The expansion and influence of the social media platforms are seen in all aspects of our daily lives. It is also displayed in the media industry which in recent years, has been shaken by fast moving trends in advertising. It has motivated business, in general, to direct their budgets from usual sources; for example, newspapers, to computer and mobile phone based websites!
The opinion given by a leading forecaster projects that the money spent on social media advertising is on course to equal that of newspaper advertising revenues by 2020.
Social media advertising predictions
A further prediction was made by Zenith Optimedia an advertising agency owned by Publicis in France. It was that expenditure on social media advertising globally will by 2019 account for about 20% of all advertising on the Internet. This will place it at just 1% lower than newspaper advertising. Zenith Optimedia also predicts that by 2020 social media will comfortably overtake newspaper ads revenue.
This fast expansion of the social media platforms via mobile devices, stimulated by faster internet interaction and technological development. It has activated changes in how many populations get access to their news. Head of forecasting at Zenith Optimedia, Jonathan Barnard, stated that “Social media and online video are driving continued growth in global ad spend, despite political threats to the economy,”
In 2016, advertising expenditure has increased by 4.4% and the Zenith report forecasts the same rate of growth for 2017! This would be an especially strong performance seeing that 2016 was boosted by events such as the Brexit referendum in Britain, the Olympic Games and the presidential election in the USA.
Consumer compatible advertising
Social media advertising blends into the newsfeeds of users on a platform like Facebook and Snapchat. This has influenced marketers to increasingly direct their budgets to social media sources, which are proving to be more effective than intrusive banner formats.
Another rapid expansion is taking place with online video advertising. It is on track to achieve a total revenue of $35,4 billion worldwide by 2019. Although this is marginally ahead of the sum spent on radio advertising, it remains significantly less than television.