With 4.7 billion users in 2022, social media networks have become the largest marketplace for advertisers and brands searching to promote their businesses. Since 2020, the amount of money companies put into social media ads has more than doubled, and the figure keeps rising.
According to data presented by AugustaFreePress, global social media ad spending is set to jump over $300bn by 2024, a 33% increase in two years.
Companies Willing to Spend More on Social Media Ads
The last few years have seen a meteoritic rise in social media advertising, especially since 2020. Aside from their social media audience multiplying after Covid-19, brands also started exploring new advertising possibilities, like live streaming. The surge of companies connecting with their target audience through social media caused ad revenues to skyrocket.
According to a Statista survey, between 2019 and 2020, social ad revenues jumped by 35% to $130bn worldwide. In 2021, the figure spiked to $183.5bn; by the end of 2022, social ad spending is projected to grow by another $42bn to $226bn globally.
Statistics show companies will continue increasing their social media advertising budgets, driving nearly $77bn worth of revenue growth in the next two years. By 2025, social media ads will generate $332bn globally.
The Statista survey also revealed the average revenue spending per user is expected to grow by 23% in the next two years, rising from $44.2 to $54.7. Also, mobile ads will account for 83% of total revenue, up from 82% this year.
China to Outrun US and Become the Leading Social Media Ad Market
On a global level, the United States and China convincingly lead in social media ad spending. Statistics show the US will generate $80.6bn or one-third of total ad spending this year. As the second-largest market, China follows with $79.7bn.
However, Statista predicts China to outrun the US and become the leading social media ad market next year, with total ad spending of $96bn. By 2024, this figure is set to touch almost $110bn, compared to $105bn in the US.
Analyzed by social networks, Meta Platforms still dominate the social media ad market, with a 45% share. ByteDance follows with a 25% market share in 2022. Snapchat, LinkedIn, and Tencent follow with a 5% share each.