With 75% of Gen Z and nearly half of millennials making purchase decisions influenced by advertising on social media, it’s no surprise that companies spend money promoting their products and services on these platforms. The amount spent in the last five years was $673 billion in the last five years.
According to a Statista study, brands spent $73.2 billion on social media ads in 2018. Two years later, this number had nearly doubled to $132.7 billion. Statistics show 2021 saw the highest year-over-year growth of 36% to $180.9bn and while 2022 and 2023 growth rates are much lower, global social media ad spending is at all-time highs historical.
His forecast is that they will spend more than 207,000 million dollars this year, which is almost triple the amount they dedicated in 2018, and that this will grow at a compound annual rate of 4.5% until 2027.
This data shows, as OnlyAccounts.io explains, that brands consider social platforms to be an excellent marketing tool, despite being expensive, time-consuming and open to criticism.
distribution of spending
More than 80% of total ad spending this year, or $170.3 billion, will come from mobile, up from $53.5 billion five years ago, while advertising will come from desktop ads, $36.7 billion. , almost double that in 2018.
The lion’s share of ad spending this year, $72.3bn, will come from US brands, closely followed by Chinese brands, whose investment will approach $71.3bn of total ad spend this year. Next, at a further distance, are the British, Japanese and German, with 9.7 billion, 7.7 billion and 3.8 billion, respectively.
When it comes to platforms, Meta dominates the social media advertising landscape with a 55% market share in 2022, four times more than LinkedIn, the second largest social media advertising brand. Snapchat, Reddit, Pinterest, Twitter, and ByteDance pulled in about 5% of global social media ad revenue.
Meta’s dominance will continue this year as Facebook reaches more than 2.72 billion users worldwide, 120 million more than a year ago.
Data from Statista forecasts the number of people using social platforms to reach nearly 4.9 billion this year, up from 4.59 billion in 2022.
