According to leading marketing forecasters, the dollar amount that’s spent on advertising via social media is predicted to equal what is spent on newspaper ad revenues by the year 2020.
This rapid shift in advertising trends has rocked the media industry over the past few years. Firms have started moving their marketing budgets from the more traditional advertising sources like newspapers, for instance, to online sources across all channels and screens. They are attracted to the native ad format, where their ads blend right into the users' newsfeeds on social platforms like Facebook or Snapchat.
There has been a distinct shift in the way people gather news, too. This can be attributed to the rapidly-growing expansion of social media platforms being implemented on mobile devices, as well as a steady increase in the sophistication of marketing technology.
Experts predict that social media ad spend on a global level will account for 20% of all digital marketing by the year 2019, reaching the $50 billion mark. This will boost social media advertising to a close lead (trailing by just 1%), second only to newspaper ads, and by 2020 it should easily overtake those. For this reason, it’s important that companies recognize the importance of being present on social. However, this come with a caveat:
“Marketers should take advantage of a diversified social platform,” says Genius Monkey CRO, Jeremy Hudgens. “And while it’s true that online video and social media ads are growing at a break-neck pace, it doesn’t mean that a company should shift its entire advertising budget over to social. Your eggs should never all be in one basket.”
Ethington goes on to warn companies that just because this social marketing is gaining in popularity so quickly, it doesn’t mean that it’s more effective than all of the other advertising mediums; it simply means that there is a captive audience, and sites like Facebook have made it incredibly simple to burn through your money with all the available impressions. He emphasizes the importance of diversification, optimization, testing, attribution, adjusting and then repeating the process continually, adding that this is exactly how Genius Monkey gleans so much success for their clients.
According to forecasters, the global expenditure for advertising will expand by 4.4% in the year 2017. That’s the same growth rate as 2016, in which several hot ad opportunities such as the Olympics, the Presidential Debates, Britain’s EU referendum and the Election Coverage helped to create the raise. That makes the 2017 boost that much more impressive!
Online video advertising is another field that has experienced rapid growth. So rapid, in fact, that it is predicted to reach $34.5 billion worldwide by 2019. This figure is slightly ahead of the amount spent on radio ads, but still less than television ad spending.