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Social Media Advertisement Global Market Report 2022

Social Media Advertisement Global Market Report 2022

  • September 2022
  • 175 pages
  • ID: 6320338
  • Format: PDF
  • The Business Research Company


Table of Contents

The major players covered in the social media advertising market are Facebook, Inc., Twitter, Pinterest, Inc., LinkedIn Corporation, Google LLC (YouTube), Snap Inc. (Snapchat), Tencent (QQ, Qzone, and WeChat), ByteDance Ltd. (Tik Tok), Advance Publications, Inc. (Reddit), and Sina Corp (Sina Weibo).

The global social media advertisement market is expected to grow from $111.97 billion in 2021 to $130.53 billion in 2022 at a compound annual growth rate (CAGR) of 16.6%. The market is expected to grow to $201.36 billion in 2026 at a compound annual growth rate (CAGR) of 11.4%.

The social media advertising market consists of sales of social media advertising by entities (organizations, sole traders, partnership) that are promotional activities to connect with the audience to build the brand, increase sales, and drive website traffic on social media.Advertising refers to communication with the consumers of a product or a service.

Social media advertising or marketing includes generating and sharing content on social media platforms such as Facebook, Twitter, and Instagram to accomplish marketing and branding goals.

The main types of social media advertisement are microblogging, photo sharing, video sharing, and other types.Microblogging is a combination of instant messaging and content production.

The devices used are mobile, personal computers, or laptops. The various end-user industries include healthcare, automotive, retail, telecom, BFSI, and other end users.

The North America market was the largest region in 2021.The Asia Pacific is expected to be the fastest-growing region in the forecast period.

The regions covered in social media advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.

Growing internet penetration coupled with increasing social media users contributed to the growth of the social media advertising market.The tremendous growth in the number of social media users worldwide is encouraging advertisement and marketing companies to focus on social media platforms to advertise their products and services.

For instance, according to TheNextWeb, a Netherlands-based media company in January 2019, internet users across the globe were 4.38 billion with 57% penetration in the total population in 2019. Moreover, social media users increased to 3.48 billion in January 2019. Therefore, rising internet penetration together with the growth in the number of social media users across the globe is projected to propel the revenues for the social media advertising market over the forecast period.

Stringent regulations imposed by the government of various countries are expected to limit the growth of the social media advertising market in the coming years.The stringent regulations imposed by regulatory bodies make it difficult for a social media advertising company to operate and function smoothly.

For instance, in May 2019, lawmakers in Singapore proposed stringent regulations to control fake news published on social media and internet platforms, which in turn is likely to impact the revenues generated by these channels.This move is expected to stimulate India to introduce similar regulations.

This scenario is projected to hamper the expansion of the social media advertising market over the upcoming years.

The advancement in technology is a major trend in the social media advertising market.Social media is likely to experience an increase in the adoption of technologies such as virtual reality (VR) and augmented reality (AR).

These technologies help a social media advertising company enhance its product appearance to attract more users.For instance, Sephora, a France-based retail company has incorporated AR features on its Facebook page to enhance user experience.

Through this, a user can try different products and know if they work. This advancement will draw more audiences and affect social media advertising positively.

In December 2019, Sprinklr, a US-based software company has acquired the social advertising business of Nanigans for an undisclosed amount.Nanigans social advertising business is a perfect complement to Sprinklr’s platform for customer experience management.

This acquisition is expected to be the company’s definitive powerhouse in brand social advertising and managing annual ad spending of $1.5 billion on social media channels such as Facebook, Twitter, and Instagram. Nanigans is a US-based performance advertising software company.

The countries covered in the social media advertising market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.

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