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What is TAM (market size) of small business advertisement (1-19) on Google and Facebook and what will it be in 5 years?
Hello! Thanks for your question about the market size of small business advertisement on Google and Facebook and the 5 year growth prediction. The short version is that after searching extensively academic databases, corporate websites, industry reports/surveys, government reports/databases, trusted media sites, and statistics websites, I’ve determined that the information you requested is not publicly available because no one has broken out that data by the small business size you have requested, nor is there reliable detailed information on the marketing budgets and spends of small businesses globally. However, I was able to roughly estimate the global Google and Facebook spending by small businesses at $95.643 billion and that it will reach $164.64 billion by 2020. Below you will find a deep dive of my research and methodology.
METHODOLOGY
After searching exhaustively, I have not been able to find any statistics to use to calculate exactly what you had asked for: the small business advertising for companies of only 1-19 employees. Because this data was not available, I determined to find the market share (and growth) by all businesses that were considered “small”. Keep in mind, that the defined number of employees may shift from source to source.
To do this, I worked in four steps:
Step 1: Calculate the Google and Facebook combined worldwide digital advertising revenue.
Step 2: Calculate the number of small businesses globally.
Step 3: Calculate the Google and Facebook digital spending by small businesses.
Step 4: Calculate growth.
Please keep in mind that all of these are rough estimates based on the best information sources I could find. Also, since you didn’t specify a geographic area, I wanted to give my research a global focus.
STEP 1
Combined Google and Facebook (2016) – $106.27 billion
For extra information, there is a worldwide digital ad revenue (2016) of $194.6 billion. This gives a Google and Facebook combined share of the worldwide digital advertising revenue of 54.6%.
STEP 2
This equates to over 207 million small businesses worldwide. However, this does not hold to the definition of 1-19 employees that you requested.
STEP 3
Since the total Google and Facebook ad revenue is $106.27 billion, and (assuming) 90% of that is used by small businesses, this would put the Google and Facebook spending by small businesses at $95.643 billion.
STEP 4
The worldwide digital ad revenue is expected to grow by a factor of 1.72 to $335 billion by 2020. If we apply that same figure to the small business Google and Facebook spending, this will reach $164.64 billion.
This, however, does not take into account if there becomes a shift in the total market share of Google and Facebook becoming higher than 54.6%. There was no data to come to a reasonable conclusion on this.
CONCLUSION
To wrap it up, after searching extensively through academic databases, corporate websites, industry reports/surveys, government reports/databases, trusted media sites, and statistics websites, a direct answer to your question is not publicly available because no one has broken out that data by the small business size you have requested, nor is there reliable detailed information on the marketing budgets and spends of small businesses globally. However, I was able to roughly estimate the global Google and Facebook spending by small businesses at $95.643 billion and that it will reach $164.64 billion by 2020. Thanks for using Wonder! Please let us know if we can help with anything else!