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The social media advertisement market consists of promotional activities to connect with the audience to build the brand, increase sales, and drive website traffic on social media. Advertising refers to communication with the consumers of a product or a service.
Social media advertising or marketing includes generating and sharing content on social media platforms such as Facebook, Twitter, and Instagram in order to accomplish marketing and branding goals. It comprises activities such as image updates, posting text, videos, and other content that driver user engagement.
Global social media ad spends skyrocketed during the last quarter of 2020, despite the continuing economic impact of the COVID-19 pandemic. Other insights include a global rise in cost-per-click (CPC), expanded reach for advertisers on Facebook, a spike in the popularity and ad costs for videos, and a decline in the use of social media influencers for brand advertising over the holiday season.
Growing internet penetration coupled with increasing social media users contributed to the growth of the social media advertising market. The tremendous growth in the number of social media users worldwide is encouraging advertisers and marketing companies to focus more and more on social media platforms in order to establish their products and services among its targeted audience.
When it comes to searching, discovering, and getting knowledge, consumers are no longer passive, and there is a new expectation of instant satisfaction. Marketing has become much more “conversational” in style.
Marketers have been challenged to be more innovative with the content and information they deliver, as well as the method in which they share it.
Looking for a need, understanding it, and attempting to meet it is one component of social media marketing. The idea is to gain and hold the user’s attention by forming a more intimate relationship with them and establishing a positive reputation with them.
Consumers have acquired distinct expectations of businesses as a result of the rise of social media in terms of how they are “treated” from a marketing standpoint.
Monitoring and responding to conversations is critical to a company’s social marketing campaign’s success, and it can aid in the strengthening of a range of fundamental business operations.
Business-to-consumer interactions can now be a real-time, direct engagement that is more responsive, efficient, resourceful, and helpful thanks to social media.
New types of content, metrics, measurement tools, and management platforms have made it easier for marketers to evaluate data and track the success of their campaigns.
Rising internet penetration together with the growth in the number of social media users across the globe is projected to propel the revenues for the social media advertising market over the forecast period.
The advancement in technology is a major trend in the social media advertising market. Social media is likely to experience an increase in the adoption of technologies such as virtual reality (VR) and augmented reality (AR). These technologies help a social media advertising company to enhance their product appearance in order to attract more users.
For instance, Sephora has incorporated AR features on its Facebook page to enhance user experience. Through this, a user can try different products and know if it works for them. This advancement will draw more audience and affect social media advertising positively.
The use of video content on social media channels continued to rise in social media ad spends. Video posts on Twitter jumped by 26.7% from the previous quarter. Video accounted for 17.9% of all posts on Instagram, and 18.1% of all posts on Facebook, in 2020.
In terms of format, Facebook Live was by far the most engaging type of post on that platform in 2020. The increasing popularity of Live Video content and the momentum around Live Shopping experiences highlights just how important social media is as a revenue generation tool. Live shopping is already a megatrend with the Gen Z in China and it’s rapidly gaining traction with brands and consumers in the emerging nations
When examining B2B advertising, social media advertising is used by most marketers owing to its success rate behind search engine marketing. After following a brand on social media, consumers continue to engage in various ways. Customers visit the brand’s website or app, will buy from the brand and also will recommend the brand to a family or friend proving to be a win-win situation for both parties.
Social Media Advertising Market By Advertisement Type
Social Media Advertising Market By Device Type
Social Media Advertising Market By End-use Industry
The global social media advertisement market is expected to grow from $xx billion in 2020 to $xx billion in 2025 at a compound annual growth rate (CAGR) of xx%. The growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing that has increased digital content consumption and advertisements for essentials and health and hygiene products over social media have increased.
50% of consumers increased their social media usage in the last six months. North America market was the largest market for social media advertisement in 2019. Asia Pacific is expected to be the fastest-growing market during the forecast period.
The COVID-19 outbreak has demonstrated the true need for data and how analytics has a key role to play in pandemic management. As businesses strive for sustainability and survive the impact of this pandemic, significant opportunities can be seen for social media analytics vendors. Noteworthy efforts are being deployed to leverage advanced analytics to understand the real-time scenario of pandemic through social media interactions across the globe.
Further, the government, public authorities, and hospitals are using social media platforms to communicate with the people and spread awareness regarding the measures that needs to be taken during the pandemic. The media companies and stakeholders are also finding new ways to engage with their viewers and, they have revived their business strategy and engaging with their viewers through social media.
Many content creators are continuing their work from home in order to stay connected with their audience. The social media management through analytics has proven to be a great way to proactively identify viewers demand and finding new ways to constantly engage with them.
Brick & Mortar Stores Embrace the Shift to Online Shopping on Instagram: While eCommerce has been a popular monetization method for many brands over the last few years, it typically isn’t utilized by brick-and-mortar stores.
In 2020, however, even local gym and yoga studio started offering classes online in a range of formats from free Instagram Lives, Zoom calls, or their own integrated and propriety platforms. Grocery stores with 1-hour turnaround online shopping, professional services like banks and lawyers offering online meetings, and retail stores offering local delivery or curb side pickup.
