Where Does The Big Big Advertising Money Go On Social Media?

Google controls about 37% of digital ad spending in the U.S., ahead of No. 2 Facebook at 22%, . Digital advertising is the main way the search giant and parent Alphabet Inc. make money. The company reported $116.3 billion in ad revenue last year, which represented 85% of total sales.

On social media it’s not a big surprise that Instagram captures the largest share of the big money beauty industry’s ad spend. It is, after all, the major platform of the selfie. Surprisingly  YouTube gets a massive 93% of the biggest cosmetics company’s ad spend.

The  company? L’Oreal.

Maybelline spends 60% on Instagram. 

Sephora spends 43% on Instagram, and another 36% on Facebook. 

Estee Lauder spends 46%. And Instagram-influencers-turned-business-moguls Kylie Jenner and Huda Kattan spend 82% and 78%, respectively, of their profile marketing time on Instagram for their cosmetics empires: 

Instagram reigns supreme for paid campaigns among these four digital channels for top cosmetic brands,” Alon Leibovich, co-founder and CEO of BrandTotal, said in a statement. “Given the younger demographics associated with these brands and the nature of Instagram as an inherently visual medium, it’s a no-brainer that makeup brands make Instagram their platform of choice when it comes to their social marketing strategies.”

Facebook reported advertising revenue up at $16.6 billion for the final quarter of last year, up 30 percent year-over-year. Total revenue earned during the quarter was a massive $16.9 billion, with daily active users at 1.52 billion, up 9 percent year over year. 

Dr Patrick Hillenbrand

Financial Services