Zenith, a media agency owned by Publicis Media, predicts global social media ad spend will grow 20% this year, reaching $84 billion. According to Zenith’s data, social media advertising will account for 13% of total global ad spend and rank as the third-largest advertising channel, behind TV and paid search.
2019 will be the first year that social media ad spend outperforms print ad spend, says Zenith, with newspaper and magazine ads generating less than $69 billion this year.
SMBs and digital brands driving social ad growth. Zenith attributes the growth across social media ad channels to SMBs shifting and adding budgets in order to take advantage of the targeting and localization capabilities offered by platforms like Facebook.
“Small businesses in the U.S. are spending heavily on social media and paid search, and are fueling much of the global growth of these channels,” writes Zenith.
Facebook reported last Friday that it estimates more than 140 million businesses are currently using its family of apps (Facebook, Instagram, Messenger and WhatsApp) every month, “To find new customers, hire employees or engage with their communities.” During the company’s first quarter earnings report call earlier this year, COO Sheryl Sandberg said that Facebook’s top 100 advertisers accounted for less than 20% of the company’s ad revenue. “Our advertiser base is more diverse compared to the same period over last year,” said Sandberg in April, backing up Zenith’s theory that the surge in social media ad spend is a direct result of SMB ad investments.
Read more here: https://marketingland.com/social-media-ad-spend-to-surpass-print-for-first-time-268998