The huge growth in social ad revenues and its implications for a digital marketer

by Guna Nadar - 9/30/2015 4325 Views

Take advantage of the organic reach through social Ads

According to a recent report by eMarketer, Facebook will capture nearly 65% of advertisement revenues generated from all social networks by the end of 2015. The social spend of digital marketers across the globe has taken a faster pace today – much more than it was predicted. By the last quarter of 2015, the total advertisement spending on social networks will collectively reach a humongous amount of $25.14 billion. Previously, the forecast was $23.68 billion. The difference accrues from the sudden increased spending by top players in the social advertisement industry. It is however more important to understand that these successful brands have recognized the growing penetration of social networks in the consumer decision making process and subsequently the revenues they account for. Investment in social networking ads is an investment.

In December 2014, SalesForce reported 70% of the top brands have already been working on increasing their budgets on social ads, including platforms like Facebook, Instagram (now a part of Facebook), SnapChat and Twitter. By 2018, most brands will be allocating as much as 11.7% of their marketing budgets in social ads and analytics. This increase is aimed at the advertiser’s desire to be able to reach more people, specifically through mobile.

Well, what has triggered this change in trend? Last year, in 2014, Facebook reported that their user base has been increasing by as much as 22% every day. In the same period, the number of users active on mobile devices was an astounding 49%. As the time spent of social networks like Facebook continues to grow, it is obvious that brands would be looking to increasing their outreach through increased spending on social ads.

The penetration of mobile and social traffic growth

The difference in ROI presented to brands in desktop and mobile versions of social network is quite interesting. CTR rates have been very high in the past few years on mobile platforms, especially for Facebook newsfeed advertisements. This also makes it clear that digital marketers of today would see a significant ROI on mobile ad investments. While these numbers would continue to evolve over time, social networks will always be a target platform, at least for some time in the near future. The numbers also speak that YouTube will be another outliner, but it will impact both mobile and desktop searches.

Why content matters?

Social advertising has been part and parcel of Facebook’s existence. It has evolved to a position where most brands want to be a part of the ‘revolution’ and prefer to engage in their customers and win fans. The increase in advertisement spend is an obvious action. However, it is not just the penetration of Facebook that has been attracting brands but also the several measurable tools that Facebook provides. This allows marketers target its audience, either to boost underperforming content/posts or reach out to the audience at a more personal level.

Social platforms give digital marketers the tools to optimize content such that it positively resonated with the demands of the customers. Advertisement campaigns that have been supported by analytics get the key advantage of working on a dozen of performance factors and metrics that help build a social strategy. Moving into Facebook ad marketing is just about the organic reach anymore but strategic content promotion and publication.

Facebook and other social networks contents and products continue to become more sophisticated. There has been a strong focus on new advertisement tools and needless to say, Facebook has been leading the pack.

What should you be doing?

If you have been interested in Facebook just because it allows creating free pages and groups, ditch the idea. It is necessary that growing brands invest in smart advertising and it comes with a price. Dig into audience segmentation and other means of targeting to get the most benefits out of your social spending. Take advantage of the organic reach, be it Instagram or Twitter. It is necessary that you continue to build unique content – content that inspires and impresses the audience. Leverage your white paper as Infographics, videos, slides and other platforms of presentation. Social audience are themselves an important source of information and moderated strategically can take your brand to the highest levels.

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Social Media

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huge growth in social ad revenues

About Guna Nadar

Brief Info about Guna Nadar +

I mostly write technical aspects and not much into creative writing. For the past decade I worked along with top notch SEO & Internet Marketing professionals which naturally lured me into the world of Search Engines. When I am not writing I read from comics to philosophy.Antiques, Fishing, hunting are my passions. Currently I am working on Google Penalty protection and .... more info about the author