Social media ad spending surged 33 per cent globally last year and the growth continues. Brands are on track to spend $US23.68 billion this year, according to new figures from eMarketer.
By 2017 the researchers say that figure will further balloon to almost $36 billion and represent 16 per cent of all digital ad spending.
In a market like Australia the implications are significant. Google and Facebook already take a majority of the digital ad dollars in a market where digital advertising will reach a majority of total spend long before the end of the decade based on current projections.
And remember, services like Pinterest, Tumblr and Twitter are only just getting started in Australia.
That will leave traditional publishers, free to air, and radio businesses fighting over the scraps.
According to the eMarketer report, “Advertisers in the US and Canada place a premium on social media and will ramp up paid spending on social networks 31.0 per cent this year to pass $10 billion for the first time. Social network advertising in Asia-Pacific will total $7.40 billion, with Western Europe the third-largest region at $4.74 billion.”
The researchers also note however that the drop-off in spending to the other three major world regions is steep, “… with Latin America reaching only $680 million in 2015, while Central and Eastern Europe and the Middle East and Africa lag further behind.”
This article originally appeared in www.which-50.com