The US earned a revenue of 31.45 billion US dollars in 2020 from the social media advertising market, an increase from 20.34 billion US dollars in 2017 (Loesche, 2018). US remained the top revenue earner as China earned 21.79 billion US dollars which is a great improvement from 2017 (Loesche, 2018). China’s social media advertising market grew twice its size between 2017 and 2022 (Loesche, 2018). These figures depict the importance and potential of social media advertising.
The number of business profiles on Instagram in November 2017 was 25 million, a tremendous increase from 1.5 million in September 2016 (Loesche, 2018). This resulted in an increase in the number of active advertisers from 200,000 to 2,000,000 as from March 2016 to September 2017 (Loesche, 2018). Moreover, on Snapchat, their percentage grew by 8-32% range between January and September in 2016 (Loesche, 2018). This was caused by the increase in the number of active users of the two platforms hence the brands had to make use of it.
Digital advertising has been steadily growing in the past years. 332.2 billion US dollars of revenue was generated from digital advertising in 2021 (Loesche, 2018). This is a two-fold increase from 2015, which is a great indicator of a great foreseeable future of digital advertising. The search advertising category accounted for the biggest chunk of the revenue in both 2015 and 2021 (Loesche, 2018). The digital ad market is set to grow tremendously by 2026 due to the 17% increase in the number of smartphone users and rising demand from SMEs (Setiawan, 2020). These factors cushion enough for steady and fast market growth.
Several aspects influence how you shop online mostly. Among several aspects, reading reviews influence the most while purchasing products directly account for the least influence (Loesche, 2018). With 78% of online buyers being influenced by social media reviews of a product are so essential in ensuring better sales (Loesche, 2018). This places reviews as a great influencer on the selling of products on social media. The incorporation of the amount of increase of revenue generated under digital media into graph bars showing the total amount of revenue generated in different years made it easier to compare the progress of the revenue generation between different years.
References
Loesche, D. (2018). Infographic: The Potential of Social Media Advertising. Statista Infographics. Web.
Setiawan, P. (2020). Augmented reality as potential alternative media for paperless advertising. Business Economic, Communication, and Social Sciences (BECOSS) Journal, 2(1), 89-96. Web.