Market Insights Advertising & Media Advertising

Social Media Advertising - North America

North America

In North America, ad spending in the Social Media Advertising market is projected to reach US$90.99bn in 2024.
This expenditure is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 10.46%, leading to a projected market volume of US$149.60bn by 2029.
In a global context, the majority of ad spending will be generated China, which is expected to reach US$84,650.00m in 2024.
By 2029, it is estimated that 86% of total ad spending in the Social Media Advertising market will be derived from mobile platforms.
Additionally, in North America, the number of users in the Social Media Advertising market is expected to reach 486.4m users by 2029.
In North America, the Social Media Advertising market is increasingly focusing on personalized content strategies to enhance user engagement and brand loyalty.

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Social Media Advertising market in North America is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in North America have shifted towards digital platforms and social media, leading to a surge in demand for social media advertising. With the increasing popularity of social media platforms such as Facebook, Instagram, Twitter, and LinkedIn, businesses are recognizing the importance of leveraging these platforms to reach their target audience. Customers are also becoming more receptive to personalized and targeted advertising, which can be effectively achieved through social media platforms. Trends in the market indicate that social media advertising in North America is becoming more sophisticated and data-driven. Advertisers are using advanced analytics and targeting tools to optimize their campaigns and maximize their return on investment. This includes utilizing customer data to create personalized advertisements, leveraging artificial intelligence and machine learning algorithms to optimize ad placements, and utilizing social media influencers to promote products and services. Local special circumstances in North America, such as high internet penetration rates and a large number of active social media users, contribute to the growth of the social media advertising market. North America has one of the highest internet penetration rates in the world, with a large percentage of the population actively using social media platforms. This provides a fertile ground for businesses to reach a wide audience through social media advertising. Underlying macroeconomic factors also play a role in the development of the social media advertising market in North America. The region has a strong economy and high levels of consumer spending, which provides businesses with the financial resources to invest in advertising. Additionally, the presence of large multinational companies and tech giants in North America further fuels the growth of the social media advertising market, as these companies allocate significant budgets towards digital advertising. In conclusion, the Social Media Advertising market in North America is experiencing growth and development driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As businesses recognize the importance of social media advertising and leverage advanced analytics and targeting tools, the market is expected to continue its upward trajectory 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.