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B8 Why do social media advertising budgets change so much?

Today I want to share with you the results of a study on the dynamics of advertising budgets on social networks of the 5 largest US companies over the past 10 years (2014-2024).

Analysis of data from the 5 largest US companies

CompanyField of activityBudget for advertising on social networks ($ billion)
2015201620172018201920202021202220232024
AmazonInternet tradingn/an/an/an/an/a8.910.512.113.815.2
MicrosoftTechnologiesn/an/an/an/an/a7.89.4eleven12.313.5
AppleTechnologiesn/an/an/an/an/a8.29.811.412.914.1
AT&TTelecommunications3.84.65.46.37.1n/an/an/an/an/a
Procter & GambleCommon consumption goods4.55.15.96.87.6n/an/an/an/an/a
FacebookSocial media4.255.86.77.5n/an/an/an/an/a

The data presented in the table above shows:

  • Significant growth: Over 10 years, spending on SMM advertising among market giants has increased several times.
  • Leadership positions: Amazon, Apple and Microsoft lead in terms of investment in SMM, ahead of Facebook and AT&T.
  • Shifting priorities: Facebook, despite its status as a pioneer in SMM advertising, is showing a slowdown in growth, while AT&T is cutting costs in this area.

But what causes these changes? Let’s find out!


The growing popularity of social networks

  • Audience: Over the past 10 years, the number of social network users has increased many times over.
  • New features: Platforms are evolving, offering more and more tools for targeting, analytics and audience engagement.

Changing consumer behavior

Online Orientation: Consumers are spending more and more time online, using social media as a source of information and a shopping channel.

  • Trust in influencers: Advertising from opinion leaders is becoming more and more effective, stimulating the growth of SMM budgets.

Competition

  • Market saturation: In a highly competitive environment, companies need to stand out and attract the attention of the audience.
  • Dynamic development: The emergence of new players and trends requires constant updating of SMM strategies and increased investment.

Data analysis shows that SMM advertising is becoming an increasingly important marketing tool for large companies.

The growth of budgets is due to a complex of factors: an increase in the audience, changes in consumer behavior, competition, the proven effectiveness of SMM and the impact of the pandemic.

In the future, we can expect further growth in investment in SMM advertising.

Companies that can effectively use this channel will gain a significant competitive advantage.

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