MARKETING
Social media ad spend to surpass print for first time
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
MARKETING
Trends in Content Localization – Moz
Multinational fast food chains are one of the best-known examples of recognizing that product menus may sometimes have to change significantly to serve distinct audiences. The above video is just a short run-through of the same business selling smokehouse burgers, kofta, paneer, and rice bowls in an effort to appeal to people in a variety of places. I can’t personally judge the validity of these representations, but what I can see is that, in such cases, you don’t merely localize your content but the products on which your content is founded.
Sometimes, even the branding of businesses is different around the world; what we call Burger King in America is Hungry Jack’s in Australia, Lays potato chips here are Sabritas in Mexico, and DiGiorno frozen pizza is familiar in the US, but Canada knows it as Delissio.
Tales of product tailoring failures often become famous, likely because some of them may seem humorous from a distance, but cultural sensitivity should always be taken seriously. If a brand you are marketing is on its way to becoming a large global seller, the best insurance against reputation damage and revenue loss as a result of cultural insensitivity is to employ regional and cultural experts whose first-hand and lived experiences can steward the organization in acting with awareness and respect.
MARKETING
How AI Is Redefining Startup GTM Strategy
MARKETING
More promotions and more layoffs
For martech professionals salaries are good and promotions are coming faster, unfortunately, layoffs are coming faster, too. That’s according to the just-released 2024 Martech Salary and Career Survey. Another very unfortunate finding: The median salary of women below the C-suite level is 35% less than what men earn.
The last year saw many different economic trends, some at odds with each other. Although unemployment remained very low overall and the economy grew, some businesses — especially those in technology and media — cut both jobs and spending. Reasons cited for the cuts include during the early years of the pandemic, higher interest rates and corporate greed.
Dig deeper: How to overcome marketing budget cuts and hiring freezes
Be that as it may, for the employed it remains a good time to be a martech professional. Salaries remain lucrative compared to many other professions, with an overall median salary of $128,643.
Here are the median salaries by role:
- Senior management $199,653
- Director $157,776
- Manager $99,510
- Staff $89,126
Senior managers make more than twice what staff make. Directors and up had a $163,395 median salary compared to manager/staff roles, where the median was $94,818.
One-third of those surveyed said they were promoted in the last 12 months, a finding that was nearly equal among director+ (32%) and managers and staff (30%).
Extend the time frame to two years, and nearly three-quarters of director+ respondents say they received a promotion, while the same can be said for two-thirds of manager and staff respondents.
Dig deeper: Skills-based hiring for modern marketing teams
Employee turnover
In 2023, we asked survey respondents if they noticed an increase in employee churn and whether they would classify that churn as a “moderate” or “significant” increase. For 2024, given the attention on cost reductions and layoffs, we asked if the churn they witnessed was “voluntary” (e.g., people leaving for another role) or “involuntary” (e.g., a layoff or dismissal). More than half of the marketing technology professionals said churn increased in the last year. Nearly one-third classified most of the churn as “involuntary.”
Men and Women
This year, instead of using average salary figures, we used the median figures to lessen the impact of outliers in the salary data. As a result, the gap between salaries for men and women is even more glaring than it was previously.
In last year’s report, men earned an average of 24% more than women. This year the median salary of men is 35% more than the median salary of women. That is until you get to the upper echelons. Women at director and up earned 5% more than men.
Methodology
The 2024 MarTech Salary and Career Survey is a joint project of MarTech.org and chiefmartec.com. We surveyed 305 marketers between December 2023 and February 2024; 297 of those provided salary information. Nearly 63% (191) of respondents live in North America; 16% (50) live in Western Europe. The conclusions in this report are limited to responses from those individuals only. Other regions were excluded due to the limited number of respondents.
Download your copy of the 2024 MarTech Salary and Career Survey here. No registration is required.
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