Social Media Overtakes Print for the First Time
According to a recent research*, social media overtook print advertising for the first time in history. Becoming the third-largest channel with a 13% share of global ad spend, behind television (29%) and paid search (17%). Its growth is slowing down, but it is still steady. The forecast for the next two years is that it will reach 17% in 2020 and lower to 13% in 2021. Meanwhile paid search ad will exceed US$100bn for the first time this year and will grow steadily with 8% for the next two years.
Social media has some strong advantages over traditional media including detailed targeting, different formats and first-party data about the users. The main source behind the growth is small businesses and digital companies. In its recent article, the Facebook newsroom stated: “We estimate more than 140 million businesses use our apps every month to find new customers, hire employees or engage with their communities.”. Many social media platforms expanded their influence among local businesses by giving them advanced tools to create hyperlocalized or geotargeted campaigns. This, combined with the expanding use of mobile devices, is a natural evolution of the digital world.
How did it happen?
There are some regionally defined differences in the research, even though this is the global trend. In 2018, the ad spend growth for the region of Western Europe was only 4% and for Central and Eastern Europe, it was 9.6%. The expectations for 2019 for both regions are much lower. The reasons can be found in the lack of big sports events this year. Like the Winter Olympics and the FIFA World Cup, but mostly by the weakened economies.
Adspend growth is also slowing in the Asia Pacific. With 4.4% growth forecast for 2019, after a 6.9% growth in 2018. By contrast, the US market is the source of nearly half of the ad spend and 5.7% steady growth for the next two years.
Television is still the top-ranking channel when it comes to advertising but it is losing its positions. “The total spend on TV ads will decline by $2 billion during the next three years, dropping from $182 billion this year to $180 billion in 2021.” is said in another article on the topic.
Why this is important?
The opportunities that social media gives to advertisers are changing the picture of global marketing. Offering sophisticated targeting methods and unlimited reach, social media channels surpasses traditional marketing. This will form the future tactics and strategies of all those who want to be relevant to the trends. Everyone knew that this day will come but now – being a reality we all should think about allocating some budgets and rewriting some concepts.
Being always informed and on the top of the new trends. Our team is a well-tailored crew of professionals who will gladly help you to show the best of your business, on the right platform, with the right message and most importantly – in front of the right audience.
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*Zenith’s Advertising Expenditure Forecasts