Social media users now account for two-thirds of all global internet users, making social media platforms an efficient and cost-effective channel for communicating with and marketing to engaged consumers. For advertising professionals, knowing the following social media marketing statistics can help brands anticipate inevitable changes to the social media landscape and adapt their digital ad strategies to maximize marketing efforts.
[Tweet “In 2016, $3.2B will be spent on Instagram marketing alone.”]
Social media marketing growth is reflected in digital marketing growth, contributing nearly 20% to domestic digital advertising’s $60 billion in total revenue (AdAge). Growing from the previous year’s $7 billion in spending, social media marketing becoming an essential advertising tool for businesses. Growth in social media can be attributed to the broad global consumer audience, 78% of which are influenced in some way by social media (PwC).
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Social media usage will increase in the coming years, and consumer habits are expected to develop on these platforms. For instance, 46% of Millennials rely on social media when making a purchase online (Marketing Sherpa). As expected, the growth in social media will continue, with forecasted ad spend reaching $14 in 2018 (Business Insider).
Instagram has been cited by one-third of U.S. teens to be their most important social network (Wall Street Journal). With a large, trendsetting audience and increasing options for advertising, it is little wonder that Instagram is predicted to bring in $3.2 billion in ad revenue for Facebook (Bloomberg). In mobile alone, Instagram ad revenue is expected to reach $2.81 billion worldwide in 2017 (eMarketer).
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Social media plays a significant role in marketers’ responsibilities to drive sales, as 93% of marketers were found to use social media for business (The Fast Company). Furthermore, a majority of marketers who have used social media for at least two years has reported that social media has improved sales (Social Media Examiner). The emphasis of social media marketing strategy is reflective of how social media reviews influence 67% of consumers in their shopping behavior (PwC).
As social media platforms are growing and marketers are experimenting with new strategies, over 90% marketers find that their time spent on social media is well invested (Social Media Examiner). Nearly 80% of marketers also found that spending at least six hours per week on social marketing led to increased traffic and increased brand recognition (Social Media Examiner).
Within social media marketing, 90% marketers are most concerned with engagement and tactics (Social Media Examiner). A study by Marketing Week found that 78% of marketers use brand engagement as an investment metric, and 57% use it as a way to prove the worth of marketing to a business. Social media platforms are looking to meet advertisers’ expectations on increasing engagement by attracting audiences with user-generated content (AdWeek, Facebook). In particular, Facebook has been known to extensively collect data on its users (Facebook, US News).
Several studies have shown that people who are loyal to a brand drive more sales and traffic as compared to a regular customer (Inc). Additionally, studies show that brand loyalty can be bolstered when it provides relevant and popular content to consumers and appears on various platforms and offer applications on social media (Science Direct). This explains why social media is being used by nearly 70% of marketers to build a fanbase and collect market insights (Social Media Examiner). Social media campaigns that are built on a loyalty frameworks better align with their consumers’ values, ideals, behaviors, and identities (Think with Google).
Live video has been dominating social media platforms. With new technology and marketing tools now widely available, at least a half of all marketers are considering incorporating live video into their social media strategy (Social Media Examiner). Video ads that are not live, however, still remain popular; 12% of marketers having already purchased autoplay video ads on Facebook and an additional 57% expect to do so within the year (eMarketer).
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Facebook and YouTube hold the tops spots for future social media marketing plans, with 63% of marketers planning to increase activity on the platforms (Social Media Examiner). Facebook has over 3 million active advertisers, with more than 70% lying outside of the U.S. (Facebook). Moreover, a study by L2 found that only 8% of brands do not have an advertising budget for Facebook, as opposed to one-third of brands that do not have a budget for Twitter (L2). YouTube, on the other hand, has monetized over $2B for its users, demonstrating the platform’s incredible ability to convert content to advertising dollars (YouTube).
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While Snapchat is largely unused in social media marketing, it offers huge potential for marketers. Over one-third of teens and young adults consume video content on Snapchat, prompting 28% of marketers to want to learn more about Snapchat’s capabilities (eMarketer, Social Media Examiner). While only 5% of marketers are currently using Snapchat, brands should consider Snapchat marketing an essential aspect of future social media marketing strategies.
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