Social Media Advertisement Global Market Report 2024

The social media advertisement market size has grown rapidly in recent years. It will grow from $198.78 billion in 2023 to $226.73 billion in 2024 at a compound annual growth rate (CAGR) of 14.1%. The growth observed in the historical period can be attributed to factors such as the increasing penetration of the internet, the rise of social media platforms, the capabilities of targeted advertising, the proliferation of mobile devices, and the utilization of data analytics and insights in social media advertising.

The social media advertisement market size is expected to see rapid growth in the next few years. It will grow to $362.64 billion in 2028 at a compound annual growth rate (CAGR) of 12.5%. The anticipated growth in the forecast period can be attributed to the increasing influence of influencer marketing, the dominance of video content, the integration of e-commerce, the globalization of brands, and the continuous rise in user engagement. Key trends expected during this period involve the integration of social commerce, a focus on personalization and data privacy, the implementation of cross-platform campaigns, the emergence of niche platforms, and an emphasis on social responsibility and purpose-driven advertising.

The expansion of the social media advertising market is attributed to the increasing internet penetration and the growing number of social media users. The surge in social media users worldwide has prompted advertising and marketing companies to prioritize social media platforms for promoting their products and services. As of November 2022, the International Telecommunication Union reported that the global Internet user population is projected to reach 5.3 billion, constituting 66% of the overall population. This growth rate saw an increase from 5.1% in 2020–2021 to 6.1% in 2021. Additionally, there are currently 4.59 billion social media users worldwide, as indicated by Oberlo, underscoring the significant role of social media platforms in advertising strategies. Therefore, the upward trajectory in internet penetration, coupled with the expanding social media user base, is expected to drive revenues in the social media advertising market over the forecast period.

The rising popularity of video content on social media platforms is anticipated to fuel further growth in the social media advertising market. Video content, characterized by moving images accompanied by sound, serves as a potent tool for advertising on social media due to its dynamic and visually engaging nature. In April 2023, HubSpot reported that people spend an average of 17 hours per week watching internet videos. This trend highlights the effectiveness of video content in capturing audience attention and enhancing brand visibility on social media platforms. Hence, the increasing prevalence of video content on these platforms is a key driver for the social media advertising market.

Technological advancement is a prominent trend shaping the social media advertising market. The adoption of technologies such as virtual reality (VR) and augmented reality (AR) is expected to grow, enhancing the appearance of products in social media advertisements to attract more users. For example, Sephora, a France-based retail company, has incorporated AR features on its Facebook page, allowing users to virtually try different products. This technological advancement is poised to engage a broader audience, positively impacting social media advertising.

In March 2023, the UK-based communication company WPP completed the acquisition of Obviously for an undisclosed amount. This strategic move aligns with WPP's objective to broaden its capabilities within the influencer marketing sector and reinforce its offerings in data and social media. Obviously, headquartered in New York, operates as a social influencer marketing agency.

In December 2021, Adobe Inc. acquired ContentCal, a social media marketing startup based in the UK, for an undisclosed amount. This acquisition strengthens Adobe's capabilities in social media marketing, emphasizing the industry's focus on innovative solutions for effective advertising.

Major companies operating in the social media advertisement market report are Google LLC, Alphabet Inc., Facebook Inc., VK Company Limited, Tencent Holdings Limited, ByteDance Ltd., LinkedIn Corporation, Naver Corporation, Snap Inc., Twitter Inc., Sina Corporation, Pinterest Inc., Advance Publications Inc., AOL LLC, Yelp Inc., MySpace Inc., Renren Inc., Discord Inc., New Work SE, Hootsuite Inc., Quora Inc., Brandwatch Ltd., Nextdoor Inc., Hi5 Networks Inc., Automattic Inc., Foursquare Labs Inc., Meetup Inc., Meta Platforms Inc., Sprout Social Inc., Buffer Inc., Telegram Messenger LLP, Ifwe Inc., Friendster Inc., Socialbakers a.s.

North America was the largest region in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the social media advertisement market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the social media advertisement market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The primary types of social media advertisements include microblogging, photo sharing, video sharing, and other formats. Microblogging is characterized by a combination of instant messaging and content production. The devices used for social media advertising are typically mobile devices, personal computers, or laptops. Various end-user industries, such as healthcare, automotive, retail, telecom, BFSI (Banking, Financial Services, and Insurance), and others, engage in social media advertising.

The social media advertisement market research report is one of a series of new reports that provides social media advertising market statistics, including social media advertising industry, global social media advertising market size, regional shares, competitors with a social media advertising market share, detailed social media advertising market segments, market trends and opportunities, and any further data you may need to thrive in the social media advertising industry. This social media advertising market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The social media advertising market includes revenues earned by entities by providing advertising services through social media such as instagram, facebook, messenger ads, stories ads, and twitter ads. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.