A recent report compiled by Finaria has revealed that after a sharp decline in March, global digital ad spending has seen a robust growth as millions of consumers shifted from their regional mom-and-pop stores to shop online amid the pandemic.
In its report based on Statista market and consumer data platform, Finaria expects social media ads, one of the fastest-growing segments of the digital advertising industry to continue its growth at a year-over-year (Y-o-Y) rate of 15 percent and touch $105 billion in spending in 2021.
68 percent growth in 3 years
Figures derived from Statista Global Consumer Survey show that global brands and media buyers spent $54.4 billion on social media advertising worldwide in 2017, the spending rose by 57 percent to reach $85.7 billion over the next 2 years.
Market reports reveal that even though the COVID-19 pandemic caused a deep drop in the global digital advertising industry between January and March 2020, the sector picked up pace in the second and third quarters of the year.
Subsequently, the global social media ad spending is expected to witness a 6.5 percent growth compared to 2019 figures to reach hit $91.3 billion this year.
According to the Statista data, the social media advertising segment is set to witness the second-largest increase in spending in 2021, growing by $13.7 billion in a year. Only the search advertising segment is expected to see a more significant boost in spending and grow by 16 percent YoY to $172.2 billion in 2021.
This trend is expected to continue in the following years, with social media ad spending growing to $124.6 billion by 2025.
Mobile to reign supreme
Figures show that the average ad spending per social media user is expected to amount to $31.90 in 2020. This figure is expected to grow and reach $36.67 in the next 5 years.
Statista data reveals that while 71 percent of the total social media ad spending was generated through mobile devices, mobile advertising consistently grew in the last three years to hit a 79 percent market share in 2020.
This figure is expected to reach 80 percent next year and 83 percent by the end of 2025.