Social ad spending is on the rise and particularly retailers
will be funneling growth into this channel. A 2019 November Study by Smartly.io
which is a social media advertising platform shows that more than half (52%) of
US retail marketing teams polled said that they were planning to spend more on
social advertising in 2020 than they did last year. Moreover, they will also be
expanding their talent in order to better manage social advertising. It is no surprise that Facebook is receiving a
large share of these ad dollars. According to the article “Nearly every
marketing team surveyed (96%) said that they bought social media ads on that
platform.” Below, I have posted graph
that shows where US marketers are currently buying their social media ads. Facebook
is the leader at 96% followed by LinkedIn at 76%, Twitter at 75%, Instagram at
59%, Snapchat 33% and Pinterest 16%. I
thought that Instagram would be a higher percentage, but it is not. I think
this will increase over time though.
Of course, there is a reason for this increase in ad spending. The percentage
of users who bought product directly through social media channels grew each
quarter from Q4 2018 and Q3 2019 rising 13% to 21%, respectively. These companies want to start tapping into this growth wave. Instagram
will continue to be a popular platform since it allows customers to discover
new brands and create awareness. Sales through these channels remains relatively
low compared to e-commerce via mobile and the web. It will be interesting to see how this plays
out since more brands continue to advertise heavily on social media platforms
like Facebook and Instagram. I also believe it depends on the type of business
that you have as well, which would dictate which platforms to best spend your
ad dollars.
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