With marketing dollars being shifted toward digital, and social media becoming ubiquitous, advertisers are increasingly moving spend to social platforms. Over the next five years, CMOs expect to raise their social media spend by a significant 71 percent.
These changes are already taking place as marketers make adjustments to their budgets. Currently, social media spend accounts for 12 percent of marketing budgets, on average. Over the next five years, CMOs expect social to account for nearly a quarter of marketing budgets.
Brands of all types are expected to increase social spend over the next five years. Brands marketing B2C products are expected to boost spending by 61 percent, while those promoting B2C services are projected to increase spending by 82 percent. B2B brands also will see significant increases in social spend—89 percent for products, and 58 percent for services.
Marketers first used social media to connect with audiences, building relationships by interacting with customers. However, today’s social media channels serve multiple purposes. Brands now look to social media to fulfill a variety of objectives, including:
- Brand building and awareness: One of the most effective ways to use social media is to boost brand awareness. Plus, social media gives marketers the opportunity to target certain demographics and niche markets.
- Engaging new customers: Brands often look to social media when reaching out to new customers, whether it’s through sharing popular hashtags or implementing targeted ads.
- Introducing audiences to new products and services: Social media is an excellent tool for spreading the word about a new product or service.
- Maintaining interest among current customers: Well-crafted social media content allows you to keep your audience interested while potentially creating brand ambassadors.
- Sharing brand promotions and coupons: Social media provides brands with a cost-effective, simple way to share information about upcoming deals and specials.