More Retailers are Investing in Social Advertising Says Study

Social advertising spending has been on the rise recently. But a report suggests that more marketers in the United States, particularly those in retail, will invest more money in the channel.

According to the Smartly.io study, over 52 percent of retail marketers in the U.S. intend to spend more on social advertising in 2020 than they did last year.

Also, the marketers expressed interest in paying more for the necessary talent and tools.

Social Advertising Spend Across Social Media Platforms

Roughly 47 percent of the participants said they would expand their marketing team this year to manage social ads better. What’s more, 4 in 10 advertisers plan to invest in a more robust social advertising tool.

The report suggests that a bulk of the social ad dollars would go to Facebook.

About 96 percent of the marketing team said that they purchased ads on the social media platform. Only about 75 percent cited Twitter. Meanwhile, Instagram and Pinterest got 59 percent and 16 percent, respectively.

So, why are more retailers investing in social advertising?

Why Investment in Social Advertising is Growing

According to CivicScience’s trend adoption tracker, more internet users are buying products through social media channels. And this could explain the expected surge in social advertising spend.

The number of people that made purchases on social media rose from 13 percent in Q4 2018 to 21 percent in Q3 2019. However, the most significant jump came in Q2, shortly after Instagram launched Checkout.

With that said, social media is unlikely to become the go-to channel for purchases any time soon.

Although consumers are becoming comfortable with shopping on these platforms, sales are still relatively low. It is especially true when you compare the purchases on social channels with eCommerce sales.

In an eMarketer report published earlier in the year, principal analyst at the company, Debra Aho Williamson said:

“The best chances of success for brands and retailers will continue to be in the mid- and upper funnels, where social properties like Instagram can introduce consumers to new brands, create awareness and stimulate demand over time.”