Social media spending is about to skyrocket, producing huge revenues in the U.S., according to a newly published infographic from Invesp. Ad revenues are expected to go from $5.1 billion (last year) to $15 billion in 2018, a 194% increase.
And the mobile sector is expected to see even more growth, transforming from a $1.5 billion market to a $7.6 billion market in 2018 (a 38.3% growth rate).
Those are some big numbers. And, if you’re in the business of ad buys and social media spending (like me), they’re exciting. But these big numbers and exciting prospects should come with a warning label…
Social Ad Spending Will Force Marketers to Adapt
Many marketers will be forced to step into the Social Age with this surge in spending. If you think all marketers are already buying ads on social media, think again. The infographic below estimates that 14% of Fortune 500 companies spend nothing on social ad buys, and 10% spend less than $1,000. To phrase it another way…
1 out of 4 top corporations in the U.S. spends virtually nothing on social media ads.
With their competitors increasing their social ad buying, these Fortune 500 companies will soon be feeling the pressure to hold ground in the social spaces (Facebook, Twitter, Instagram, Pinterest, etc.).
A Word of Caution on The Social Media Spending Craze
But I want to offer a word of caution at this point. As I’ve written before, your social media strategy (which encompasses ad buying) is not about the platform, but about the people.
- People don’t care about the social media platforms your company uses. Platforms are only a means to an end.
- People don’t care about your message. They care about feeling a connection.
- People aren’t interested in your business (as an intrusive presence into their space). They’re interested in other people.
So, if social media spending does increase as predicted, bear in mind that buying more ads simply to keep up with the Joneses is not a viable strategy. Also, buying ads without thoughtful consideration of content and placement will do no one any favors – on either end of the ad.
The Current Cultural Communication Climate > Platforms
We live in the Social Age. “Social” refers to the cultural communication climate – the way we receive information. It doesn’t refer to specific “social media” platforms like Facebook or Instagram. As we see ad spends increase, remember that the way you communicate (inbound v. outbound) and the message you present (value-oriented v. sale-oriented) will always be more important than the platform you’re using or the size of your social ad budget.
Social Media Spending Infographic
Check out the infographic below, and feel welcome to jump in the comments section.
Infographic by- Invesp