These days, companies around the world are realizing social media advertising is an important online marketing method to reach their target audiences. For 2012, social media advertising in the U.S. is expected to reach $3.9 billion, which is an increase of $1.16 billion compared to 2011. Not convinced? Check out the latest stats on social media advertising from eMarketer:
Can you guess which social media site currently holds the number one position for the largest social media ad revenues? You may already know: Facebook. In 2012, Facebook is anticipated to hit around $6 billion in ad revenues and reap 72% of all social media advertising revenues. That is a huge chunk compared to its competitors, including Twitter and LinkedIn. Facebook’s dominating position isn’t predicted to fall anytime soon either. The social media giant is projected to beat Yahoo this year by becoming the number one site for U.S. display ad revenues.
Debra Aho Williamson, eMarketer principal analyst, recently explained Facebook’s status in the social media advertising market:
“With $7 of every $10 in social network advertising flowing to the company, Facebook is taking not only a greater share than ever of social network ad spending, but also an increasing proportion of total online ad spending. Although its ad offerings and metrics aren’t perfect, marketers still feel they need to be there to reach their target audience” (eMarketer).
With such a solid position in the market, why wouldn’t Facebook’s ad revenues continue to grow? Is your company planning to invest in social media advertising in 2012? If so, will next year’s budget represent an increase compared to previous years?
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.