Market Insights Advertising & Media Advertising

Social Media Advertising - G7

In G7, ad spending in the Social Media Advertising market is projected to reach US$119.70bn in 2024.
This ad spending is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 10.42%, which will result in a projected market volume of US$196.50bn by 2029.
In a global context, most ad spending will be generated China, with an expected amount of US$84,650.00m in 2024.
Within the Social Media Advertising market, it is anticipated that 84% of total ad spending will be generated through mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market in G7 is expected to reach 653.2m users by 2029.
In the United States, social media advertising is increasingly prioritizing personalized content to engage consumers amid evolving digital privacy regulations.

Key regions: United States, France, Japan, Europe, Germany

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Analyst Opinion

The Social Media Advertising market in G7 is experiencing significant growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the G7 countries are shifting towards digital platforms and social media for advertising. With the increasing use of smartphones and internet penetration, consumers are spending more time on social media platforms such as Facebook, Instagram, Twitter, and LinkedIn. This has created a huge opportunity for advertisers to reach their target audience through targeted ads on these platforms. Additionally, customers are becoming more receptive to personalized and interactive advertisements, which can be easily achieved through social media advertising. Trends in the market indicate a strong growth trajectory for social media advertising in the G7 countries. Advertisers are leveraging advanced targeting capabilities offered by social media platforms to reach specific demographics, interests, and behaviors. This allows them to optimize their ad spend and achieve higher conversion rates. Furthermore, the rise of influencer marketing has also contributed to the growth of social media advertising. Influencers with large followings on social media platforms are being used by brands to promote their products or services, leveraging their credibility and influence over their followers. Local special circumstances in each G7 country also play a role in the development of the social media advertising market. For example, in the United States, the dominance of tech giants like Facebook and Google in the advertising industry has fueled the growth of social media advertising. In Canada, the bilingual nature of the country creates unique opportunities for advertisers to target both English and French-speaking audiences. In Japan, the popularity of messaging apps like Line has led to the emergence of social media advertising within these platforms. Underlying macroeconomic factors contribute to the growth of social media advertising in the G7 countries. The stable economic conditions, high internet penetration rates, and increasing disposable incomes of consumers provide a favorable environment for advertisers to invest in social media advertising. Additionally, the COVID-19 pandemic has accelerated the shift towards digital advertising as more people are spending time online due to lockdowns and social distancing measures. In conclusion, the Social Media Advertising market in G7 is experiencing significant growth and development due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. Advertisers are increasingly leveraging social media platforms to reach their target audience, and the market is expected to continue growing in the coming years.

Methodology

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.