Zenith, a media agency owned by Publicis Media, predicts global social media ad spend will grow 20% this year, reaching $84 billion. According to Zenith’s data, social media advertising will account for
2019 will be the first year that social media ad spend outperforms print ad spend, says Zenith, with newspaper and magazine ads generating less than $69 billion this year.
SMBs and digital brands driving social ad growth. Zenith attributes the growth across social media ad channels to SMBs shifting and adding budgets in order to take advantage of the targeting and localization capabilities offered by platforms like Facebook.
“Small businesses in the U.S. are spending heavily on social media and paid search, and are fueling much of the global growth of these channels,” writes Zenith.
Facebook reported last Friday that it estimates more than 140 million businesses are currently using its family of apps (Facebook, Instagram, Messenger
Zenith expects social ad spend growth to level-out over the coming years. “
Paid search ad spend tops social. The ad targeting capabilities offered by social networks is enough to help push social into the top three ad channels, but it still falls behind
TV accounts for 29% of global ad spend.
Why we should care. Zenith’s forecasts are based on its own client data (historical ad spend across channels, future budget plans, price negotiations with media owners) combined with local media market conditions and competitor campaign analysis. The media agency’s data underscores how traditional advertising is losing its footing, while digital channels continue to pull more ad dollars from SMBs and brands aiming to reach
By offering sophisticated targeting capabilities and unparalleled reach for businesses of all sizes, social and search platforms have chipped away at traditional advertising sources.