Many people assume that the birth of social media came only at the rise of social networking giants like Facebook and Twitter. When in fact, previous forms of technology have already served the purpose of connecting people. Its roots take us back to the time of written and telephone correspondence. Telegraph and phone lines provided people the means to convey information.
Then there’s the World Wide Web. With its introduction, social media took on a new form.
As the internet grew, so did social media. Social media has been shaped primarily by three factors: users, trends, and technology. Users adapt to the trends, while technology influence trends. With social media, all three blended and changed the way we live, communicate, and even do business.
If you’re not on social media, you are ignoring the prowess it provides to your business. So, how much of an impact does social media make today?
Here is an infographic that shows the important social media figures in 2016:
Growth in Advertising Revenue
Businesses are starting to realize the impact of social media, as social media advertising revenue reached $10.9 billion in the second half of 2015. In this period, social media accounted for 18% of all online advertising revenue, up from to 14% in 2014.
This is mostly connected to the increasing amount of time people spend on social networks—Facebook continues to lead the race as the most dominant platform used. In the second quarter of this year, Facebook’s advertising business has generated $6.02 billion in revenue.
Mobile technology continues to fuel this growth, and businesses can expect double-digit increases in ad revenues in the next few years.
Social Media Users on the Rise
If there’s anything that these figures will tell us, it’s that social media will only get bigger. By 2019, experts estimate there will be 2.72 billion social media users globally. Social media usage and consumption habits are unlikely to change over time, as today’s generation of audiences will still be your audience in the next few years.
Mobile platforms are becoming more relevant, as shown by the 121.8 million users who accessed the Facebook app. It’s no longer an option to make sure your business are easily accessible in mobile social apps—you SHOULD be there.
Social media is also a major influence on consumers purchasing decisions. 20% of US consumers follow brands on social media to receive updates and promotions. This is further divided in two demographics: age and gender. 40% female and 28% male with ages 18-35 discover new products through social media accounts of friends, colleagues, family.
How Small Businesses are Using Social Media
Small business owners are quick to jump on the social media bandwagon, and it’s brought them more than just online presence. In the first quarter of 2016, 79% of small business owners in the U.S. use social media to connect with customers. The valuable data and the convenient way to reach customers are among the primary reasons SMBs remain on social.
As a marketing tactic, 32% of small businesses prefer to use social media. Behind every Tweet, Facebook Like, or Instagram photo lie great customer insights that small businesses can use to their advantage. Moreover, connecting to customers help in establishing brand awareness and loyalty, and this is enough to spur businesses into social media activity.
It’s no surprise that video marketing is also on the rise. In the first quarter of 2016, Facebook reached its 100 million hours of video watched per day, and this says a lot about how customers are treating videos they find online. Videos offer quick information, and it’s what most customers are looking for. In the last 12 months, 55% of SMBs created or outsourced a video to share on social media.
What Do These Stats Mean to Your Business?
Everything. Today’s social media is introducing a new scale of marketing that businesses cannot and should not turn away from, and these stats are here as proof. Unless you want to stay behind the pack, you should start developing a solid social media plan and getting your business right in front of your audience.