eMarketer: Social Ad Spending Will Hit $23.68 Billion Globally This Year
Worldwide total is a 33.5% increase over 2014. Spending in the U.S. and Canada will pass $10 billion this year for the first time, according to the research company.
Advertisers will spend $23.68 billion worldwide to reach consumers on social media in 2015, according to new figures released this week by eMarketer. The total represents an 33.5% increase over eMarketer’s 2014 figure of $17.74 billion and means ad spending on social media will make up 13.9% of the total digital advertising market this year.
EMarketer also predicts that by 2017, social media ad revenue will hit $35.98 billion, 16.0% of the total global digital ad market. According to eMarketer estimates, the pace of global spending growth is slowing, going from 56.2% in 2014, to 33.5% this year, then dropping to 26.3% in 2016 and 20.3% in 2017.
Advertisers in the United States and Canada will remain the top drivers of the market, boosting ad spending 31.0% this year to pass the $10 billion mark for the first time. The total in the Asia-Pacific region will be $7.4 billion and Western Europe will be $4.74 billion. The North American countries also lead in per user spending, laying out $50.42 in ad dollars for each user, compared to $25.26 for Western Europe and $8.04 for Asia-Pacific.
EMarketer estimates show that the U.S. and China will lead social ad spending for the next few years, making up more than half of the global market throughout the forecast period. Advertisers in the U.S. will spend $9.59 billion on social ads this year, up 31% from 2014 and more than double the amount they spent in 2013. By 2017, eMarketer forecasts the U.S. will hit $14.40 billion, nearly 20% of all U.S. digital ad spending. In China, social ad spending will reach $3.41 billion this year and is expected to be $6.11 billion in 2017, or 12.5% of digital ad spending in the country.
Not surprisingly, Facebook will continue to cash the biggest checks from this activity. Marketer estimates that the social network will $15.50 billion in ad revenue in 2015, 65.5% of all social network ad spending worldwide, a slight increase from the 64.5% market it owned in 2014. Twitter is expected to take in $2.09 billion in ad revenue in 2015, 8.8% of the worldwide market.
Read the full report, including detailed charts, at eMarketer.