US social media advertising revenue is set to increase at a CAGR of 25.7% from $8.2 billion in 2014 to $20.5 billion by the end of 2018. This represents the largest year-over-year growth in value terms, with brands adding over US$2 billion to social media advertising spending in 2014 over the previous year. This growth is driven largely by increase in mobile and native advertising.
During 2014–2018, US social display ad revenues are expected to grow from US$6.0 billion to $13.5 billion; US native social advertising will increase to $8.8 billion from $3.2 billion. This increase is driven primarily by Facebook and Twitter’s social mobile ad revenues in the US. By 2018, it is expected that four-fifths of social media ad spend will be on mobiles.
The higher social media ad spend is a testimony to the fact that US adults are spending an increasing amount of their time on digital and social media. Over the past year, Americans have increased the time they spend on social networks, watching videos online, emailing, reading or writing blogs, and playing online games. Consumers in the US are spending almost a quarter of their total time on Internet on social networks and blogs. Marketers are taking note of this trend and increasingly incorporating social media as part of their marketing campaigns. According to marketers social media not only helps them drive sales but also leads to increase in brandrecognition, improved brand loyalty, decreased marketing costs, richer customer experiences, and better market intelligence.
Marketers are increasingly making social media a focal point of their marketing campaigns. One such example is Heineken’s “Crack the US Open” campaign. Utilizing Instagram’s grid feature, the campaign created a massive image, which served as a photo scavenger hunt in which Instagram users could participate to win US Open tickets.
Absolut found a unique way to improve its customer engagement. ‘Absolut Drinks in Motion’ was launched on YouTube and Absolutdrinks.com, where users could access video tutorials for about 3,500 drink and learn how to make their favorite cocktails at home.