Background

Advertising Market on Social Media Platforms: Current Status and Outlook

The digital advertising market serves as the main income source for most social media platforms. These platforms earn money by displaying ads, a sector that's constantly evolving and expanding. Major global social platforms like Meta, TikTok, Instagram, and Twitter play a significant role in promoting various products and services to consumers through advertising.

Evolution and Growth of the Advertising Market:

• The Scale of the Advertising Market: Global social media advertising spending is expected to reach $219.8 billion in 2024. Ad spending is expected to grow at an annual rate of 3.86% (CAGR 2024-2028), resulting in a market size of $255.8 billion by 2028. (출처: Statista)

• Diversification of Advertising Formats: In addition to conventional static image and video ads, new forms of advertising are on the rise, including AR/VR ads, influencer marketing, and narrative-based ads.

• Data-Driven Targeting: Social media platforms are utilizing user data to enable advertisers to conduct targeted advertising. This practice is enhancing advertising efficiency and delivering more personalized ads to users.

• Innovation in Small-Scale Advertising: Traditionally, executing individual or small-scale advertisements has posed challenges for individuals and small businesses, mainly due to costs and complexities involved. However, with the advent of social media platforms, a landscape has emerged where anyone can effortlessly engage in modest advertising campaigns. These shifts have democratized brand promotion, making it both affordable and straightforward for individuals and small businesses.

The Advertising Market in the Era of Web3:

• Decentralization: In the era of Web3, it's anticipated that the advertising market will undergo decentralization. This signifies a shift towards greater transparency and fairness in the relationships between advertising platforms, advertisers, and users.

• Privacy Protection: Users will have more control over their personal information. Advertisers will need to obtain user consent before displaying ads.

• Transparency: The transparency of advertising campaigns will increase. Users will be able to understand how ads are displayed and what data is being used.

Advertising is continually evolving, with one direction being the rapid expansion of Web3-integrated advertising. These changes are poised to innovate the future of the advertising industry and foster interaction between users and advertisers.