Social media advertising in the U.S. – additional information
Considering social networks such as Facebook, Twitter and LinkedIn are free services for users, their business models heavily rely on advertising in order to make profit. Social networks increase their value to advertisers by offering vast amount of data, highly targeted ads, along with new features and services. Social media advertising is gaining space in the industry, showing growth projections for the coming years. Social media advertising already accounted for 23 percent of the total global digital ad expenditure in 2013. By 2017, this share is forecast to increase to 34.5 percent. Mobile social media advertising is one of the key areas of this industry. According to forecasts, mobile social media ad in the U.S. is expected to grow its share of social media advertising from 66 percent in 2014 to about 93 percent by 2020.
Led by the U.S., North America is the largest market for social media advertising, as spending in the region accounted for about 41 percent of the total global spending in this ad segment. Facebook's average revenue per user (ARPU) in the U.S. and Canada, for example, is higher than in any other region. In the last quarter of 2015, Facebook's ARPU in these two countries was at 13.54 U.S. dollars, while Facebook’s ARPU in Europe was 4.5 U.S. dollars. Social media advertising ARPU in the U.S. is forecast to nearly double from 2015 to 2020. In 2015, each user in the U.S. generated an average of 41.03 U.S. dollar for social media companies. By 2020, this figure is forecast to total 82.75 U.S. dollars.