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Predictions for Social Media Advertising

Last updated 6 years ago

Every business owner should periodically review their marketing strategy, what is working and what isn't, and what adjustments need to be made to get the best return on investment for advertising dollars spent. One big area of focus for many businesses this year will be social media advertising. Social media advertising is expected to take up a whopping $12 billion global market share by the year 2014.

Revenue Source Predictions for 2012

It is expected that almost half of social media advertising dollars spent will be from businesses in the United States, while worldwide social media advertising revenue will increase by 50%.

Dollars invested in advertising are not just on the social websites themselves, but also in apps and games. Growth is expected to be much more rapid in 2012 than in 2011; however a decrease in growth is expected in 2013-2014 although it will remain in the double digits.

Social Network Advertising Revenues

In 2011, an estimated $2.5 billion was spent on social network ads in the U.S. alone. It is estimated the figure in 2012 will hit around $3.6 billion and by 2014 will reach $5.5 billion.

While the ad revenues in the U.S. are expected to be less than the global average for 2011 to 2013, it is expected that in 2014 social media advertising spending in the U.S. will exceed figures for the rest of the world. This will place the U.S. share of spending on social network advertising at half of the total worldwide.

Social Network Spotlight

The primary target for advertisers is FaceBook, with the network garnering 7 out of 10 U.S. advertising dollars spent in a specific forecast period. Here's a breakdown of where other networks are expected to be in 2012:

* FaceBook - 71%

* Social Networking Games - 7%

* Twitter - 6%

* LinkedIn - 4%

* Other networks - 12%

The network ad revenues remain for the most part consistent into 2013 and 2014, with a predicted 4% fall on FaceBook, a 2% decrease on games, and a 2% increase on Twitter in 2014.

It's plain to see that businesses realize the importance of social media advertising in their marketing plans, and those without a percentage of ad revenue set aside for these venues would be wise to re-evaluate ad targets for 2012 and going forward.

How much of your budget this year will be spent on social media advertising?

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 annual 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.

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