A report from a major technology company has found that the advertising industry in Australia is the second-largest user of social media ads on the continent, after the US.
Key points: The company that did the research found that Facebook’s ad platform, WhatsApp, had a much larger share of social advertising revenue than any other major player.
It was second only to Google, with a 25.5 per cent share.
The study also found that in 2016, Australia had the highest percentage of Facebook ad spend in the world, at a whopping $2.7 billion.
Facebook’s $2 billion ad spend Australia has the second largest share of Facebook’s social advertising revenues in the continent.
The company is heavily reliant on the social platform for its ad revenues.
This year, Facebook spent $2bn in Australia, with $2,723 per Australian user, according to data from Canavan, a research company.
Canavan’s data showed that Facebook was second to Google in social ad spend, behind only Google, and that WhatsApp had a larger share than any major player in the industry.
The firm also found a strong correlation between Facebook’s revenue growth and the number of Facebook users, as well as a “growth of more than 100 per cent” for WhatsApp.
But the firm found that, in 2016 it spent $721 million in Australia on its advertising business, while in 2015 it spent just $1.3 billion.
The trend is “striking” and “a significant contributor to the industry’s overall growth”, Canavan said.
“We are now seeing a shift in focus towards mobile, and as such the need for greater social content is greater,” the company said.
Facebook is the most successful platform in the advertising space in Australia.
But Canavan found that while Facebook is gaining a foothold, it is still far behind the big players, with Instagram and Google.
The research also found significant variation across Australia in the amount of money spent on social media advertising, with the most money spent in Sydney, Melbourne, Brisbane, Perth and Adelaide.
The figures revealed that $2 per Facebook user is a huge amount for the social network, compared with $1 for Google, $2 for Instagram, and $2 to Facebook.
This means that users in Sydney and Melbourne, who spend a combined $3 per Facebook account, are paying more for their Facebook ads than those in Perth and Brisbane, who each spend $2 on social ads.
The most-used social media platform in Australia?
Facebook’s mobile app, which can be downloaded from the Apple App Store and Google Play.
The biggest advertisers are in Sydney’s CBD and the eastern suburbs.
In 2015, there were more than 6 million Facebook users in NSW, according a Canavan report, but by 2016 that number had fallen to less than 2 million.
The Canavan study found that users spent an average of $2 in Facebook ads on mobile devices each day in 2015, but in 2016 that figure had fallen by nearly half to $1 per Facebook post.
Facebook spent more than $1 billion in Australia in 2016.
However, the company has been battling criticism for the privacy policies it uses and the fact that it doesn’t make a profit from its social media products.
The issue has been a source of frustration for advertisers in recent years.
The Sydney Morning Herald reported in February that Facebook had spent $60 million on legal fees in the US and $50 million in China to fight a court order to turn over data on some users.
“It’s not just about privacy,” Mr McKeon said.
“[We’re] trying to be more transparent about the platform.”
“We want to be a better company.”
Facebook’s move into advertising is likely to continue as it expands its reach.
In 2020, it plans to expand its advertising operations in China, South Africa and the Middle East, the Sydney Morning News reported.
“What we’re trying to do is build a better business and make sure that we’re not a third-party company, that we have to pay a royalty on everything we generate,” Mr Canavan told the ABC.