Brands will spend $23B on social media this year
Social media ad spending surged 33 per cent globally last year and the growth continues. Brands are on track to spend $23.68 billion this year, according to figures from eMarketer.
By 2017, the researchers say that figure will further balloon to almost $36 billion and represent 16 per cent of all digital ad spending.
In a market like Australia, the implications are significant. Google and Facebook already take a majority of the digital ad dollars in a market where digital advertising will reach a majority of total spend long before the end of the decade, based on current projections.
And remember, services like Pinterest, Tumblr and Twitter are only just getting started Down Under.
That will leave traditional publishers, free to air, and radio businesses fighting over the scraps.
According to the eMarketer report, “Advertisers in the US and Canada place a premium on social media and will ramp up paid spending on social networks 31.0 per cent this year to pass $US10 billion for the first time. Social network advertising in Asia-Pacific will total $US7.40 billion, with Western Europe the third-largest region at $US4.74 billion.”
The researchers also note, however, that the drop-off in spending to the other three major world regions is steep, “… with Latin America reaching only $US680 million in 2015, while Central and Eastern Europe and the Middle East and Africa lag further behind.”
* Which-50 is hosting our CMOs and their place in the Digital C-Suite round table on 27 May in Sydney as part of a major editorial initiative. We only have a few spots available. If you are a senior marketer and would like to join us for a robust discussion with your peers about marketing and digital transformation contact Which-50 editor Andrew Birmingham via LinkedIn. There is no charge for guests, but places are strictly limited.