If there was ever a digital innovation that changed everything, it’s social media.

What began as a way to stay connected (and snoop), quickly shifted to be one of the most influential tools in any marketeer or PR professional’s arsenal. It changed how we speak and interact, how we source and consume information, and how we deploy campaigns of all shapes and sizes. 

For today’s brands, social media has been an easy-to-open window into their core demographics since day one. It’s never been simpler to understand decision-making behaviour, trends and evolving customer demands through the use of platform data. And more importantly, use these insights to develop more sophisticated ways of targeting buyers.

Here’s how today’s social media advertising is leading B2C marketing, and how it’s increasingly a one-stop-shop for consumer brands’ marketing.

The Growth of Social Media Advertising in B2C Marketing

Social media spend has been on the rise for years – and it’s unlikely to slow anytime soon.

In 2020, brands spent an estimated US$132.8bn globally – an increase of over 36% from 2019. By 2021, that figure reached US$180.9bn. And has been growing year-on-year ever since.

It goes without saying, but at the height of the COVID-19 pandemic between 2020-2022, we saw a fundamental shift in purchasing behaviours. Consumers weren’t able to physically browse and shop for prolonged periods of time. Digital device usage increased drastically, and brands needed to swiftly adapt to survive an unpredictable market.

Of course, this isn’t the only determining factor. Platforms have become more sophisticated, and data capabilities across the likes of Instagram, TikTok and Facebook have expanded exponentially in the past decade.

Meanwhile, we have a generation of consumers who are increasingly reliant on reputation-based markers in their decision-making. The ability to trust brands and products has never been so key to commercial success, and social media makes it easy to leverage social proof in the form of reviews, followers, influencers, even basic ‘likes’

The Impact of Social Media Advertising for B2C Marketing

In the simplest possible terms, most popular platforms’ targeting tactics are largely determined by online behaviour. Yes, you can run campaigns by selecting core demographics such as age, location and so on, but ad targeting largely uses scrolling and interaction behaviours.

The algorithm will identify prospective customers based on engagement metrics, and other factors like hashtags, keywords and so on, and push ads from brands with associated tone, topic and intention.

So for example, a user who frequently watches, shares, comments and/or reacts to content about fitness may see an uptick in ads promoting supplements, workout apps or gym clothes.

Algorithms are constantly evolving, but for brands, it’s a simple and effective way of expanding their pool of likely consumers. And where ROI is concerned, we’ve no shortage of findings to demonstrate its impact.

Some findings suggest that the average Return on Investment on social ad spend is around the 95% mark. Social media produces almost double the marketing leads of other ‘traditional’ methods like trade shows, telemarketing, direct mail, or PPC. Aside from leads and sales, channels can also increase brand awareness, customer loyalty and reputational strength.

Social Media Advertising vs. Traditional Paid Advertising

So, where does the growth and impact of social media spend leave the more ‘traditional’ paid advertising, like paid search?

As long as individuals continue to use Google (and other search platforms), paid search advertising will remain a key tactic for brands. In the US, spend is projected to reach nearly $63bn by the close of this year, and it’s still a highly popular method for marketeers.

But, it’s worth noting that the fundamental behaviours of user search are shifting.

In a study from Adobe, 1 in 10 Gen Z’ers said they‘re more likely to rely on TikTok than Google for search, and 41% of users admitted to using the platform for search. So, if that trajectory continues, the ROI and deployment of paid advertising may also see changes.

‘Ifs’ aside, any strong marketing strategy encompasses multiple touchpoints to achieve its KPIs – and any reliable marketeer will know not to put all their eggs (or budget) into one basket.

What About B2B Social Media Advertising?

Social ads aren’t relegated to the business-to-consumer market. Some of the most successful social campaigns have been B2B. But the approach looks pretty different.

For one, the stereotypical platform for B2B paid ads is LinkedIn. There are around 740 million platform users globally, ranging from CEOs and founders, to junior talent and stakeholders, Making it prime for organisations who are actively looking to partner with or sell to other businesses and leaders.

It enables businesses to use demographics like job title or role, industry and sector for their targeted campaigns, and unlike other platforms, it’s purely business-centric. Meaning it’s often used by leaders as a source of information or research tool.

LI isn’t the be-all, end-all. Many B2B brands also use YouTube to reach their audience base with paid ads, or Facebook – though usage of the platform for both brands and consumers has meant this is a declining channel.

In many senses, B2B social ads are much more transparent; users know brands will want to sell to them, companies know specifically who to target, and tonally, ads can be much more clear cut and direct.

Conclusion

For all the talk of significant growth trajectories over the past 5 years, social advertising spend is likely to increase in the coming decade. Platform sophistication and influence is on the rise, as is the data we can garner from popular channels, and brands of all shapes and sizes and sectors are leveraging this across their strategies.

As with most digital tactics, social media is also a notoriously changeable mode of communication; its algorithms are constantly evolving, along with usage behaviour and sentiment, and it can be difficult to predict the next era of social. Which is why investing in experienced talent can take your brand far.

If you’re looking for a marketeer or paid ads manager with extensive experience in socials, we can help with that. With our network of over 5,000 independent professionals and managed service means we can source the right individual in the right place with the right expertise.