Social Network Advertising on the Rise

02/04/2011

While Facebook is the main driver behind ad revenue for social networks, total social network advertising is expected to account for 10.8% of the online market in 2011, according to eMarketer.

There are different ways for marketers to invest in social media. Advertising on social networks is becoming more attractive as online direct marketers are starting to embrace the targeting and reach capabilities of social network sites.

10.8% (of the online market) predicted by eMarketer equates to $3.08 billion marketers will spend this year to advertise on social networking sites. It is also predicted that advertising spending on Facebook will hit $2.19 billion in the US in 2011 and exceed the $4 billion mark globally. Both of these numbers are more than double the prior year’s amount.

In 2010, Facebook alone generated $1.86 billion in revenue. The popular social networking site serves over 50 billion display ads each month and is on pace to serve 1 trillion display ads for the year. Note: the $1.86 billion excludes virtual currencies.

AdAge reported that 60% of the advertising revenue earned by Facebook came from small businesses and the other 40% ($740 million) from large brands such as Coca-Cola and Match.com. This surprised some analysts and industry experts that expected a larger portion of the ad spend to come from major brands. However, it shouldn’t surprise direct marketers that recognize smaller and mid-size businesses often focus budgets and efforts around initiatives that will provide a direct return on investment.

Facebook advertising, for example, can indeed drive new customers. As the top online destination, it has tremendous potential for online direct marketing success. A media strategy within social media can be applied and yield measurable results.

To learn more about how social media advertising can be integrated into your online direct marketing mix, contact us at 866.922.4632 or request a consultation.