Social media advertising spend increases 114%by
New Kenshoo research shows quarterly global spend on social advertising grew by 114% year-on-year (YoY) in Q2 2015, twice as fast as a year ago.
While social advertising may be considered to be in its relative infancy still, it is already a burgeoning market, with spend on social networks set to break the £1bn mark in the UK alone in 2015, with global spending expected to be somewhere around $23bn.
Kenshoo’s research highlights mobile as a key driver – with smartphone and tablet ad spend up 167% YoY and together now accounting for 63% of total paid social budgets (up from 51% last year).
In paid search the research reveals that quarterly spend increased by 10%, fuelled by growth in mobile ads (71%) and tablet ads (4%), while desktop search spend decreased slightly (-2%).
“Both paid search and social are showing healthy increases in spend and clicks with social obviously showing the much faster growth as it’s a far younger market,” said Rob Coyne, Kenshoo’s managing director for EMEA.
“Existing social advertisers are ramping up spend and getting better results in terms of click volumes despite fewer available impressions, while new social advertisers are also entering the market. Mobile has been the key driver of growth in both search and social, with 36% of revenue from advertiser sales now coming from mobile phones, up from 16% last year.”
Facebook currently dominates the social networks for advertising spend, and eMarketer predicts it to have a stranglehold of nearly 80% of the advertising revenue driven from social by the end of the year.
Mark Zuckerberg’s behemoth recently announced it would be changing the way it charged brands who advertised on its network, in an attempt to offer more applied ROI and value to its advertisers. Advertisers will no longer be charged when users apply ‘social’ clicks to paid-for ads, instead charging solely for external clicks or off-site calls to action, such as ‘shop now’.
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.