Social media advertising is expected to make up half of all retail advertising spend throughout 2020.
According to new research from Smartly.io 52 per cent of retail marketers intend to spend more on social media advertising in 2020 than they did last year.
A further 50 per cent of retail advertisers plan to spend more than half of their entire budget on social media advertising, totalling around $65 billion in the US alone.
“Retail marketers recognize the value that social media ads bring to their campaigns, and they are focused on understanding which levers to pull to generate even more engagement and revenue,” Smartly’s global head of marketing Robert Rothschild said.
Facebook is set to take the lion’s share of the increased marketing spend, with 96 per cent of respondents saying they plan to raise Facebook spend compared to 2019, compared to 56 per cent who plan to raise Twitter budgets and just 22 per cent who plan to focus on Instagram.
“Capturing the attention of today’s consumer demands that advertisers tell stories that seamlessly blend with the organic content that their audience already consumes,” Rothschild added.
“Investing in visual storytelling enables retail marketers to connect with consumers on an emotional and highly relevant level. Shifting spend to story ads, diversifying across social networks like Pinterest, bridging the gap between performance and creative teams, and investing in technology to scale creative and deliver incrementality in ad performance are ideal solutions that will allow teams to work faster and smarter in the year to come.”