In 2028, the ad spending growthis forecast to significantly decrease in all segments compared to the previous time point. Concerning the two selected segments, the segment Social Media Advertising Mobile has the largest ad spending growthwith 3.53 percent. Contrastingly, Social Media Advertising Desktop is ranked last, with 2.89 percent. Their difference, compared to Social Media Advertising Mobile, lies at 0.64 percentage points. The Statista Market Insights cover a broad range of additional markets.

Global Social Media Advertisement Market to hit USD 406.64B by 2029 growing at 12.2% CAGR. Explore trends, drivers, and competition for strategic insights with The Business Research Company.

In 2024, social media advertising spending worldwide will amount to an estimated 234.14 billion U.S. dollars, up from less than 98 billion dollars in 2019 – an increase of 140 percent in half a decade. The value was forecast to grow by nearly 50 percent by the end of the decade, exceeding 345 billion dollars by 2029. Social media's relevance for marketing During a 2024 survey, more than four out of five responding global marketers listed increased exposure as a benefit of social media marketing. Traffic expansion and lead generation rounded up the top three, mentioned by 73 and 65 percent of the interviewees, respectively. Furthermore, Facebook was the most-used social media platform among business-to-consumer (B2C) marketers, while LinkedIn topped the ranking among business-to-business (B2B) marketing professionals. Advertising insights Find further information concerning the average ad spending per internet user in the 'Digital video ads' segment of the advertising market in the United Kingdom and the traditional revenue in the 'Traditional TV Advertising' segment of the advertising market in Poland.The Statista Market Insights cover a broad range of additional markets.

The ad spending in the 'Social Media Advertising' segment of the digital advertising market in the United States was forecast to continuously increase between 2023 and 2028 by in total 15.8 billion U.S. dollars (+21.84 percent). After the ninth consecutive increasing year, the indicator is estimated to reach 88.08 billion U.S. dollars and therefore a new peak in 2028. Notably, the ad spending of the 'Social Media Advertising' segment of the digital advertising market was continuously increasing over the past years.Find other key market indicators concerning the average ad spending per internet user (ARPU) and revenue growth. The Statista Market Insights cover a broad range of additional markets.

Market Overview and Growth: The global social media advertising market is projected to reach a value of $103,780 million by 2033, exhibiting a robust CAGR of 13.8% during the forecast period from 2025 to 2033. The increasing penetration of social media platforms and the growing adoption of mobile devices for online activities are among the key factors driving this growth. Social media platforms offer businesses a targeted and cost-effective way to reach their desired audience, leading to increased ad spending. Market Segments and Competitive Landscape: The market is segmented based on type (search ads, mobile ads, banner ads, classified ads, etc.) and application (retail, automotive, entertainment, financial services, etc.). North America is the dominant region, followed by Europe and Asia Pacific. Key players in the market include Alphabet (Google), Facebook, Baidu, Yahoo! Inc., and Microsoft. These companies offer a wide range of social media advertising solutions to meet the diverse needs of businesses. The competitive landscape is intense, with each player leveraging its strengths to gain market share. Strategic partnerships and acquisitions are common as companies seek to expand their offerings and consolidate their position in the market.

In 2021, global social media advertising spending stood at around 116 billion U.S. dollars. The source projected that this figure would more than double and exceed an all-time high of 262 billion by 2028.

Where to advertise in a sea of social media platforms?

While there are many regional differences when it comes to social media usage and accessibility, some platforms reign supreme among users and advertisers alike. As of 2022, Facebook, YouTube, and Instagram were the most popular social networks worldwide. Thanks to their massive audiences, these Meta-owned properties also ranked among the leading social media platforms for marketers. What makes advertising via these channels so appealing is not only the prospect of boosting brand awareness and generating leads but also the possibility to strengthen brands’ relationships with consumers via direct communication.

Spotlight on influencer marketing

In addition to posting photos and videos on their social media accounts and interacting with followers, companies can also enlist the help of content creators to drive visibility and potentially unlock new audiences. Over the past few years, the global influencer marketing market value has expanded rapidly and is now sized at an estimated 16.4 billion U.S. dollars. Instagram remains the primary playground for this creator-driven form of online marketing, though apps like TikTok are also becoming more appealing to brands from around the world.

