American social media ad spends will top $50 billion for the first time this year, according to TradingPlatforms.com. They lead what has been a worldwide rise.
The assessment’s parameters include all ad revenue generated by social networks such as Facebook, Instagram, or LinkedIn but doesn’t include advertising ads and subscription fees.
The total US spend is projected to be $56.2 billion, the world’s largest and nearly double second-place-China’s $28.8 billion. The $56.2 billion represents a 16.7 percent increase. Over the next four years expenditures are expected to rise to $75.7 billion, a CAGR of 7.8 percent.
Most social media ad revenue, 83.9 percent in the US case, is from mobile and that share will rise to 85 percent by the end of this year. More gains could be on the way as 15 million more Americans are projected to join social media by 2025.
Facebook is projected to have 228.6 million American users by the end of 2021, with LinkedIn at 187.6 million. Instagram rounds out the nine-digit club at 125 million.
“The monetization of social media and communication apps is still developing, making its growth potential for the coming years a very positive one,” TradingPlatforms.com editor Rex Pascual said. “Despite the user base of some platforms nearing max saturation levels in some markets, enhancements in the integration of online shopping and payment solutions will help ensure a lucrative future for social media as the data shows.”