Retargeting: Despite privacy changes, Facebook still offers granular targeting by demographics, interests, behaviors, and custom audiences. Retargeting website visitors and engaged users remains highly effective.
• Deep Data Insights: Meta’s analytics provide detailed performance metrics, audience insights, and conversion tracking that inform strategy optimization.
• Cross-Platform Integration: One campaign reaches users across Facebook, Instagram, Messenger, and Audience Network, maximizing reach and frequency.
• Scalable AI Optimization: Advantage+ campaigns use machine learning to continuously improve performance without manual intervention, making sophisticated optimization accessible to small businesses.

The Cons

• Rising Competition and Costs: As more advertisers flood the platform, CPCs have increased 25-40% across most industries since 2020. Competition for attention drives up costs.
• Declining Organic Reach: Business pages now reach just 2-5% of their followers organically, making paid promotion nearly mandatory for visibility.
• Attribution Challenges: iOS tracking limitations mean you can’t accurately attribute all conversions to Facebook. The platform likely drives more results than it can measure.
• Creative Fatigue: Users see so many ads that creative burns out quickly. You need constant fresh content to maintain performance.

Expert Verdict 

The Data-Driven Answer

Is Facebook advertising still effective? Yes – but with important caveats. The platform delivers strong ROI for businesses targeting the right audiences with quality creative and realistic expectations. It’s no longer the “easy button” for cheap customer acquisition it once was, but it remains one of the most powerful tools in digital marketing.

Performance varies dramatically by industry, with local services, eCommerce, and established brands seeing the best results. B2B companies and ultra-niche products may find better returns elsewhere.

When Facebook Is Worth the Investment

Facebook makes sense when:

• Your target audience actively uses the platform (check demographics)
• You can commit 3-6 months for proper optimization
• Your customer lifetime value supports a $50-$200 acquisition cost
• You have or can create quality creative content regularly
• You need scale that other platforms can’t provide

When to Look Elsewhere

Consider alternatives if:

• Your audience is primarily Gen Z
• You need immediate, high-intent leads (Google is better)
• You have severe budget constraints (under $500/month)
• Your industry faces heavy ad policy restrictions

Strategic Takeaway for 2025

Don’t put all your eggs in Facebook’s basket, but don’t abandon it either. The smartest approach integrates Facebook within a diversified marketing strategy where it complements Google’s intent-based traffic, TikTok’s viral potential, and email marketing’s owned audience.

Facebook marketing effectiveness in 2025 depends less on the platform itself and more on how you use it. Brands treating it as a one-time campaign will fail. Those viewing it as an ongoing testing and optimization engine will thrive.

Ready to Maximize Your Facebook Advertising Results?

Understanding whether Facebook ads still work 2025 is just the beginning. The real question is whether you’re leveraging the platform’s full potential for your specific business.

Wondering if Facebook advertising makes sense for your business? Let’s find out together. We offer free strategy consultations where we analyze your target market, business goals, and competitive landscape to determine the right marketing mix for your growth.

Contact Graphicwise today for a no-obligation discussion about your advertising strategy. We’ll show you exactly how Facebook (and other platforms) can drive real revenue for your business – or honestly tell you if better alternatives exist.