Social Networking Advertising Market by Component (Solutions and Services), Solutions (CRM Software, Email Marketing, Social Media, Search Marketing, Content Management, Marketing Automation, Campaign Management, and Others), Organization Size (Large Enterprises and Small- & Medium-sized Enterprises (SMEs)), Platform (Mobile, Desktop & Laptop, and Others), and Industry Vertical (BFSI, Healthcare & Life Sciences, Telecommunications &ITES, Government & Public Sector, Manufacturing, Consumer Goods & Retail, Media & Entertainment, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027
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COVID-19
Pandemic disrupted the entire world and affected many industries.
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Social media advertising is an offshoot of digital marketing where paid ad campaigns are run on social media platforms to reach target audiences. Marketers and advertisers can promote their brands and inspire sales through the social channels that users frequently use. Â Social networks utilize end user information to serve highly relevant advertisements based on interactions within a specific platform or surfing. In many instances, when target market aligns with the user demographics of a social platform, social advertising can provide huge increases in conversions and sales with lower cost of acquisition in organizations. The five core concept of social networking advertising are strategy, planning & publishing, listening & engagement, analytics & reporting, and advertising.
Social Networking Advertising Market Scope and Structure Analysis:
Report Metric | Details |
 Market size available for years |  2020–2027 |
 Base year considered |  2019 |
 Forecast period |  2021–2027 |
 Forecast units |  Value ($) |
 Segments covered | Component, Solutions, Organization Size, Platform, Industry Vertical, and Region |
 Regions covered | North America (U.S. and Canada), Europe (Germany, UK, France, and the Rest of Europe), Asia-Pacific (China, Japan, India, and the Rest of Asia-Pacific), Latin America (Brazil, Mexico, and the Rest of LATAM), and Middle East and Africa |
 Companies covered | Major players analyzed in the market include Facebook Inc., Google LLC, Instagram, Kakao Talk, LINE Corporation, LinkedIn Corporation, Pinterest, Sina Weibo, Snapchat, Tencent Holdings Ltd., and Twitter Inc. |
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Impact of COVID-19 on Social Networking Advertising Market:
- The fast-changing developments surrounding the COVID-19 pandemic is encouraging for social media’s unparalleled ability to offer mass instantaneous communication to a large audience.
- Facebook halted its construction of its Huntsville, Alabama data center campus due to safety concerns over staff during the COVID-19 outbreak.
- Microsoft has seen a 775% increase in Teams’ calling and meeting monthly users during lockdown in Italy, where social distancing or shelter in place orders have been enforced.
- Google and YouTube, as well as its parent company Alphabet, Microsoft, LinkedIn, Reddit, Twitter, and Facebook have come together to help millions of people stay connected while also jointly combating fraud and misinformation during pandemic.
Top impacting factors: market scenario analysis, trends, drivers, and impact analysis
Increasing social media users, expanding social media communication volumes, and constant increase in amount of time people spend on social media are the key factors contributing to the growth of social networking advertising market. Increasing number of smartphone users and growing trend towards accessing social media content through mobile devices, and rising focus on delivering personalized web-based advertisement based on overall user behavior & preference accelerated the growth of social networking advertising market. However, constraints on lack of proper insights whether social media advertising channels have generated any revenue in business, is acting as a major restraint to the social networking advertising market. Contrarily, expanding small and medium sized enterprises (SMEs) and continuous preference towards social media adverting tools to reach target customers is expected to boost the demand of social networking advertising market in the forecasted years.
Social networking advertising in optimizing conversion rate
Every business is trying to optimize its conversion rate. They implement strategies to boost conversion rates through social media advertising. Designing social media ads convey the message of organizations to users on the following landing page which is proven to increase conversion rates. Social media advertising tracks every single impression, click, and conversion on ads. This tracking mechanism quashes the need for the spray-and-pray approach. Social media advertising thrives on data therefore, the decisions are guided by the coverage of target audience and revenue of the business increasing the demand for social networking advertising and will create growth in the global social networking advertising market globally in forecast period of time.
Increasing proliferation of smartphones
This shift towards increasing smartphone usage promotes advertisers and marketers to shift their strategies and campaigns to accommodate for mobile web-based advertising. For instance, companies without a mobile-friendly website risk losing valuable exposure on Google Inc.'s (GOOG) web search queries because Google changed its algorithm so that more mobile-friendly websites have priority placement for search queries made on mobile devices. This will create growth opportunity in the global social networking advertising market globally in forecast period of time.
Key segments covered:
Segments | Subsegments |
 Component |
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 Solutions |
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 Organization Size |
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 Platform |
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 Industry Vertical |
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Key benefits of the report:
- This study presents the analytical depiction of the global social networking advertising industry along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global social networking advertising market share.
- The current market is quantitatively analyzed from 2020 to 2027 to highlight the global social networking advertising market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed global social networking advertising market analysis depending on competitive intensity and how the competition will take shape in coming years.
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