Social Media Advertising - United Kingdom

United Kingdom

Highlights

In the United Kingdom, ad spending in the Social Media Advertising market market is projected to reach US$11.37bn in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2030) of 9.41%, leading to a projected market volume of US$19.50bn by 2030.
When compared globally, the majority of ad spending will be generated China, which is projected to reach US$84.65bn in 2024.
Within the Social Media Advertising market market, it is anticipated that 72% 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 United Kingdom is expected to reach 58.0m users by 2030.
In the United Kingdom, brands are increasingly leveraging social media advertising to enhance engagement and drive customer loyalty amidst a competitive digital landscape.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Social Media Advertising market in United Kingdom has been experiencing significant growth in recent years.

Customer preferences: Customers in United Kingdom have shown a strong preference for social media advertising due to its ability to reach a large audience in a cost-effective manner. Social media platforms such as Facebook, Instagram, and Twitter have become an integral part of people's daily lives, and advertisers have recognized the potential of these platforms to target specific demographics and engage with their target audience. Additionally, customers appreciate the personalized nature of social media advertising, as it allows them to discover products and services that align with their interests and preferences.

Trends in the market: One of the key trends in the Social Media Advertising market in United Kingdom is the increasing use of influencer marketing. Influencers, who have a large following on social media platforms, are being utilized by brands to promote their products and services. This form of advertising is seen as more authentic and relatable by customers, as they trust the recommendations of influencers they follow. The rise of influencer marketing has led to the emergence of influencer management agencies and platforms, which connect brands with relevant influencers. Another trend in the market is the growing importance of video content. With the popularity of platforms like YouTube and TikTok, customers in United Kingdom are consuming more video content than ever before. As a result, advertisers are leveraging video ads on social media platforms to capture the attention of their target audience. Video ads are often more engaging and memorable, leading to higher conversion rates for advertisers.

Local special circumstances: The Social Media Advertising market in United Kingdom is heavily influenced by the country's strong digital infrastructure and high internet penetration rate. The widespread availability of high-speed internet and the increasing use of smartphones have made social media platforms easily accessible to a large portion of the population. This has created a fertile ground for social media advertising to thrive. Additionally, the presence of a large number of multinational companies in United Kingdom has contributed to the growth of the Social Media Advertising market. These companies have recognized the importance of social media advertising in reaching their target audience and have allocated significant budgets towards this form of marketing.

Underlying macroeconomic factors: The strong economic growth in United Kingdom has played a crucial role in the development of the Social Media Advertising market. As the economy expands, businesses are more willing to invest in advertising to increase their market share and reach new customers. The growth of the e-commerce sector has also fueled the demand for social media advertising, as online retailers seek to drive traffic to their websites and increase sales. Furthermore, the increasing adoption of digital technologies by businesses in United Kingdom has created a favorable environment for social media advertising. Companies are embracing digital transformation and shifting their advertising budgets from traditional channels to digital platforms, including social media. This shift is driven by the need to stay competitive in a rapidly evolving digital landscape and to effectively target the digitally-savvy consumers in United Kingdom. In conclusion, the Social Media Advertising market in United Kingdom is experiencing growth due to customer preferences for personalized and targeted advertising, the rise of influencer marketing, the increasing importance of video content, the country's strong digital infrastructure, the presence of multinational companies, and the overall economic growth and digital transformation in United Kingdom.

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.