According to a Zenith forecast, by the end of 2019 social media will own 13% of global ad spend. At a potential cost of $84 billion, this spend will put social media ranking as the 3rd overall advertising channel, behind TV and paid search. This means that social will outperform print ad spend for the first time ever with newspaper and magazine ads generating less than $69 billion in 2019. Facebook estimates that over 140 million business use their apps (such as Instagram, Messenger and WhatsApp) and the number is still growing, meaning the market is much more diverse than ever before.
The change has been attributed to small to medium sized businesses shifting their budgets to take advantage of the localisation available on platforms such as Facebook. If companies want to find new customers, employees and engage with their customers then social media platforms are the way to go.
With Facebook’s top 100 advertisers contributing to 20% of the company’s ad revenue, investment in social media advertising will only continue to grow.
Paid Search is still top dog
While social networks now takes their place in the top three ad channels, they’re still way behind paid search. The Zenith report found paid search ads will take in $107 billion in 2019, owning 17% of global ad spend. 2019 is the first year that paid search ads are expected to make more than $100 billion worldwide.
TV advertising still accounts for 29% of global ad spend, keeping its place as the top-ranking ad channel. However, Zenith expects a decline of $2 billion in TV ads during the next three years, dropping from $182 billion to $180 billion.
What does this mean for your business?
What this means for your business is you need to be aware of how wisely you’re spending your advertising budget. The money you are investing in printed advertisement will not give you the ROI that you used to have. Also if you’re not using paid social media ads or even PPC, then you are missing out on the largest advertising channels.
Here at Ricemedia, we have the experts to help you reach a whole new audience for your business and follow the trends using paid social media and PPC advertising. Our amazing service will ensure you’re always on top of your advertising channels. Contact us to find out more.