Major players in the social media advertisement market are Facebook, Inc. , Twitter, Pinterest, Inc. , LinkedIn Corporation, Google LLC (YouTube), Snap Inc. (Snapchat), Tencent (QQ, Qzone, and WeChat), ByteDance Ltd.
New York, July 24, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Social Media Advertisement Global Market Report 2020-30: Covid 19 Implications and Growth" - https://www.reportlinker.com/p05935472/?utm_source=GNW
(Tik Tok), Advance Publications, Inc. (Reddit), and Sina Corp (Sina Weibo).
The global social media advertisement market is expected to grow from $86.41 billion in 2019 to $102.66 billion in 2020 at a compound annual growth rate (CAGR) of 18.8%. The growth is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing that has increased digital content consumption and advertisements for essentials and health and hygiene products over social media have increased. The market is then expected to reach $221.01 billion in 2023 at a CAGR of 29.12%.
The social media advertisement market consists of promotional activities to connect with the audience to build the brand, increase sales, and drive website traffic on social media. Advertising refers to communication with the consumers of a product or a service. Social media advertising or marketing includes generating and sharing content on social media platforms such as Facebook, Twitter, and Instagram in order to accomplish marketing and branding goals. It comprises activities such as image updates, posting text, videos, and other content that driver user engagement.
North America market was the largest market for social media advertisement in 2019. Asia Pacific is expected to be the fastest-growing market during the forecast period.
In December 2019, Sprinklr, the unified front office company for modern channels, announced the acquisition of the social advertising business of Nanigans for an undisclosed amount. Nanigans social advertising business is a perfect complement to Sprinklr’s platform for customer experience management. This acquisition is expected to be the company’s definitive powerhouse in brand social advertising and managing annual ad spending of $1.5 billion on social media channels such as Facebook, Twitter and Instagram. Nanigans is a performance advertising software company based in the USA.
The social media advertising market covered in this market is segmented by advertisement type into microblogging, photo sharing, video sharing, others. It is also segmented by device into mobile, personal computers or laptops and by end-use industry into healthcare, automotive, retail, telecom, BFSI, others.
Stringent regulations imposed by the government of various countries are expected to limit the growth of the social media advertising market in the coming years. The stringent regulations imposed by regulatory bodies make it difficult for a social media advertising company to operate and function smoothly. For instance, in October 2018, lawmakers in Singapore proposed the stringent regulations to control fake news published on social media and internet platforms, which in turn is likely to impact the revenues generated by these channels. This move is expected to stimulate India to introduce similar regulations. This scenario is projected to hamper the expansion of social media advertisement market over the upcoming years.
The advancement in technology is a major trend in the social media advertising market. Social media is likely to experience an increase in the adoption of technologies such as virtual reality (VR) and augmented reality (AR). These technologies help a social media advertising company to enhance their product appearance in order to attract more users. For instance, Sephora has incorporated AR features on its Facebook page to enhance user experience. Through this, a user can try different products and know if it works for them. This advancement will draw more audience and affect social media advertising positively.
Growing internet penetration coupled with increasing social media users contributed to the growth of the social media advertising market. The tremendous growth in the number of social media users worldwide is encouraging advertisement and marketing companies to focus on social media platforms in order to advertise their products and services. According to TheNextWeb’s article published in January 2019 on the Digital Trends 2019, internet users across the globe were 4.38 billion with 57% penetration in the total population in 2019. Moreover, social media users increased to 3.48 billion in January 2019, recording a growth of 9% or 288 million users, then in January 2018. Therefore, rising internet penetration together with the growth in the number of social media users across the globe is projected to propel the revenues for the social media advertising market over the forecast period.
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