Social networks are steadily increasing the amount of share in online spending on advertising in the United States.
The latest report from eMarketer, shows that of the US$69-billion marketers will spend on online advertising worldwide this year, 8.7% will be committed to online advertising. The figure is set 10.2% of US$79-billion to spent in 2012.
The rise has been attributed to Facebook. By next year, half of spending will take place outside the United States, which until now has been where social media marketing has been concentrated. Facebook is expected to have US$4-billion in ad revenues worldwide, with Twitter attracting US$150-million. In total, Facebook will receive 68% of all social network ad spending worldwide.
Debra Aho Williamson, eMarketer’s principal analyst and author of the new report, Worldwide Social Network Ad Spending: 2011 Outlook, says marketers are brings integrating social media into their overall platforms. “As they do so, advertising in social destinations is becoming a more logical part of their plan.”
In some emerging markets, mobile in the primary way users access social networks, which means that along with the rise in mobile advertising, ads are likely to be integrated in their mobile versions.
“The scepticism of a few years ago has faded; large brands are allocating more marketing budget to social media than ever before, and their social network ad spending is also rising,” explained Williamson.
She added that the two categories of advertisers are emerging: “major brand marketers that increase budgets gradually, and performance advertisers that spend heavily and bring extensive search marketing expertise.”
eMarketers report notes that Twitter is rapidly deploying its ad products in the US and will soon be selling ads internationally. In a full forecast for the company, Twitter is expected to attract $150 million in advertising this year, with $250 million in 2012. It is expected to surpass spending on Myspace in 2012.
The report adds that “social games will start to make a dent in the market”.
“Although advertising trails virtual goods as a revenue stream for social games, eMarketer still expects marketer expenditures of US$274-million worldwide this year and US$417-million in 2012.”