For this year alone, revenues from social media advertising are likely to reach $5.54 billion and the U.S. accounts for just under half of that total at $2.74 billion.
What about for 2012 and 2013? How will the revenues from social media advertising look then? Take a look at the chart below.
As you can see, social network ad revenues are anticipated to increase each year. Keep in mind that these numbers reflect the revenues just from social media ads and not the amount of money that businesses will spend on building their social media presence.
Now that you have seen the anticipated revenue numbers, where do you think the majority of these ad dollars will go toward? You may have guessed it: Facebook advertising.
With this predicted increase in social media advertising, it makes sense to assume that this rising segment will continue to grab a larger share of overall online advertising spending in the years to come. Companies in the U.S. and around the world are realizing the importance of social media advertising to grow their customer base. Have you realized it yet?
Is your company increasing its budget for social media advertising next year? Why or why not? Share your feedback in a comment!
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1.4 million in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a free consultation.
So what’s better? Having social media ads or a social media presence? Share your comments here.
Note: The estimates above were from eMarketer: http://www.emarketer.com/Article.aspx?R=1008625