The Big Boom, or the Effectiveness of Social Media
Why do social media adverts work so well? An analysis of the power of the platforms, targeting and market trends.
According to 2020 figures, 4.574 billion people – 58.7% of the world’s population – are online. The key lies in connecting people and breaking down barriers. In this article, we examine the social media boom and its impact on the advertising market.
The internet originally connected universities and research centres, and then, thanks to Yahoo and Microsoft, began to serve consumer markets as well. The integration of Microsoft’s Internet Explorer into Windows significantly accelerated the spread of the internet. The emergence of Google and the proliferation of broadband internet enabled the rise of social platforms, radically transforming both the consumer and business sectors.
The role of online communities
Online social spaces have become complex social and cultural tools, exerting a huge influence on economic sectors – and creating new advertising models. As Jeff Bezos put it: „People have no idea what impact the internet will have in the future, and that this is just the very first day of a very long journey.”
The history of social media
The founding of Facebook in 2004 was a key turning point. MySpace had got there first with music-based communities, but Facebook offered better marketing opportunities. YouTube was launched in 2005, Twitter in 2006, Snapchat in 2011, and TikTok has recently entered the market with significant advertising potential.
The power of social media
The power of social media stems from community building and the breaking down of space-time barriers. Users freely create content, generating two-way communication. An endless amount of information is available 24/7, from anywhere in the world.
Consumers decide for themselves when and what they consume – personalising the experience. Geographical boundaries are disappearing: anyone can connect globally, share information and form communities based on shared preferences.
Marketing implications
- Independence of place and time
- Precise targeting based on demographic data and location
- Personalisation using cookie data
- Cost-effectiveness – low advertising costs
- Measurable results through feedback and reporting systems
Social platforms create perfect media convergence: previously separate media (TV, radio, print) merge functionally. Audio, visual, text and video content all appear side by side, alongside interactive adverts, offering great flexibility.
Market data
Last year, the internet accounted for more than 40% of the Hungarian advertising budget, representing an annual growth of 16,12%. The digital market has been leading the way over television spending since 2015. Global social media advertising spend grew by 20% internationally, accounting for 13% of global advertising budgets.
Platforms in Hungary
In Hungary, Facebook is the market leader, followed by Instagram. TikTok is growing rapidly among young people, whilst YouTube remains stable. Twitter hasn’t really taken off here, but LinkedIn’s B2B potential is going from strength to strength.