Social media ads to hit $50 billion by 2019
Social media ads to hit $50 billion by 2019 -Zenith
December 4, 2016
LONDON (Reuters) - The amount of money spent on
advertising on social media is set to catch up with newspaper ad revenues by
2020, a leading forecaster said on Monday.
The rapid expansion of social media platforms on mobile
devices, as well as faster internet connectivity and more sophisticated
technology, has triggered a huge shift in the way many people get their news.
Advertising agency Zenith Optimedia, owned by France's
Publicis, predicts global advertising expenditure on social media will account
for 20 percent of all internet advertising in 2019, hitting $50 billion and
coming in just one percent smaller than newspaper ads. It expects social media
to overtake newspapers comfortably by 2020.
"Social media and online video are driving continued
growth in global ad spend, despite political threats to the economy,"
Jonathan Barnard, head of forecasting at Zenith, said.
The media industry has been convulsed by the rapid shift
in advertising trends in recent years, with firms moving their ad budgets from
traditional sources such as newspapers to websites found on computers and
mobile phones.
Marketers are increasingly directing their spending to
social media sites where ads blend into users' newsfeeds on platforms such as
Facebook and Snapchat proving more effective than interruptive banner formats.
Zenith's report forecasts that global advertising
expenditure will grow 4.4 percent in 2017, the same rate as in 2016, which it
said would be a strong performance given that big events like the Olympic
Games, Britain's EU referendum and the U.S. presidential election boosted
advertising this year.
Online video advertising is also rapidly growing and set
to total $35.4 billion across the world by 2019, fractionally ahead of the
amount spent on radio advertising but still far less than television.
Global spending on advertising has been stable since 2010
the report showed, although growth has declined in the Middle East and North
Africa. It was expected to continue to grow strongly in China and much of Asia.
(Reporting by Adela Suliman; Editing by Susan Fenton)
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