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The State of Social Ad Spend 2020

Source: Adobe

When it comes down to ad revenue, 2019 seems like a pretty good year for the major social media platforms.  Facebook/Instagram took the biggest share racking up nearly $40 billion (yes, billion with a B) and about 83% of the total, followed by LinkedIn at $1.39 billion and then Pinterest at $1 billion. Let’s break down the state of social ad spend.

State of Social Ad Spend Growth

While Facebook alone had the most revenue overall, Instagram had the highest growth at 53%.  Pinterest also saw high growth at 40% followed closely by Snapchat at 37%.  Of the networks mentioned, Twitter had the least amount of growth at 18.7%.

There are so many ways to think about the investment in paid social with respect to what it provides to brands.   That answer depends, in most part, on what the dollars were intended to do.  We do see some clear trends over time related to its performance that impact the bottom line.  

For starters, Ecommerce sites are seeing year-over-year increases in referrals from social.  What was a notable spec at about 3% in Q1 of 2016 has moved to an impressive share at 9% in Q1 of 2019.  This data doesn’t specifically call out paid but since organic social reach has declined over the years, paid social likely has a role in some capacity.    

Ad Spend & Social Commerce

In addition to referrals from social, Internet Users are engaging more in social commerce.  This, social commerce, is defined as clicking an item viewed on social media and then buying that item online.  There are increases from December 2018 to April 2019 with both males and females as well as across most age segments.  Collectively, the increase was 6%; going from 23% to 29%.   So, it’s important to be sure there is share of brand voice on social because users are increasingly taking that viewing experience and translating into dollars for brands.  

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