According to Cognitive Market Research, the global Digital Ad Spending market size will be USD 621451.6 million in 2024. It will expand at a compound annual growth rate (CAGR) of 9.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 248580.6 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 186435.48 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 142933.87 million in 2024 and will grow at a compound annual growth rate (CAGR) of 11.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 31072.58 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 12429.03 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2031.
The Display Ads category is the fastest growing segment of the Digital Ad Spending industry

Market Dynamics of Digital Ad Spending Market

Key Drivers for Digital Ad Spending Market

Increasing Consumer Attention on Digital Channels to Boost Market Growth

As more people spend considerable time online across various digital platforms—such as social media, search engines, streaming services, and e-commerce sites—advertisers adapt to this change in consumer behavior. Currently, there are 4.76 billion social media users worldwide, representing nearly 60 percent of the global population. However, the growth of social media users has slowed recently, with this year's addition of 137 million new users reflecting an annual growth rate of just 3 percent. The shift away from traditional media like TV, print, and radio toward digital platforms has fueled significant growth in digital ad spending.

Growing Penetration of the Smartphones to Drive Market Growth

With the widespread adoption of smartphones and high-speed mobile internet globally, advertisers are increasingly prioritizing mobile-first campaigns. In 2022, 73 percent of the global population aged 10 and above owned a mobile phone, seven percentage points higher than the proportion of internet users. Recent data shows that 70 percent of the world’s population now owns a mobile phone, with the number of unique mobile users reaching 5.68 billion by July 2024. Smartphone usage continues to grow, with over 7 billion smartphones in use, making up approximately 87 percent of all mobile phones worldwide. Mobile advertising, especially through in-app ads, social media, and video ads, has become a major driver of digital ad spending growth. Additionally, increased internet access in developing regions like Asia Pacific, Latin America, and Africa has expanded the audience for advertisers, significantly enhancing the global reach and potential of digital marketing campaigns.

Restraint Factor for the Digital Ad Spending Market

Ad Fraud and Brand Safety Concerns Will Limit Market Growth

One of the biggest challenges in the digital ad space is ad fraud, which involves deceptive practices like fake clicks, fake impressions, or fake installs, often driven by bots or malicious actors. This can result in advertisers paying for non-human traffic, diminishing the return on investment (ROI) for digital ad campaigns. The prevalence of click fraud and invalid traffic is a major concern for brands, leading to a cautious approach when it comes to increasing digital ad budgets. Advertisers are concerned about their ads appearing alongside inappropriate or controversial content, which could harm their brand reputation. Issues like ads being placed on websites with offensive or harmful content, or being associated with fake news, can erode trust in digital platforms. As a result, many advertisers might limit their spending on platforms that cannot guarantee brand safety.

Impact of Covid-19 on the Digital Ad Spending Market

At the onset of the pandemic, many businesses across industries reduced their advertising budgets as they faced economic uncertainty, supply chain disruptions, and changing consumer behavior. This resulted in a temporary decline in digital ad spending, particu...

Social Media Marketing Software Market size was valued at USD 71.55 Billion in 2024 and is projected to reach USD 196.39 Billion by 2031, growing at a CAGR of 14.84 % from 2024 to 2031.

Social Media Marketing Software Market Drivers

Rapid Growth of Social Media Platforms: The continued expansion of social media platforms, such as Facebook, Instagram, Twitter, LinkedIn, and TikTok, has created vast opportunities for businesses to engage with their target audiences. As more businesses recognize the importance of maintaining a strong social media presence, the demand for social media marketing software has increased.

Shift Towards Digital Advertising: Traditional advertising channels are becoming less effective as consumers spend more time online. Businesses are reallocating their advertising budgets towards digital channels, including social media platforms, to reach their target demographics more effectively. Social media marketing software enables businesses to manage and optimize their digital advertising campaigns across multiple social media channels.

Focus on Targeted Marketing and Personalization: Social media marketing software offers advanced targeting and personalization capabilities, allowing businesses to deliver tailored content and advertisements to specific audience segments based on demographics, interests, and online behaviors. This level of customization enhances engagement and conversion rates, driving the adoption of social media marketing solutions.

Snapshot img

Online Ad Spending Market Size 2024-2028

The online ad spending market size is forecast to increase by USD 244.5 billion at a CAGR of 11.1% between 2023 and 2028.

