Facebook drives social media ad revenue growth

by Virginia Carter
in World Media
— Sep 24, 2015

Instgram is helping to drive Facebook's continued strong growth in ad revenues. The social giant is expected to rake in 64.8 per cent of total social ad spend worldwide this year, and is estimated to bring in $16.3bn in ad revenue globally, a 41.8 per cent jump from last year.

Instagram, which Facebook bought in 2012 for $1bn, is behind some of this growth. Though the sum is 62 percent greater than nearly65% of that according to forecasts from eMarketer.

"Twitter has improved its ad targeting capabilities", said Debra Aho Williamson, an eMarketer principal analyst, in a post Wednesday. They're not confident Twitter users will take the time to stop and watch videos, she said, while the sheer size of Facebook and its robust options for reaching specific audiences make that network an easier bet for video ads. Advertisers are spending more to reach people on social networks, Facebook in particular, than originally anticipated.

In addition, 75 percent of that user base - or some 300 million users - are outside the US, where Instagram's potential for ad revenue is just now picking up steam. In contrast, Twitter will take in .48 per US user in 2015, which is a downward adjustment from April. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions.

As Third Door Media's paid media reporter, Ginny Marvin writes about paid online marketing topics including paid search, paid social, display and retargeting for Search Engine Land and Marketing Land.

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