Social Ad Spending per User Remains Highest in North America - eMarketer

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Social Ad Spending per User Remains Highest in North America

North American advertisers spend more than twice as much per user as those in Western Europe

January 6, 2014

Social network ad spending is on the rise around the world, and spending per user is going up in every region even as new users continue to flock to social platforms. North America far outpaces any other region in spending by this metric, according to eMarketer estimates, and will continue to do so for the foreseeable future.

eMarketer estimates advertisers will invest $32.82 on social network advertising per social network user in North America this year, up from just over $26 in 2013. That’s more than double per-user spending expected in Western Europe, the No. 2 social network ad market by this measure. Spending per user drops off sharply after the first two slots, with third-place Asia-Pacific only reaching a projected $3.60 in social network ad spending per user.

Social Network Ad Spending per Social Network User Worldwide, by Region, 2012-2015

The figures include spending on paid advertising that appears on social sites, but do not include nonadvertising marketing expenses such as creation of social content or maintenance of brand pages.

Overall, social network ad spending is growing most quickly in the Middle East and Africa, though even in a relatively mature region like North America eMarketer expects solid double-digit growth over the next two years.

Social Network Ad Spending Growth Worldwide, by Region, 2012-2015 (% change)

eMarketer bases all of our forecasts on a multipronged approach that focuses on both worldwide and local trends in the economy, technology and population along with company-, product-, country- and demographic-specific trends as well as trends in specific consumer behaviors. We analyze quantitative and qualitative data from a variety of research firms, government agencies, media outlets and company reports, weighting each piece of information based on methodology and soundness.

Additionally, every element of each eMarketer forecast fits within the larger matrix of all our forecasts, with the same assumptions and general framework used to project figures in a wide variety of areas. Regular re-evaluation of each forecast means those assumptions and framework are constantly updated to reflect new market developments and other trends.


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