According to the survey by Smartly.IO, the majority of the retailers are focusing on boosting their ad spending on social media for the coming 12 months to reach customers as they spend more time online. The company surveyed around 300 retailers worldwide to analyze their ad spending habits – in the current time and in the future.
With the COVID-19 raging on at full speed, many retailers
are anticipating a further rise in the eCommerce sector. Therefore, they are
investing more on social media with Facebook being the top priority for digital advertising.
Currently, around 93 percent of the surveyed retailers buy ads on
Facebook, followed by Instagram (90 percent), Twitter (83 percent), LinkedIn (63 percent), TikTok
(34 percent), Pinterest (21 percent) and Snapchat (17 percent).
Meanwhile, the retailers also plan to ramp up their spending
next year with almost 76 percent of retailers planning to increase their ad budget for
Facebook, for Twitter (44 percent), Instagram (38 percent), LinkedIn (38 percent), TikTok (10 percent),
Pinterest (8 percent) and Snapchat (5 percent),
There will also be some cutback on platforms that resonate
less with the target customers. For example, 24 percent of retailers plan to reduce
spending on Twitter and Instagram, while only 18 percent said to cut down ad spending
on LinkedIn. For TikTok (12 percent), Facebook (8 percent), Pinterest (8 percent) and Snapchat (8 percent).
A portion of marketers says that they see the best return on
ad spends from Instagram. But despite this, retailers – except those that are
part of the apparel industry continue to increase their spending on Facebook,
rather than Instagram.
When it comes to the budget, two-thirds of the retailers
have a marketing budget of $20 million or more, while 74 percent of surveyed retailers
allocate 31 percent of their marketing budget for social media advertising.
Photo: Hero Images / Getty
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Source: Smartly.
