Note: Based on further clarification from Socialbakers, all ad spend referred to below relates to social media ad spending.
Sharp increases in social media ad spending helped worldwide ad spend jump by 56.4% in Q3 compared to the previous quarter, according to the Q3 2020 Social Media Trends Report from Socialbakers.
Ad spend for all brands was 27.6% higher in Q3 2020 compared to the same quarter last year, according to the report.
2020 ad spend dropped below 2019 levels in the early pandemic months of March and April, but in May it surpassed the previous year and remained ahead through Q3.
The global spend average at the end of the quarter was nearly double where it had been during the lowest point of the pandemic at the end of March.
The increase was seen most significantly in Northern America, where spend increased by 61.7% during Q3.
In North America alone brands have invested 61% more in Q3 than they did in Q2, largely down to confidence returning as consumers spend more time engaging and purchasing online.Yuval Ben-Itzhak, President, Socialbakers
According to Socialbakers data, the average industry ad spend increased by 38.9% in Q3 2020 compared to where it was at the end of Q2.
That includes large jumps from FMCG Food (up 61.3%) and Auto (up 59.4%) as well as increases in Finance (up 35.3%) and Ecommerce (27.5%).
Ecommerce spending increased 56.5% compared to Q3 2019.
Global ad spend increased and is expected to continue to climb into the holiday season, just as it would in a regular year. The spending in digital has returned to pre-pandemic levels.
“More than ever, today’s consumers are digitally grounded,” says Yuval Ben-Itzhak, President of Socialbakers. “Q3 social media ad spend data shows us that savvy brands are doubling down their investment in advertising across Facebook and Instagram, with ad spend increasing by a phenomenal 56% versus Q2.”
If Q3’s insights show us anything, it’s that brands need to make sure they pivot quickly to follow the consumer trends towards digital. The brands that react quickly today and focus on delivering an outstanding customer experience to their audience online, will be the brands that come out on top tomorrow.Yuval Ben-Itzhak, President, Socialbakers
In a detailed analysis of the turbulent three quarters, the report signals a healthy trust among marketers in the effectiveness of digital channels despite world events.
Download the report from Socialbakers:
Q3 2020 Social Media Trends Report