Social network ad spend growth
will slow in 2015: report
In 2015, the global ad spend on
social networks is expected to increase 29 percent and reach $19.8 billion,
down from a 41 percent growth rate in 2014, according to a new report from
Strategy Analytics.
The United States leads with the
largest share of global social network ad spend at 41 percent for a total of
$6.2 billion, which is a 35 percent increase year-over-year. U.S. marketers
also spent the most social network user in 2014 at $31.37, a number that is expected
to grow 27 percent in 2015 for a total of $39.84
“Mobile social network space has
definitely grown in the last couple of years and it is where most of
advertising dollars has been spent within social network space and where it
will continue to occur,” said Leika Kawasaki, author of the report and an
analyst at Strategy Analytics.
“For example, when looking at
Facebook’s mobile advertising revenues, in 2014 majority 63 percent, or $7.2
billion, of Facebook ad revenues came from mobile, while in 2011 mobile ad
revenue was zero,” she said. “Since the launch of Facebook mobile ad strategy
in 2012, it has gradually grown.
“Facebook mobile ad revenue has
grown from accounting for 11 percent of total ad revenue in 2012 to 45 percent
in 2013 to 63 percent in 2014.
“This shows us a trend that will
continue as users continue to spend more time on mobile devices than desktops.”
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