The Effects of Social Media on Ad Spend
Research shows that marketers today are investing more in social networks (like Instagram), video channels, and messaging apps (like Facebook Messenger) in an attempt to reach customers and prospects in the online arenas they frequent.
HubSpot’s State of Inbound reports that 46% of teams have higher budgets in 2018 and a lot of that is going to social marketing! We know, for example, marketers are investing heavily in video:
Social media has become a great space for advertisers because we’re able to reach more people than ever. In the beginning, marketers used social as a place to connect with their target audiences. Now, things move so quickly that marketers are constantly changing their ad approaches in order to keep up with consumer behaviors and tech trends.
The bright infographic below, created by MDG Advertising, is a great look at the key factors that influence a continued investment in social media advertising. Here are the standout points for me:
- Social platforms are only growing in popularity and dominated by consumers. American consumers spend an average of 23.6 hours online every week Most of that time is on their social accounts. People want brands and marketers to be accessible and present on social, but only if you aren’t overly sales-y. Your brand wants to be where the consumers are – social media sites – but in a friendly, authentic way.
- Ad spend priorities have changed. As consumers shift to digital channels, so must your ad spend. In 2018, brands devoted 33% to digital (up from 25% in 2014) and decreased ad spend for print media (magazines is down to 11%, newspapers is only 6%).
- YouTube is king. 73% of adults spend time on YouTube. This means your brand needs to have an account and create video content.
- Social spend is on the rise. Okay, so it’s established that marketing dollars are increasingly being spent on digital platforms and this also means social media! Currently, social spend accounts for 12% of total marketing budgets, on average. CMOs predict they will increase their social media spend by 71% in the next five years. 71%! And this increase in social budgets is expected for B2B and B2C brands.
There’s more details and also some good thoughts on evolving goals and challenges, so be sure to scroll down!
Social media is continuing to evolve and in order to be successful brands and marketers will be constantly adapting their strategies. As the audience changes, so too must you! Stay up-to-date on current technological and consumer trends, shift your marketing strategies as needs, and you’ll see improved ROI next year and beyond.
Need help convincing your executives that social media is a worthy investment? Get in touch with us and check out these past blogs on the subject.