Social media is now the top medium on which advertisers spend their budgets, with display and paid search lagging behind.
A new study from The Manifest, just came out that looked into how 501 companies in the United States are spending their advertising budgets. The report found that the Social Media platforms like Facebook, Instagram, Twitter and Linkedin are bringing in the most ad spend when compared to display banners and paid search on Google and Bing.
The study found that 66% of companies are investing in online advertising, mostly due to the lower cost and higher reach than many other traditional advertising avenues like direct mail. An interesting comparison of direct mail advertising compared to Facebook advertising found that to reach 10,000 people via direct mail costs about $5,000, while the cost to reach those users on Facebook would cost just $500.
In addition, it found that social media campaigns accounted for 86% of the spend, while display accounted for 80% of the spend and paid search accounted for 66% of the spend.
While buyers are looking to spend on social media, it’s also important to consider the ad campaigns goal when choosing between each avenue.
It’s clear that the most successful advertisers are using all three to drive different actions. Social media is great for promoting a brand page, display is great for brand awareness and paid search is great for driving action.