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Ad spending for social networks to reach $25.14 bn in 2015

Highlights
  • Facebook will take 64.8% of total social network ad spending worldwide
  • Instagram will take in USD 600 mn worldwide this year
  • Twitter's expected growth rate down to 61.8% from 66.9% from April 2015

Facebook drives social media’s ad revenue growth as eMarketer estimates that the global social network ad spending will reach USD 25.14 billion in 2015, higher than the USD 23.68 forecast in April. While the worldwide social network ad spending is accelerating even faster than expected, the pace at which the major players are growing differs greatly.

Facebook takes the lead as eMarketer expects it to capture USD 16.29 billion in ad revenues worldwide, a jump of 41.8 per cent over 2014. This year, Facebook will take 64.8 per cent of total social network ad spending worldwide.

Instagram is driving a portion of Facebook’s explosive growth and will take in USD 600 million worldwide this year, accounting for five per cent of Facebook’s worldwide mobile ad revenue this year. According to eMarketer estimates Instagram will make USD 1.48 billion in worldwide ad revenues, growing 149 per cent over 2015.

On the other hand, eMarketer has adjusted Twitter’s worldwide growth rate down since April. Twitter is now expected to grow ad revenues 61.8 per cent this year, taking in USD 2.03 billion, or 8.1 per cent of total social network ad spending worldwide. In April, eMarketer predicted Twitter’s growth would reach 66.9 per cent this year.

“Twitter’s slowing user growth is impacting its ad business. Twitter has improved its ad targeting capabilities, and it still has a lock on real-time conversation. However, advertisers want to reach a mass audience and that’s harder to do on Twitter than on Facebook,” said Debra Aho Williamson, eMarketer principal analyst.

As Facebook continues to grow its user base and capture more revenue, eMarketer has adjusted its ad revenue per user forecast upward. Facebook’s ad revenue per user will reach USD 48.76 this year in the US, higher than the USD 43.43 forecast in April. Globally, Facebook will capture USD 12.76 per user this year. By 2016, eMarketer estimates Facebook to take in USD 15.18 per user worldwide, and USD 61.06 per user in the US.

Meanwhile, Twitter will capture USD 24.48 per US user in 2015, adjusted downward from April estimates. Globally Twitter will capture USD 7.75 per user in 2015. By 2016, eMarketer predicts Twitter to capture USD 10.12 per user worldwide and USD 32.22 per user in the US.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.
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