The market has experienced significant growth due to the increasing usage of the internet and the shift of consumers towards digital platforms. One of the key trends driving this market is the rise of video ads on search engines and social media sites. As more consumers engage with digital content, advertisers have recognized the potential of artificial intelligence and video advertising to capture their attention. However, this growth comes with challenges, such as the issue of click fraud and the need for brands to navigate the complex digital advertising landscape. Despite these challenges, the market is expected to continue its expansion, with digital ad spending projected to surpass traditional ad spending in the coming years. As consumers become more engaged with digital content, it is essential for businesses to adapt and invest in effective digital advertising strategies to reach their audience.

What will be the Size of the Market During the Forecast Period?

Request Free Sample

The market has witnessed significant growth over the past few years, driven by the increasing popularity of smartphone and digital channels for reaching consumers. According to recent studies, digital ad expenditure is projected to continue its upward trend, surpassing traditional advertising methods. Digital marketing strategies have become essential for businesses aiming to engage customers effectively. Marketers are increasingly focusing on digital ad campaigns to reach their target audience, with mobile advertising leading the charge. In fact, mobile advertising is expected to account for a significant portion of digital ad expenditure due to the widespread use of smartphones and tablets. Measuring the return on investment (ROI) of digital ad campaigns is a critical aspect of digital marketing. Marketers use various metrics, such as click-through rates, cost per click, and conversion rates, to evaluate the success of their campaigns. By analyzing these metrics, marketers can optimize their ad spend to maximize ROI. Ethical considerations are also essential in the digital advertising market. Marketers must ensure that their digital ad campaigns are transparent, respect user privacy, and comply with relevant regulations.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Platform

  Mobile devices
  Desktops


Geography

  North America

    Canada
    US


  APAC

    China
    India
    Japan


  Europe



  South America



  Middle East and Africa

By Platform Insights

The mobile devices segment is estimated to witness significant growth during the forecast period.

The digital advertising market, particularly online spending, is experiencing significant growth due to the increasing usage of the internet and the popularity of digital platforms among consumers. Video ads on these platforms have gained considerable traction, with search engines continuing to dominate as the primary avenue for online advertising. According to recent studies, mobile devices, specifically smartphones, are driving this growth. In 2023, over 1.17 billion smartphone units were shipped worldwide, leading to a wave in mobile internet usage and, consequently, mobile advertising.

Get a glance at the market report of share of various segments Request Free Sample

The mobile devices segment was valued at USD 164.90 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 41% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

For more insights on the market share of various regions Request Free Sample

In the global digital marketplace, North America holds a substantial share in online ad spending. The region's growth can be attributed to the widespread adoption of smartphones and advanced broadband infrastructure. Traditional advertising mediums, such as print newspapers and radio, are becoming saturated, leading companies to shift their focus towards digital channels. Mobile advertising is a significant driver of the regional market, as more individuals spend an increased amount of time using mobile devices for daily activities and content consumption. As a result, marketing efforts will continue to integrate into mobile devices throughout the forecast period.

Market Dynamics

Our researchers analyzed the data wi

Key Digital Marketing Statistics

• Digital Marketing Market size is expected to be worth around USD 1,310.3 Billion by 2033, from USD 366.1 Billion in 2023.
• By the year 2023, digital advertising is anticipated to hit $602.25 billion.
• Search Advertising comprises the biggest segment, with a market volume of $202.40 billion.
• Expected to spend $232.7 billion on ads, the United States will be leading globally.
• The expected mean expenditure on social media advertising by every user in 2023, is $45.11.
• The proportion of smartphone-related advertising expenses is predicted to be 69% by 2026.
• The projected estimate for programmatic advertising contribution to digital advertising revenue is around 87% by the year 2026.
• A projection of 17 compound annual growth is expected for digital marketing. There will be a 6% decrease between 2021-2026.
• By 2023, social media advertising will exceed $230 billion.
• Facebook and Google Ads have the highest ROI rate in paid advertising.
• Digital advertising spending in 2021 was $436 billion US dollars. Traditional advertising was at $196 billion.

(Source: Statista, WordStream)

Global Social Advertising Social Media market size 2025 was XX Million. Social Advertising Social Media Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

According to Cognitive Market Research, the global Kids Digital Advertising market size will be USD 8240 million in 2025. It will expand at a compound annual growth rate (CAGR) of 23.40% from 2025 to 2033.

