Market Insights Advertising & Media Advertising

Social Media Advertising - Worldwide

Worldwide

Ad spending in the Social Media Advertising market worldwide is projected to reach US$243.60bn in 2024.
This ad spending is expected to exhibit an annual growth rate (CAGR 2024-2029) of 10.78%, leading to a projected market volume of US$406.50bn 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.
Within the Social Media Advertising market, it is anticipated that 83% of total ad spending will be generated through mobile by 2029.
Furthermore, the number of users in the Social Media Advertising market is expected to amount to 5,855.0m users by 2029.
Worldwide, social media advertising is increasingly leveraging advanced algorithms to enhance targeting precision and improve user engagement across diverse platforms.

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

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Analyst Opinion

The Social Media Advertising market in Worldwide is experiencing significant growth and development due to customer preferences and trends in the market.

Customer preferences: Customers in Worldwide are increasingly turning to social media platforms for entertainment, information, and social interaction. With the rise of smartphones and affordable internet access, social media has become an integral part of people's daily lives. As a result, advertisers are targeting these platforms to reach a large and engaged audience. Customers prefer social media advertising because it is personalized, interactive, and easily shareable. They appreciate the ability to engage with brands directly through likes, comments, and shares, and they value the convenience and accessibility of social media advertising.

Trends in the market: One of the key trends in the Social Media Advertising market in Worldwide is the increasing use of video content. Videos are highly engaging and have the potential to go viral, making them a powerful tool for advertisers. Platforms like YouTube, Instagram, and TikTok have seen a surge in video content consumption, and advertisers are leveraging this trend to create compelling video ads. Additionally, influencer marketing is gaining traction in the social media advertising space. Brands are partnering with popular social media influencers to promote their products or services, as influencers have a loyal and engaged following. This form of advertising is seen as more authentic and relatable, leading to higher customer engagement and brand awareness.

Local special circumstances: In different countries and regions, there are unique local circumstances that influence the Social Media Advertising market. For example, in China, social media platforms like WeChat, Weibo, and Douyin dominate the market. These platforms have their own advertising ecosystems and require tailored strategies to reach the Chinese audience effectively. In India, the popularity of regional languages and diverse cultural preferences necessitate localized social media advertising campaigns. Advertisers need to understand the local nuances and preferences to effectively engage with the Indian audience.

Underlying macroeconomic factors: The growth of the Social Media Advertising market in Worldwide is also influenced by underlying macroeconomic factors. As the global economy continues to recover from the impact of the COVID-19 pandemic, businesses are increasing their advertising budgets to regain customer attention and drive sales. The shift towards digitalization and e-commerce has further accelerated the demand for social media advertising. Additionally, the increasing internet penetration and smartphone adoption rates in emerging markets are creating new opportunities for social media advertising. As more people gain access to the internet, the potential audience for social media advertising expands, driving market growth. In conclusion, the Social Media Advertising market in Worldwide is experiencing growth and development due to customer preferences for personalized and interactive advertising on social media platforms. The trends of video content and influencer marketing are shaping the market, while local special circumstances and underlying macroeconomic factors also play a significant role in driving the market's growth.

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.