Social media advertising spending has increased dramatically worldwide but most especially in the US. According to data presented by TradingPlatforms.com, social media ad spend in the US is projected to pass the $50B mark for the first time in 2021.
Social Media Ad Revenue To Cross $50B Mark; Revenue From Mobile Ads To Account for 85%
Social Media Advertising pertains to all ad revenue generated by social networks such as Facebook, Instagram or LinkedIn. Notably, neither advertising ads within online games nor subscription fees are included in the calculations. As of 2021, the US generated the largest social media ad revenue in the world.
The US is projected to pass the $50B revenue mark from social media ad spend for the first time in 2021 when it is expected to reach an estimated total of $56.18B. Notably, this figure is almost double the next largest social media revenue which was generated by China – $28.75B in 2021.
Ad revenue from 2021 is a 16.7% increase from 2020 when revenue amounted to $48.12B. In the four-year period from 2021-2025, social media ad revenue is projected to grow at a compound annual growth rate (CAGR) of 7.76%, reaching $75.76B by the end of the forecast period.
An overwhelming majority of social media ad revenue is generated from ads on mobile. In 2020, almost 83.85% of total revenue was generated by social media ads on mobile which amounted to $40.35B. In 2021, this figure is expected to rise by 18.22% to $47.71B, giving social media mobile ad revenue an almost 85% share of total revenue.