North America held the major market share for more than 37% of the global revenue with a market size of USD 3048.80 million in 2025 and will grow at a compound annual growth rate (CAGR) of 21.6% from 2025 to 2033.
Europe accounted for a market share of over 29% of the global revenue with a market size of USD 2389.60million.
APAC held a market share of around 24% of the global revenue with a market size of USD 1977.60 million in 2025 and will grow at a compound annual growth rate (CAGR) of 26.5% from 2025 to 2033.
South America has a market share of more than 4% of the global revenue with a market size of USD 313.12 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.2% from 2025 to 2033.
Middle East had a market share of around 4.00% of the global revenue and was estimated at a market size of USD 329.60 million in 2025 and will grow at a compound annual growth rate (CAGR) of 24.9% from 2025 to 2033.
Africa had a market share of around 2.2% of the global revenue and was estimated at a market size of USD 181.28 million in 2025 and will grow at a compound annual growth rate (CAGR) of 23.7% from 2025 to 2033.
Desktop & Laptops category is the fastest growing segment of the Kids Digital Advertising industry

Market Dynamics of Kids Digital Advertising Market

Key Drivers for Kids Digital Advertising Market

Growing Utilization of Cutting-Edge Digital Marketing Tools to Boost Market Growth

businesses are investing a lot of money in digital marketing since it strengthens their brand, expands their customer base, and increases return on investment (ROI). These days, kids use social media sites like Facebook, Instagram, Snapchat, and educational apps. As a result, targeting children is simple for digital advertising companies. Digital marketing firms employ a range of advertising formats, including broadcast, sponsored search, social media, and display advertising. For instance, According to a parent study conducted in October 2021 by C.S. Mott Children's Hospital, 49% of parents of children aged 10 to 12 reported using social media apps in the previous six months, followed by educational apps (28%), and miscellaneous apps (23%). 32% of parents reported using social media applications, 50% said they used educational apps, and 18% said they used other apps for children ages 7 to 9.

https://mottpoll.org/reports/sharing-too-soon-children-and-social-media-apps

Increasing in Children's Smartphone Adoption and Internet Penetration Boosts The Need For Advanced kids Digital Advertising To Boost Market Growth

In addition to the channels and choices they make, children's extensive usage of technology is having a significant impact on families. The market for digital advertising for children is anticipated to grow as more children acquire smartphones. Additionally, the internet has transformed the world, helping businesses, sectors, and consumers alike. One major factor contributing to the sharp rise in mobile applications is the rise in mobile Internet usage, which is expected to drive the children's digital advertising market over the course of the projected period.

Restraint Factor for the Kids Digital Advertising Market

Parental Concerns About the Effect on Health Of kids Digital Advertising Limit Market Growth, Will Limit Market Growth

The possible harm that digital advertisements may do to children's development, behavior, and mental health is making parents more conscious. Increased scrutiny and opposition to digital advertising aimed at youngsters are the results of this expanding awareness. In order to allay these worries, advertisers need to develop moral and responsible advertising strategies that put the welfare of kids first. Regulations have been put in place by governments and trade associations to guarantee that advertisements are age-appropriate, truthful, and do not take advantage of children's inexperience. These rules restrict the kinds of products and presentational styles that can be promoted to youngsters. These rules must be followed by advertisers, which may limit their marketing tactics and creative freedom.

Market Trends in Kids Digital Advertising Market

Growing Digital Platforms to Lead Global ...

According to Cognitive Market Research, the global Online Advertising market size will be USD 236.90 billion in 2024 and will expand at a compound annual growth rate (CAGR) of 15.7% from 2024 to 2031. Market Dynamics of Online Advertising Market

Key Drivers for Online Advertising Market

Increasing Use of Mobile Devices - One of the main reasons the Online Advertising market is growing is the increasing use of mobile devices. As smartphones and tablets become more ubiquitous, consumers are spending more time on these devices, creating a prime opportunity for advertisers. Mobile advertising offers a range of formats, including display ads, video ads, and in-app ads, which are tailored to enhance user engagement and deliver personalized content. This shift is supported by advancements in mobile technology, improved internet connectivity, and the proliferation of social media platforms, which collectively enhance the reach and effectiveness of mobile ads. Additionally, the development of sophisticated targeting and analytics tools allows advertisers to deliver highly relevant ads to specific audiences, maximizing ROI.
Shift from Traditional to Digital to Drive the Online Advertising Market's Expansion in the Years Ahead.

Key Restraints for Online Advertising Market

Reducing ad visibility and effectiveness poses a serious threat to the Online Advertising industry.
The market also faces significant difficulties related to limiting profitability for businesses.

