Almost all people around the world have social media accounts. Some of them even have several accounts in different social media networks. Somehow, humans are grateful for the developers of these sites. Why? Well, first of, social media can let a person communicates to other person no matter how far they are with each other. It builds bridges to form good relationships. There are many benefits in using these kinds of networks. Nowadays, these sites have the ability to promote products or services of a certain company. Marketers often refer this term as social media advertising. Social Media advertising is one of the fresh and new methods in digital advertising.
Percentage of Total Expenditure in Social Media
Out of the different digital advertising strategies, social media ads represent about 13.9% of it. However, as the years passed by the role of social media in the business world is becoming big. By looking at the graph below, an individual can see the percentage of social media advertising expenditure in digital advertising around the globe from year 2013 to 2017. In 2013, 23.2% of the digital advertisements’ expenditure came from the social media ad. It grows by 5.5% and 2.7% in the years 2014 and 2015 respectively. It expected that in this year 2016 it will increase by 1.9% and 1.2% in the upcoming year 2017. From these insights it can be concluded that the total amount to be spent in total media advertising is escalating.
Another data from eMarketer in April 2015 shows the social network ad spending (billions) worldwide, by region from 2013 to 2017. It can be observed that in year 2013, the total amount spent worldwide is 11.36 U.S. billion dollars. Advertisers from the North America are said to have spent the most in social media ad in that year with a total amount of 4.94 U.S. billion dollars. When 2014 came, a total amount of 17.74 U.S. billion dollars are spent and 23.68 U.S. billion dollars in 2015. By the end of 2016, it is expected that the total expenditure will increase by 6.23 U.S. billion dollars and in 2017 the amount will pass 30 U.S. billion dollars. Throughout the years, North America maintains as the top social media ad user and then it was followed by the Asia-Pacific and Western Europe. The Latin America, Central & Eastern Europe and Middle East & Africa regions will spend only a small amount for this advertising.
However, another forecast of eMarketer in March 2015 shows an increase of the expected total amount to be spent worldwide in social media advertising. From 23.68 U.S. billion dollars it jumps of to 25.14 U.S. billion dollars. Also, the expected amount in 2016 and 2017 escalated greatly. From 29.91 and 35.98 U.S. billion dollars it became 32.91 and 41 U.S. billion dollars. Thus, from the data it can be gathered that more advertisers have realized the effectiveness of social media ads in promoting companies. Out of the different social media sites, Facebook is reported to largely contribute in the increase of the total amount to spend in social media ad. In 2015, 16.29 U.S. billion dollars were used for Facebook ads. It is predicted to even increase more in 2016 and 2017.
In conclusion, if businessmen are planning to invest their advertisements in social media, they must learn how to operate it and how to garner more people using it. If intelligently used, then social media advertising is very much useful in the business world.