20% increase in ad spend indicates marketing in social networking environments on the rise.
Today, eMarketer reports that 6.7% of all US Internet advertising will be toward social media networks this year. The estimate is that social network ad spending will approach $1.7 Billion.
The increase may be coming from a gradual economic recovery and today’s marketers willingness to spend more. It may also be because marketers realize the time their target audience is now spending on social networking sites. Although the younger generations are heavily active in social networking sites like FaceBook, the faster growing demographic is the older generations. Marketing where the people are means having a presence in social media.
Strong performance from online ad spending in general, and FaceBook in particular, has resulted in the increased forecast.
Facebook remains the headliners and will receive half of all social network ad spending in the US. Twitter, which finally launched its ad business earlier this year, is incorporated into eMarketer’s forecast for the first time. While spending on the microblogging service will be low in 2010, the potential for 2011 and beyond could be dramatic if it proves that its “resonance” model of measuring advertising effectiveness works.
If your focus is outside the US, there is an opportunity to get in early as the non US growth is even greater this year and in the near future. eMarketer estimates just over half of social network ad spending worldwide will come from the US, but 2011 will bring a reversal in that proportion.
Companies that are getting in to this space or wanting to enhance their presence should consider turning to consultants and agencies who have experience helping businesses get set up properly. Beginning with a strategic plan and setting up analytics as a way to measure activity and results will provide valuable insight to expanding and adjusting additional social media marketing tactics going forward.














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