This shift toward contactless shopping has allowed eCommerce stores to thrive even further in 2020. With social platforms such as Instagram and Facebook already beginning to integrate in-app purchasing, the steps traditionally required to convert a user to a customer will be reduced and the gap between ‘scrolling’ and ‘shopping’ will be significantly blurred.
Setting up retargeting ads with prolonged focus on user experience has proven to be successful for major platforms. Facebook Advertising Success itself Is Tied to this Customer Lifecycle.
To know more about India Social Commerce Market, read our report
Amid the COVID-19 crisis, the global market for Social Media Advertising estimated at US $xx Billion in the year 2020, is projected to reach a revised size of US $xx Billion by 2025, growing at a CAGR of xx% over the period 2020-2025.
After an early analysis of the business implications of the pandemic and its induced economic crisis, growth in the Mobile segment is expected to increase at a considerable rate in the forecast period followed by desktop ads.
The U.S. Market is estimated to be the most dominant market owing to higher disposable income and a better standard of living overall. While emerging nations are quickly catching up and is expected to capture a considerable share in the market in the upcoming years.
Among the other noteworthy geographic markets are Japan and Canada, Within Europe, Germany is forecast to grow at a considerable rate.
Increased focus on the market and competitive intelligence
The global competition continues to affect the profit margins, and companies are constantly on the lookout for solutions to reduce their expenses. Companies need to integrate the demographic, competitive, and business information, along with the customer’s data, to find out the intricacies to outperform their competitors.
Organizations are trying to focus on analysing the sales and various markets to identify the gaps. Customers these days have become brand conscious. They demand better quality, lower prices, and faster delivery of products and services. Advanced analytics is being incorporated to help achieve these market goals.
Social media analytics helps analyse unstructured social data to respond to dynamic market conditions and achieve high sales and operational profitability by targeting just the right person at the right time. Companies are essentially making use of social media analytics to improve their market presence and gain a competitive edge by effectively analysing the competition and customer behaviour from social media platforms.
Social Media Advertising Market Chatbots and Messenger Integration
Chatbots have been adopted by many major online companies like Facebook, Google and Amazon. They’re primarily used for customer service interactions and are especially useful for providing quick answers, addressing complaints, or to solve a technical issue. Tech-savvy people seem to be the most acceptable of chatbots and enjoy using them as a quick way to get information.
In 2020, advances in artificial technology are making bots smarter, which means they’re better able to engage with users. Interacting with a well-designed bot is convenient and can be an enjoyable experience. They can quickly answer questions and provide recommendations.
Advertisers need to meet consumers where they’re most active, which often are mobile messenger apps. It’s predicted that 80% of smartphone users will be using mobile messaging apps as their primary source of communication by 2021. Many businesses now use free messenger apps to conduct business and have direct contact with their customers. For instance, WhatsApp allows businesses to use their platform to respond to customers free of charge if it’s within 24 hours.
There are now over 100,000 companies using chatbots and this number is only expected to grow. incorporating chatbots like Facebook Messenger Bot or AdLingo into PPC strategy is becoming excessively common among brands.
Social Media Advertising Market Live Streaming Events: Facebook Live and LinkedIn Live Are Taking Off
Improvements in live streaming platforms such as Facebook, Instagram, YouTube, Snapchat, and Periscope have given business owners more options to connect with potential customers. They’re being used to showcase product launches, walk through DIY tutorials, and to give people a look behind the scenes.
But they can also be used for events. When a major event happens, many people tune into social media to see what’s happening. They want to be at events like Ted Talks, award shows, March Madness, and New York Fashion Week, but often that’s not possible. Livestreaming allows them to watch what is happening from afar and to join in on the conversation.
Business owners are now targeting events that their customers care about. Some might be large like the Emmys, but others could be a regional tradeshow.
In the last year or so, it’s become a lot easier to shoot and publish live video on Facebook and LinkedIn. And in response, viewers are becoming conditioned to automatically go to these channels to find out the recent activities.
Marketers or public entities no longer need to pay for expensive livestreaming equipment now, thus becoming a mass-produced service which is quickly and readily accessible by customers at large. It is now easier to just tap into one’s existing social media networks and use their smartphone to publish real-time events as and when it happens.
Globally, over 3.6 billion people use social media everyday currently and the number is only projected to increase in the upcoming years. The top social media networks ranked by the number of active users are Facebook, YouTube, WhatsApp and Facebook Messenger.
All the major global players are in fierce competition to acquire market share and gain more users. There is a limit to time spent by an individual user on social media platforms.
Platforms are in a cut-throat race to attract customers to their platform, keep them involved, and make them spend more time on their platform. Players are using every trick in the business book acquisitions, mergers, legal games, etc. to sustain and thrive in this market.
Like Facebook and Instagram are casual, image, and short video-heavy platforms so similar ads work well. Twitter is a bit more formal and usually used to convey views on current social, political, economic matters and serves well for content aligning with that. LinkedIn is a professional space and serious, career-oriented ads are more suitable.
