Facebook Leads the Way in Social Ad Spending

Hanna Walther, Ytel |  

Although the baby brand Instagram is slowly creeping into the market for ad spend, its parent brand Facebook is still far away the leader in social ad spending. With 1.5 billion profiles and growing on the Facebook network, it's really no surprise that two out of every three ad dollars spent in social media go to the elephant in the room.

Facebook Gets Strong Majority of World's Social Ad Spending

Although the baby brand Instagram is slowly creeping into the market for ad spend, its parent brand Facebook is still far away the leader in social ad spending. With 1.5 billion profiles and growing on the Facebook network, it's really no surprise that two out of every three ad dollars spent in social media go to the elephant in the room.

Facebook Gets Strong Majority of World's Social Ad Spending

It is also no surprise that Facebook far surpassed its earnings estimates in the second quarter of 2016, because the momentum that it set from the inception of its IPO has yet to slow down. Even as marketers and search engine specialists alike try to focus attention on localized marketing campaigns that feature indirect marketing and content creator driven ads, the majority of companies are still interested in the broad awareness that Facebook offers.

Facebook Reduces Organic Reach

A significant portion of the business community's response to every ad program that Facebook rolls out is engineered, at least according to the findings of many online marketing industry watchdogs. It’s no secret that Facebook is limiting the potential that organic posts have on the platform; you can expect anywhere from 2 to 10 percent of your organic audience to see posts shared on a Facebook business page, with this number is decreasing over time, as well. 

The fact that every organic post serves to saturate the eyes of the consumer is no help to the organic marketer as well. The only answer is really to boost the posts that you really want seen, and this means invoking some part of the Facebook ad program, no matter how small.

Facebook Provides a Broad Base

As large as the use base of Facebook is, and even with the millennial generation opting out of Facebook for Instagram, Twitter and Snapchat, Facebook continues to expand its userbase. Contrary to what many marketing watchdogs might have you believe, millennials are hardly the only audience worth serving on the Internet. They garner the most attention, but older people with higher income households are finding their way to Facebook to bridge the gap. When an older person with an expendable income wants to get involved with social media, the platform they typically choose is Facebook, and Facebook's native ads immediately take advantage of this fact.

Facebook also continues to expand its user base in emerging markets. The 1.5 billion profiles seems like a huge number, but the world is hardly saturated by Facebook or any other online marketing platform yet. Markets such as India, Brazil, Ethiopia and Colombia are still chock full of opportunities for new consumers around the world.

The Future of Social Ad Spending

Because of smart moves in the world of marketing and politics, Facebook is uniquely positioned to take advantage of new markets around the world as prime mover for ad space. This ensures that Facebook will continue to receive the bulk of ad spending from around the world, even if its share of the US user base decreases over time due to new competitors, other stakes, and lost users. Instagram also drives Facebook ad spending; another reason not to count Facebook out of the race anytime soon.

Sources: Hubspot |  Business Insider

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About The Author

Hanna Walther, Ytel

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Hanna manages Ytel's Communications strategy and has worked in Marketing for five years. She has a Master's in Communications and is passionate about connecting customers and businesses by building authentic relationships online.


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