What happened: Data from OnlyAccounts.io reveals that brands worldwide
have spent $673B on social media ads since 2018. According to Statista, brands spent $73.2B on social media ads in 2018, and that figure rose to $132.7B in 2020 and hit $180.9B in 2021, a 36% increase YoY.
Statista predicts that spending on social media advertising will surpass $207B this year. This significant increase in ad spending translates to increased advertising spending per internet user. Data from Statista
Digital Market Insights projects that social media spending per internet user will hit more than $40. According to DataReportal, as of April 2023, there were 5.18 billion internet users and 4.8 billion social media users
worldwide.
Why it matters: Shopping habits have changed drastically over the years, especially among Gen Zers and millennials. Data from Yes Lifecycle Marketing shows that 74% of millennials' purchases are influenced by social media. For Gen Zers, that figure is 80%. This means brands must boost their social media presence to stay relevant to the U.S.'s largest consumer groups: Millennials and Gen Zers, who comprise over 137 million members of the U.S. population.
Where to see the impact: The study by Yes Lifecycle Marketing highlights preferred social media platforms for each generation. Instagram, Snapchat, and YouTube are the most popular among millennials Gen Zers, while Baby Boomers and Gen X tend to use Facebook. According to Marketing Charts, 41% of Gen Zers rated Instagram as their platform of choice for keeping up with the brands. Using social media platforms to promote a brand, specifically Instagram, enables marketers to target more specific demographics and drive a higher engagement rate than other social media platforms. It is also important to note that Gen Zers and millennials are regarded as the most socially conscious generation, so it makes sense that they would turn to Instagram for following brands, as this social media platform enables users to write comments on social media posts, thus giving users a better feel for the overall public opinion on a brand, which promotes greater transparency. This cannot be achieved with traditional TV or print ads.