Zenith, a media agency owned by Publicis Media, predicts global social media ad spend will grow 20% this year, reaching $84 billion. According to Zenith’s data, social media advertising will account for 13% of total global ad spend and rank as the third-largest advertising channel, behind TV and paid search.
2019 will be the first year that social media ad spend outperforms print ad spend, says Zenith, with newspaper and magazine ads generating less than $69 billion this year.
SMBs and digital brands driving social ad growth. Zenith attributes the growth across social media ad channels to SMBs shifting and adding budgets in order to take advantage of the targeting and localization capabilities offered by platforms like Facebook.
“Small businesses in the U.S. are spending heavily on social media and paid search, and are fueling much of the global growth of these channels,” writes Zenith.
Facebook reported last Friday that it estimates more than 140 million businesses are currently using its family of apps (Facebook, Instagram, Messenger and WhatsApp) every month, “To find new customers, hire employees or engage with their communities.” During the company’s first quarter earnings report call earlier this year, COO Sheryl Sandberg said that Facebook’s top 100 advertisers accounted for less than 20% of the company’s ad revenue. “Our advertiser base is more diverse compared to the same period over last year,” said Sandberg in April, backing up Zenith’s theory that the surge in social media ad spend is a direct result of SMB ad investments.
Zenith expects social ad spend growth to level-out over the coming years. “It’s growth is slowing as it matures,” writes Zenith. The company reports social media ad spend growth will slow from 20% this year to 17% in 2020 and 13% in 2021.
Paid search ad spend tops social. The ad targeting capabilities offered by social networks is enough to help push social into the top three ad channels, but it still falls behind paid search. According to Zenith’s report, paid search ads will take in $107 billion in 2019 and own 17% of global ad spend. This is the first year paid search ads are expected to generate more than $100 billion globally, up 8% from last year.
TV accounts for 29% of global ad spend. TV remains the top-ranking ad channel but is losing momentum. Zenith reports TV ad spend is suffering from “shrinking ratings in key markets,” and that the total spend on TV ads will decline by $2 billion during the next three years, dropping from $182 billion this year to $180 billion in 2021.
Why we should care. Zenith’s forecasts are based on its own client data (historical ad spend across channels, future budget plans, price negotiations with media owners) combined with local media market conditions and competitor campaign analysis. The media agency’s data underscores how traditional advertising is losing its footing, while digital channels continue to pull more ad dollars from SMBs and brands aiming to reach niche audience.
By offering sophisticated targeting capabilities and unparalleled reach for businesses of all sizes, social and search platforms have chipped away at traditional advertising sources.
About The Author
What Will It Take To Drive Content Marketing Forward?
You’re doing everything in your power to craft amazing content.
You sweat over quality, optimize everything to the last keyword, and feed those greedy channel beasts more and more and more.
But the results you get don’t match the effort you put in. What are you doing wrong?
The game has changed. Simply doing the once-right things – and more of them – won’t guarantee wins.
Playing to win now means doubling down on strategy
“The content you create provides no sustainable competitive advantage for your business.”
Robert Rose kicked off Content Marketing World 2022 with that bold statement. Even the most exceptional work will be copied, remixed, reimagined, and reissued by other brands and consumers.
But don’t take that statement as a eulogy for our beloved practice. Instead, celebrate new and different ways of looking at your work, Robert said, starting with your strategy and structure.
Having the right resources (including the strategic roles, teams, and repeatable procedures) lets you fluidly change and evolve all the time.
And that’s where you’ll find your new competitive advantage.
Invest in a remarkable (and human) voice
Take Netflix, for example. The streaming giant made the strategic choice to invest in real, live humans to write the closed caption subtitles for its smash-hit Stranger Things. That choice paid off with the kind of online buzz no brand can buy.
Most streamers use automated transcriptions to help people with hearing difficulties follow what’s happening on screen. But Netflix assigned marketing writers to craft vivid descriptions of the sounds accompanying the Stranger Things action.
The evocative and unsettling words they used (wetly squelching, tentacles roiling) caught the attention of younger viewers – a segment that watches shows with captions on regardless of their hearing ability. Earned media mentions skittered across the web, entangling viewers in a whole new viewing (and reading) experience.
The lesson, Ann said, is that voice can carry your brand’s unique personality, even when your brand isn’t mentioned. Investing in it is a strategic choice that sets your brand apart.
“A warm, relatable brand voice is increasingly crucial. It’s how we need to start developing relationships with our audiences, especially in this world of content abundance,” Ann said.
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Do what others don’t dare
While writing a book about how mobile phones transformed communication, he hit on a unique idea. Why not put his phone number on the cover, so readers could reach out and continue the dialog?
