Social Media Advertising – Part II

10 09 2010

Just after my recent blog (9/7/10) on this subject, I saw a very interesting article on Mashable that offers some interesting numbers and analysis around social media advertising trends.

Some of the key points of the article include:

  • eMarketer projects that social will account for 6.7% of the total online ad spend this year.
  • The 2010 spending forecast for advertising on social networks is projected at $1.68 billion in the US, up 30%
  • Total social media ad spending is expected to pass $2 billion next year.
  • The big winner in this space is Facebook, with revenues projected to pass $1 billion this year.

In addition to Facebook, the article goes on to describe Promoted Tweets on Twitter where a company can insert a brand-sponsored topic into the trending topics list.  This program is in the early stages and is well worth watching.

Why the Move to Social Media Advertising?

  • The average user is now spending more time on Facebook than on Google according to comScore.
  • Nielson says that the average person spends more than seven hours per month on Facebook.
  • It’s effective 1: Social media lets companies target their audience much with much greater exactness.  The result: context-relevant ads and messages that are useful to end-users.
  • It’s effective 2: Social media lets the community digest messages if and when the want them, rather than interrupting their TV, reading, or radio experience.
  • Location-awareness offers the prospect of making messages even more relevant, helpful, and entertaining.
  • But, maybe most important of all, social media offers the opportunity for companies to engage in a two-way conversation with their communities 24x7x356.

The bottom line is that social media is where people are spending their time.  Social media also offers an opportunity to really engage with customers rather than just “drive-by selling.”

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