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The social networking market size is estimated to grow by USD 238.4 billion at a CAGR of 19.96% between 2023 and 2028. The market's expansion relies on several factors, including the increasing penetration of the Internet, collaborations and partnerships among companies, and the surging demand for video content. These factors collectively drive market growth, indicating a shift towards more interconnected and content-driven digital landscapes. As Internet penetration deepens, collaborations and partnerships among companies have become more prevalent, facilitating the development of innovative solutions and services. Additionally, the rising demand for video content underscores a broader trend toward digital consumption and engagement. This convergence of factors underscores the market's evolution towards more interconnected, content-rich, and collaborative environments, reflecting a broader shift toward digitalization and connectivity in various industries. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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The market share growth by the advertising segment will be significant during the forecast period. In 2022, the advertising segment accounted for the biggest market share compared with the other segments. Social media advertising is the practice of using social media to connect with the target audience; social media apps facilitate highly tailored advertising campaigns on social networking sites.
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The advertising segment was valued at USD 76.90 billion in 2018. Some of the most popular ad formats include static image ads, video ads, story ads, and messenger ads. The growing popularity of social media platforms for promoting brands and increasing product awareness is driving the growth of the market. Additionally, increasing sales of consumer products through advertising is expected to boost market growth. About 50% of the global population uses social media, which means that the segment will grow during the forecast period, which, in turn, will boost the growth of the market in focus.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America is home to some of the world's largest social networking companies, including Facebook, Twitter, and LinkedIn, among others. These companies dominate the networking landscape in the region, with millions of active users across the region. An increasing trend in the US is the launch of technologically advanced video reel-based apps with video editing support features. Moreover, nowadays, the increased use of social networks by businesses for marketing purposes is expected to fuel the growth of the market in the region.
The market is thriving, with B2C enterprises focusing on in-app purchases and the purchase of apps. It embraces a bottom-up approach and utilizes independent databases for performance tracking. With a vast user base of smartphone users, the market is adopting the S-curve function for growth. Leading platforms like Signal, Facebook Messenger, and iMessage dominate the space. Amidst national lockdowns, these platforms have become essential for staying connected and entertained, offering a variety of content, including theatre, sports, art, music, and games. As the market evolves, addressing data security concerns and integrating 5G technology are becoming paramount.
Increased Internet penetration is the key factor driving the growth of the market. They have seen a huge increase in demand over the years due to a variety of factors, such as increased Internet Penetration. Facebook, YouTube, and WhatsApp are the most popular platforms worldwide, representing a significant and sustained increase in demand for these platforms. One of the most important effects of the increasing Internet penetration is the growing user base of these platforms. Moreover, as the Internet becomes more pervasive, social networking platforms are creating more diverse and active communities. With more and more people having access to the Internet, users can connect with others who share similar interests and values regardless of their geographical location. This creates new online communities, strengthens existing ones, and fosters interaction and engagement.
Further, another impact of increased internet penetration on social networking is indeed the emergence of new social networking platforms. This trend is further fueled by the growing number of smartphone users, who have access to platforms like Facebook Messenger and other Messaging site. Additionally, e-commerce platforms and music streaming services are leveraging social networking features to enhance user engagement and offer more personalized experiences. As more people gain access to the Internet, entrepreneurs and innovators are creating new social networking platforms to cater to the diverse needs and interests of users. Finally, increased Internet penetration has also led to the proliferation of these apps and mobile devices, which have made it easier for people to access these platforms on the go. This has further increased the reach and impact of this networking on individuals and society, which will have a positive impact on market growth during the forecast period.
Social media advertisements gaining traction is the primary trend in the market growth. This advertising has seen tremendous growth in recent years. The prevalence of social media means that businesses can reach large numbers of users through social media advertising. Social media advertising is highly effective as social media platforms offer advanced targeting options. This allows businesses to reach specific audiences based on their demographics, interests, and behaviors. This means businesses are more likely to create relevant ads that are clickable and convert to sales.
The rise of influencer marketing on these platforms has also contributed to the growth of social media advertising. Businesses can partner with popular influencers to promote their products or services to their followers by leveraging the influencer's credibility and reach. Overall, the growth is expected to continue during the forecast period as more businesses increasingly turn to social media as a key marketing channel, which, in turn, will boost the growth of the market.
Privacy concerns are obstructing market growth. These platforms are often criticized for collecting and sharing data from users without their knowledge or consent. Many users are concerned that their personal information may be compromised, leading to identity theft and other cybercrime. We often collect large amounts of personal data from our users. This data may be used for targeted advertising or sold to third-party companies, raising concerns about user privacy and data security. Social networks use tracking technologies such as cookies and device IDs to monitor your online activity across multiple websites and devices. This allows to create detailed profiles of users, which can be used for targeted advertising and other purposes.
Users unwittingly share personal information on social networks, such as their full names, addresses, or phone numbers, which can be used to identify them. This can lead to identity theft, stalking, and other privacy violations. Social networks may be vulnerable to hacking and other security breaches, which can expose the personal information of users to unauthorized parties. Overall, social networks can be a valuable tool for connecting with others and sharing information, but users should be aware of the potential privacy risks and take steps to protect their personal information. This can include using strong passwords, adjusting privacy settings, and limiting the amount of personal information that they share on social networks. Such factors will hinder the market growth during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers social media platform to share videos, add comments, likes, dislikes, and add short reels through its subsidiary called YouTube.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Performance indicators are increasingly influenced by the level of digitization across various sectors. Consumer attitudes toward e-commerce platforms and Big Tech companies are shaping trends, while exchange rates impact global market dynamics. The rise of live streaming videos and OTT platforms highlights the demand for high-quality content, supported by AI-based libraries for better user experience. 3D image context and customized photo collages are becoming popular features, accessible through cloud-based apps on Android and Apple iOS-based devices. With the advent of 5G technology, social networking is expected to become deep, offering new experiences on smartphones, tablets, smart TVs, and other devices. The Google Play Store, Apple iOS store, and Microsoft store offer diverse applications, including BADA project templates for laptops. As data security concerns grow, maintaining the protection is critical. The Business of Apps and the evolving landscape of Android & iOS-based platforms reflect ongoing innovations and consumer preferences in the tech industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.96% |
Market Growth 2024-2028 |
USD 238.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.25 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, China, UK, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Automattic Inc., ByteDance Ltd., Discord Inc., LinkedIn Corp., MediaLab.Ai, Meetup, Meta Platforms Inc., Myspace LLC, Nextdoor Holdings Inc., Pinterest Inc., Quora Inc., Rakuten Group Inc., Reddit Inc., Snap Inc., Telegram Messenger Inc., Tencent Holdings Ltd., Twitter Inc., Yelp Inc., and Z Holdings Group |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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