Introduction of the Online Advertising Market

The online advertising market has revolutionized businesses' connection with consumers in the digital age. It encompasses a wide array of strategies and platforms aimed at promoting products and services through the Internet. This market thrives on the principles of targeted advertising, leveraging user data to deliver personalized messages across many channels like social media, search engines, websites, and mobile apps. Key players in the online advertising ecosystem include advertisers seeking to reach specific audiences, publishers offering ad space, and ad networks facilitating placements. The rapid growth of e-commerce and digital consumption has fueled the expansion of this market globally, with robust competition driving innovation in ad formats and targeting capabilities.

Social Media Advertising Market Analysis

The Social Media Advertising Market is experiencing significant growth,...

The ad spending growthin the 'Social Media Advertising' segment of the digital advertising market in the United Kingdom was forecast to continuously decrease between 2023 and 2028 by in total 6.4 percentage points. After the fifth consecutive decreasing year, the indicator is estimated to reach 1.49 percent and therefore a new minimum in 2028. Find other key market indicators concerning the average ad spending per internet user (ARPU) and revenue. The Statista Market Insights cover a broad range of additional markets.

According to Cognitive Market Research, the global Digital Marketing Analytic market size will be USD 4518.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 20.90% from 2024 to 2031.

North America held the major market share, more than 40% of the global revenue, with a market size of USD XX million in 2024. It will grow at a compound annual growth rate (CAGR) of 1.6% from 2024 to 2031.
Europe accounted for over 30% of the global USD XX million market size.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Latin America's market will have more than 5% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of 2.8% from 2024 to 2031.
The Middle East and Africa held the major market share, around 2% of the global revenue, with a market size of USD XX million in 2024. The market will grow at a compound annual growth rate (CAGR) of 3.1% from 2024 to 2031.
Social media marketing held the highest Digital Marketing Analytics market revenue share in 2024.

Key Drivers of Digital Marketing Analytics Market

Various Strategies Adopted by Key Players to Provide Viable Market Output

The Digital Marketing Analytics market is experiencing significant growth due to various strategies adopted by key players. These include investing in advanced analytics technologies such as artificial intelligence and machine learning, enhancing their product offerings with features like predictive analytics and real-time data visualization, expanding their global presence through partnerships and acquisitions, and focusing on customer-centric approaches to improve user experience and satisfaction. Overall, these strategies help companies stay competitive and meet the evolving needs of the market.

For instance, in May 2023, Mixpanel propounded the launch of marketing analytics. It enables brands to get insights into the channels that drive new user mergers through multi-touch attribution. It also helps brands increase their return on advertising spend by monitoring the performance of channels and campaigns. It allows brands to get their most valuable customer segments by finding demographic or behavioral cohorts.

(Source: https://mixpanel.com/blog/mixpanel-marketing-analytics/)

Rising Influence of Social Media to Propel Market Growth

The digital marketing analytics market is experiencing growth due to the influence of social media. As social media platforms continue to gain more, businesses are relying on them to connect with customers, get brand awareness, and drive sales. Consequently, there's a growing need for advanced analytics tools to track social media performance, engagement metrics, customer sentiment, and ROI. These analytics provide invaluable insights that enable companies to refine their marketing strategies, optimize campaigns, and enhance overall effectiveness in leveraging social media platforms for business growth. Thus, the escalating importance of social media underscores the increasing demand for sophisticated digital marketing analytics solutions.

For instance, in 2020, McDonald's India North and East started a social media advertisement campaign, McGrillis Back, to capture a major revenue share in the Quick Service Restaurant market. It helped the company gain 24,000 posts on Twitter and more than 200 followers on Instagram.

(Source: https://www.afaqs.com/news/advertising/mcdonalds-india-north-east-strikes-a-chord-with-its-new-campaign-we-get-it)

Restraint Factors of Digital Marketing Analytics Market

Lack of Skilled Talent to Restrict Market Growth

The digital marketing analytics market faces a challenge due to a need for more skilled talent. This scarcity hampers the effective utilization of analytical tools and platforms, hindering businesses from extracting valuable insights to optimize their marketing strategies. With skilled personnel adept at interpreting and applying analytics, organizations can leverage data-driven decision-making processes effectively. Addressing this talent gap through training programs and educational initiatives is essential to unlock the full potential of digital marketing analytics and drive business growth in the digital landscape.

Impact of COVID-19 on t...

