Social media is set to see an increase in advertisement spend of 20% this year. This boost, according to the Advertising Expenditure Forecasts by Zenith Media, is said to make social media overtake print advertisements. This will be the first time ever that social media has overtaken print ad.
Online platforms such as Twitter, Facebook and Instagram are set to reach $84 billion, whilst newspaper and other print advertisements are set to have a decline in expenditure of 6%, falling to $69 billion. With this 20% boost, social media advertising will be contributing 13% of the global spend for advertising.
The study attributes this increase in social media advertisement to a change in SMBs; wanting to reap the benefits of targeting and other advertising tools that social media platforms can help to provide. A recent report by Facebook has commented that their “advertiser base is more diverse compared to the same period over last year”, and that 140 million businesses are using apps such as Facebook, Instagram and WhatsApp “to find new customers, hire employees or engage with their communities.”
The Zenith Media report states that “Since it began in the mid-1990s, internet advertising has principally risen at the expense of print. Over the last ten years, internet advertising has risen from 12% of total global spend (in 2008) to 44% (in 2018). Meanwhile, newspapers’ share of global spend has fallen from 25% to 8%, whilst magazines’ have fallen from 12% to 4.5%.”
Whilst social media’s contribution to the global spend for advertising will sit at 13%, it is behind TV’s 29%, and paid search’s 17%. This year, social media will be the third largest advertising channel. TV remains the largest advertisement channel, however, this study has reported that the spend on ads for this channel will decrease in the coming years, going down by $2 billion from 2019 to 2021.
Internet advertising collectively will make up 52% of the global spend on advertisements, increasing 8% from last years’ 44%.
There are a number of creative agencies specialising in growth via digital and social media. For Farringdon-based ZAK Agency, it is about using a variety of tools to engage a particular demographic such as the youth aged 14-18 years of age. A campaign could revolve around TV, Instagram influencers and experiential marketing to sell a particular brand concept.
Ad spend growth is predicted to grow from 4.3% in 2020 to 4.4% in 2021 across search engines such as Google, Bing and Facebook Advertising. The study also comments on the figures for paid search advertising, claiming it will grow to over $100 billion (specifically $107 billion) during the end of this year. Paid search advertisement is expected to grow even further to $123 billion in 2021, and make up 18% of the global expenditure on advertisements.