Liz’s thoughts on…
Social Ad Revenue is Set to Double by 2021 Business Insider
Social media represents one out of every five minutes spent online in the U.S., yet organic reach is on life support, at best. Brands must pay to play in order to get reach and, according to new estimates from BI Intelligence, social advertising revenue in the U.S. is set to surpass $30 billion by 2021.
This rise in social ad revenue is primarily due to the increasing amount of time people spend on social media, especially on mobile. Fun fact: more than 20% of all time spent on digital media on mobile devices in the U.S. occurs on Facebook’s properties (Facebook, Instagram, Messenger, and WhatsApp). Needless to say, Zuckerberg will play a huge role in the surge of social ad revenue over the next five years.
While a social advertising strategy is the new normal, brands cannot neglect their organic social media strategy. Social networks are still a goldmine of untapped consumer insight and opportunity. There’s no reason why brands can’t use social media as a way to transform their businesses; they just have to think more strategically than three years ago. Consumers habits have become a mashup of devices, platforms and content so it’s essential to execute programs that work across channels. And the content that’s created should be customized to the strengths and nuances of each social platform in the mix.
If you haven’t already, now is the time to get started with social media advertising. Consider a recent program Planit launched for a client in the pool and spa category. Through a strategic mix of organic content and paid advertising, we generated an average click-through-rate of 6%, almost 5 times higher than the global average. When implemented properly, the results are powerful in a world of social media-empowered consumers.