Instagram Leads Advertisers’ Growing Social Media Spending
Brands are directing a growing share of their advertising dollars toward social media. Media technology company 4C reports that in the U.S, advertisers’ fourth quarter 2016 spending on Facebook, Instagram, Twitter, LinkedIn and Pinterest grew 65 percent, year-over-year, and was up 43 percent compared to the previous quarter.
Leading this growth is Instagram. Advertisers’ year-over-year spending on the Facebook-owned picture-sharing platform grew 138 percent in fourth quarter. More than 600 million people use Instagram; 100 million users joined in the previous six months of 2016. 4C reports that the fastest growing advertiser categories on the service are home and garden, up 403 percent, and services, up 264 percent.
Facebook added a number of features for advertisers during the final quarter of 2016, including updated metrics and reporting, and its Creative Hub and Live 360 services. Year-over-year, advertising on Facebook was up 74 percent in fourth quarter 2016, with growth proving strongest in the home and garden (503 percent) and government (190 percent) categories.
By the end of 2016, more than 150 million people had joined Pinterest and in November the platform introduced “Pinterest Marketing Partners” program to help advertisers find success on the site. It also closed out the year with the launch of a number of features for advertisers, including targeting enhancements, promoted video capabilities and showcases. Pinterest’s fourth quarter 2016 advertising spending was up 109 percent year-over-year, and Consumer Packaged Goods (70 percent) and Retail (63) percent were among its fastest growing advertiser categories.
Twitter also added several new services useful to advertisers in 2016—live video within the Twitter feed, new conversation features and emoji search capabilities, among others. Its year-over-year advertising growth of 13 percent was driven in large part by the services (300 percent), and apparel and footwear (94 percent) categories.
LinkedIn’s acquisition by Microsoft closed in December 2016, and it ended the year with year-over-year ad growth of 130 percent for fourth quarter. Fourth quarter’s performance was up 50 percent from the quarter preceding it.
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