His publishers balked. So, Bonin purchased the rights from them and published the book his way. Since 2016, more than 50,000 readers of Txt Me: Your Phone Has Changed Your Life. Let’s Talk About It have called to create a personal connection with him.
A co-founder of Group Black – a media collective and accelerator focused on advancing Black-owned media properties – Bonin built his groundbreaking marketing career by thinking differently about what others consider impossible.
Bonin offers advice on how to challenge convention into meaningful marketing actions:
- Aspire, but have a plan to see ideas through: While aspiration is a significant first step, you must develop the muscle memory to see your ideas to completion. Allocate the time, resources, and effort to execute the ideas.
- Operate in real-time: The set-it-and-forget-it mentality doesn’t work anymore. Think about how you can change your business to deliver products in real time.
- Be resourceful: Experimenting with content is not about how much money is available. It’s about how well you use the assets, talent, and resources you have.
- Operationalize innovation: Look for models you can reverse-engineer to guide the development of your ideas and create guardrails and structures that make innovation more manageable.
- Be curious: If you build the skill of curiosity, you can foster environments that create change.
- Don’t give up: A no from stakeholders doesn’t mean your idea is bad. It just means it’s not the right fit under the current situation. Keep workshopping it. If all else fails, consider developing it elsewhere or on your own.
Advocate for a clear content career path
People remain the most valuable (and expensive) content marketing assets. So cultivating content marketing careers is one of the most strategic choices an organization can make.
Upcoming CMI research shared at the conference shows most content marketers are at least somewhat satisfied with their current roles. Yet few feel sure about how they’ll grow in those roles. And of those who do have a clear career path, 20% say they’ll have to leave their employer to get there.
“We have to build a career path into what it is we do. There’s no way content becomes a strategic function in the business if we don’t look at this. It will always be just a content factory,” Robert said.
Jessica Bergmann shared how Salesforce did this. Working with the employee success team, Jessica and colleagues documented a career path for content team members to follow to progress from individual contributors to executive management.
Each company should build a path that suits its structure and culture. But Jessica shared some ideas any brand can use to start seeding opportunities and laying a professional path for content team members:
- Advocate for integrated content teams: “It’s important that you show up as one company with one voice. We can’t have all different teams creating content everywhere and showing up with different voices and perspectives,” she said.
- Define content roles and responsibilities clearly: Understand how content-centric teams across the organization collaborate and align their efforts to help content strategy get a seat at the decision-makers’ table.
- Create democratized performance dashboards: Empower company leadership to see each content asset’s performance without asking for it.
- Automate the ordinary: Using your automation tools to reduce time spent performing mundane tasks will allow content teams to focus on creating extraordinary and impactful content experiences.
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Set your vision on meaningful change
Perhaps the most urgent strategic question today is this: How will you create content that leads to a meaningful change in the world?
With trust declining in government and other institutions, audiences now expect brands to work toward something beyond their balance sheet. Robert Rose pointed out in his talk that the subhead for Edelman’s 2022 Trust Barometer is this: “Societal leadership is now a core function of business.”
Mark Harrison brought home the role of content (and individual content practitioners) in this function. A volunteer and entrepreneur who founded sponsorship agency T1 to work exclusively with impactful brands, Mark is committed to making a difference.
“I have a simple personal vision, and that is to create a world of belonging,” he said. “No matter what you look like, what you sound like, or where you come from, you will feel that you belong.”
Mark executes his mission by building what he calls the above-ground railroad, giving the nod to the underground railroad that helped thousands of enslaved people escape to freedom in the United States. The above-ground railroad activates networks of people to bring greater equity and opportunity to those who have been marginalized by society.
Part of that work involves amplifying their struggles and their strengths to those who have the power to increase inclusivity.
“Amplifying voices is not giving your social pages over to somebody that doesn’t look like you. It’s about showing real courage,” Mark said.
Mark shared a brand example that shows how powerful courageous content can be. When Harry Met Santa, a video from Posten Norge, tells the story of a developing relationship between a man (Harry) and Santa Claus. The video ends with a romantic kiss between the two, followed by this closing line: “In 2022, Norway marks 50 years of being able to love whoever we want.”
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How will you make content better for everyone?
These and other Content Marketing World conversations make one thing clear: You have your work cut out for you.
But you also have an opportunity to rethink your content strategy to create something remarkable. That strategy might include investments in:
- Talented creators who help develop your brand’s distinctive voice
- A clear career path that helps you keep your talent
- New and different approaches to content possibilities
- Making a societal impact
What takeaways resonate with you? Where do you plan to focus your strategy for the rest of the year and into 2023? Let us know in the comments.
Cover image by Joseph Kalinowski/Content Marketing Institute
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