The global social media management market is experiencing robust growth, driven by the increasing adoption of social media platforms by businesses of all sizes and the rising need for effective social media strategies to engage audiences and boost brand awareness. The market, currently estimated at $15 billion in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) of 15% from 2025 to 2033. This significant expansion is fueled by several key factors, including the growing sophistication of social media marketing tools and analytics, the increasing demand for specialized social media management expertise across diverse industries (from enterprise to institutional settings), and the ever-evolving landscape of social media algorithms requiring continuous adaptation and optimization. The segmentation within the market reflects this diversity, with strong demand across various roles (Analytics, Content, and Advertising Managers) and across different application sectors. The competitive landscape is dynamic, featuring both established players like Hootsuite and Sprout Social and emerging specialized tools, leading to continuous innovation and improved offerings for businesses seeking to maximize their return on investment in social media. The market's expansion is further facilitated by the increasing accessibility of social media management tools, making them viable for even small and medium-sized enterprises. However, challenges remain, including the need for ongoing training and upskilling to manage the complexities of social media marketing, the potential for algorithm changes to impact campaign effectiveness, and the rising concerns around data privacy and security. Geographical distribution shows significant market penetration in North America and Europe, with strong growth potential in Asia-Pacific and other emerging markets. As businesses increasingly recognize the strategic importance of social media, the demand for skilled social media managers and advanced tools will continue to drive significant market expansion over the forecast period. This upward trajectory is expected to continue, driven by the ongoing evolution of social media platforms and the escalating importance of digital marketing strategies.

The Report Covers Online Advertising Companies Statistics and is Segmented by Advertising Format (Social Media, Search Engine, Video, Email), By Platform (Mobile, Desktop and Laptop), By End-User Vertical (Automotive, Retail, Healthcare, Bfsi, Telecom), By Geography (North America (United States, Canada), Europe (United Kingdom, Germany, France, Spain, Italy, Netherlands, Poland, Rest of Europe), Asia Pacific (China, Japan, South Korea, India, Rest of Asia Pacific), Latin America, Middle East and Africa). The Market Sizes and Forecasts are Provided in Terms of Value in USD Billion for all the Above Segments.

Every year billions of dollars are spent on advertising on social media in the United States. In 2022, the amount reached 66 billion U.S. dollars, and included paid advertising on social networks as well as games and applications on social media. By 2025, advertisers are expected to spend over 82 billion dollars on promoting their products on social networks. Facebook commands the lion’s share of these expenditures (more than 80 percent), followed by LinkedIn and Pinterest with four and two percent respectively. Social network advertising – a closer look   Studies show that a little over 90 percent of U.S. companies are and will be using social media for marketing purposes. In 2017, social messaging and video were thought to be the trends of the future in relation to social media advertising and believed to have the biggest effect on marketing strategies. Lo and behold, advertising spending on social video has been growing ever since, and is expected to amount to nearly 15 billion U.S dollars in 2021. Even in this respect, Facebook has the lead, especially when it comes to influencer marketing. In fact, all tiers of influencers - from microinfluencers to celebrities - post the majority of their videos on Facebook. The second choice of platform to share their videos is YouTube, which despite being 'the' video sharing platform is not as popular yet among influencers most probably due to smaller user reach.

Social Media Software Market size was valued at USD 3.24 Billion in 2024 and is projected to reach USD 10.25 Billion by 2031, growing at a CAGR of 17.07% during the forecast period 2024-2031.

Social Media Software Market Drivers

Increasing Social Media Adoption: Growing number of social media users worldwide, driving the demand for software to manage and optimize social media presence.

Business Marketing and Branding: Businesses leveraging social media for marketing, branding, and customer engagement, necessitating advanced social media software tools.

Content Creation and Management: Rising need for tools that facilitate content creation, scheduling, and management across multiple social media platforms.

Analytics and Insights: Demand for analytics tools to measure social media performance, track metrics, and gain insights into audience behavior.

Customer Engagement and Support: Need for tools that enhance customer engagement and provide efficient customer support through social media channels.

Influencer Marketing: Growth of influencer marketing, requiring software to identify, manage, and track influencer collaborations and campaigns.

Ad Campaign Management: Increasing investment in social media advertising, driving the need for software that helps manage and optimize ad campaigns.

Social Media Listening: Importance of social media listening tools to monitor brand mentions, track sentiment, and manage reputation.

Integration with Other Tools: Integration capabilities with other business tools such as CRM, email marketing, and e-commerce platforms, enhancing the overall marketing strategy.

Regulatory Compliance: Need for tools that help ensure compliance with data privacy regulations and social media platform policies.