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BizReport : Social Marketing : December 22, 2020

Forecast: Social media ad spend to push $105b

Look for more marketers to push ad dollars into the social space in 2021. That is a key takeaway from a new advertising forecast that suggests the social media ad spend could skyrocket by about 15% in 2021. If so, that would be an overall increase of 68% for social advertising since 2017.

by Kristina Knight

Consumers are increasingly in the social space, and now advertisers are headed there, too. According to new data marketers will push about 15% more ad dollars into the social space in 2021, with the total social marketing spend set to reach at least $105 billion.

Social marketing has seen tremendous growth over the past three years, increasing by more than 65% since 2017. Social marketing was one of the fastest-recovering ad verticals after the initial coronavirus shut-downs in March of this year. For 2020, researchers believe the social media ad spend will top $91 billion, a 6% increase YoY.

The increase in social spending will have a direct effect on the mobile ad spend, as most consumers login to their preferred social networks via mobile devices.

Finaria experts believe the mobile ad spend will increase from $31 per social media user (2020) to $36 per social media user between 2021 and 2025.

Meanwhile, Statista is forecasting a 6% CAGR increase for social advertising between 2020 and 2025.

"One of the main trends within Social Media Advertising is the further monetization of social networks and messenger apps. The integration of shopping and payment solutions into social networks combined with exact localization will increase user engagement, conversions, and performance of advanced targeting. Besides the growth potential in the field of social networks, an integration or proliferation of advertising spaces within messenger apps such as WhatsApp or Instagram will rapidly increase the revenue potential of current market key players like Facebook," write the experts from Statista.

Their experts suggest the social media spend in the US will reach at least $134 million by 2025.

Tags:, social marketing, social marketing trends, social media spending, social media trends, Statista

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