Social Media Advertising - EU-27

EU-27

Highlights

In the EU-27, ad spending in the Social Media Advertising market market is projected to reach US$20.04bn in 2024.
The ad spending in this region is expected to show an annual growth rate (CAGR 2024-2030) of 9.55%, resulting in a projected market volume of US$34.64bn by 2030.
In a global context, most ad spending will be generated China, with a forecast of US$84.65bn in 2024.
Within the Social Media Advertising market market in the EU-27, 74% of total ad spending will be generated through mobile by 2030.
Additionally, the number of users in the Social Media Advertising market market in the EU-27 is expected to amount to 377.4m users by 2030.
In the EU-27, social media advertising is increasingly focusing on sustainability messaging, reflecting a growing consumer preference for environmentally responsible brands.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Social Media Advertising market in EU-27 is experiencing significant growth and development. Customer preferences are shifting towards digital advertising, leading to an increased demand for social media advertising. This trend is driven by several factors, including the widespread use of social media platforms, the rise of e-commerce, and the increasing importance of online presence for businesses.

Customer preferences: Customers in the EU-27 region are increasingly turning to social media platforms for various purposes, including entertainment, communication, and information. As a result, businesses are recognizing the potential of social media advertising to reach and engage with their target audience effectively. Social media advertising offers businesses the opportunity to target specific demographics, track campaign performance, and generate measurable results. Moreover, customers are becoming more receptive to personalized and targeted advertisements, as they value relevance and convenience in their online experiences.

Trends in the market: One of the key trends in the Social Media Advertising market in EU-27 is the growing adoption of influencer marketing. Influencers, who have a significant following on social media platforms, are being leveraged by businesses to promote their products or services. This form of advertising is effective in reaching niche audiences and building brand awareness. Additionally, businesses are increasingly investing in video advertising on social media platforms. Video content has proven to be highly engaging and can effectively convey brand messages to customers. Furthermore, the use of augmented reality (AR) and virtual reality (VR) in social media advertising is gaining traction. These technologies provide immersive and interactive experiences, allowing businesses to create memorable and impactful advertisements.

Local special circumstances: Each country within the EU-27 region has its own unique characteristics and cultural preferences, which influence the social media advertising market. For example, countries like Germany and France have stricter regulations regarding data privacy, which may impact the targeting capabilities of advertisers. Additionally, countries with a higher internet penetration rate, such as the Netherlands and Sweden, may have a more mature social media advertising market. On the other hand, countries with lower internet penetration rates, such as Romania and Bulgaria, may present untapped opportunities for social media advertising.

Underlying macroeconomic factors: The growth of the Social Media Advertising market in EU-27 is also influenced by underlying macroeconomic factors. The region has a strong digital infrastructure and high smartphone penetration, enabling widespread access to social media platforms. Furthermore, the increasing digitization of businesses and the rise of e-commerce have created a need for effective online advertising strategies. Moreover, the COVID-19 pandemic has accelerated the shift towards digital advertising, as businesses sought to reach customers who were spending more time online due to lockdowns and social distancing measures. As a result, businesses have increased their investments in social media advertising to maintain visibility and drive sales. In conclusion, the Social Media Advertising market in EU-27 is experiencing growth and development due to shifting customer preferences, the adoption of influencer marketing, the rise of video advertising, and the use of AR and VR. Each country within the region has its own unique characteristics that influence the market, and underlying macroeconomic factors such as digital infrastructure and the COVID-19 pandemic have also contributed to the growth of the market.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on social media advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers social media advertising generated by social networks or business networks such as Facebook, Tiktok, Instragram, Pinterest, and LinkedIn.

Modeling approach:

A combined top-down and bottom-up approach determines the market size. Starting with the top-down approach, we calculate global social media advertising by aggregating revenues from key players (Meta Platforms (Facebook and Instagram), ByteDance (Tiktok and Douyin), Twitter, Snapchat, and Microsoft (LinkedIn)). Followed by the bottom-up approach, we justify global, country, and region results using web traffic and the number of app downloads. Lastly, we distribute the results to each country individually with relevant indicators such as GDP, internet users, social media users, and digital consumer spending by country.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.