Social media advertising projected to more than double by 2028
Popularity of social media is a certain thing in uncertain times.
The global social media advertising market is expected to reach $262 billion by 2028, up from $103 billion in 2020, according to a new report by Million Insights. This would give it a CAGR of 12.4% for that period.
What’s driving it. As with all things digital, social media has seen its popularity surge during the pandemic. Worldwide 4.48 billion people currently use social media, more than double from 2.07 billion in 2015, according to Backlinko. In the U.S., use has increased from 5% of adults in 2005 to 72% in 2021, according to Pew Research. This is a remarkable turn-around from 2018, when social media was stagnating, with Facebook reporting no increase in its U.S. user base, while Twitter and Snapchat were losing users. In 2020 Americans averaged 82 minutes per day on social media, a seven-minute jump from 2019. This presents marketers with an unequaled opportunity: More people and the ability to better measure all the parts of a marketing campaign.
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Other figures of note from Million Insights:
- North America held the largest revenue share of more than 30% in 2020.
- The retail industry’s revenue share of more than 20% in 2020 was the largest of all sectors.
- Asia Pacific is expected to register the fastest CAGR of 13.2% from 2021 to 2028 owing to the increased spending on advertising.
- The consumer goods industry vertical segment is expected to register the fastest CAGR of 14.1% from 2021 to 2028. The rising popularity of social media platforms for promoting the brand and building product awareness is driving the market.
- Furthermore, approximately, over 50% of the global population is already on social media, which implies the growth in the market over the forecast period.
Why we care. The economy, both globally and in the U.S., is in turmoil. Pandemic-related supply chain issues were fueling inflation even before Russia’s invasion of Ukraine. While the human toll for those directly in harm’s way is incalculable, it is also creating problems for people far from the battlefields via increasing food and fuel prices. For marketers, social media is likely to be a certain thing in uncertain times.