Social media ad spending is expected to almost quadruple from $2.1 billion to over$8.3 billion by 2015, according to a report from BIA/Kelsey, a media consultancy.
According to the report: “By 2015, $7.7 billion of that $8.3 billion will be from display ads, the firm predicts, and most of that will belong to Facebook, though the report didn’t break out Facebook’s exact share. A rep for BIA/Kelsey says the figures were determined by “third-party and public company reports” as well as BIA/Kelsey’s knowledge of the social media advertising market. BIA/Kelsey‘s definition of social media advertising doesn’t include virtual goods and rewards, social gaming, social commerce or social marketing.”
Social Media Ad Spending | What does this mean?
To put this social media ad spending number in perspective, the Internet Advertising Bureau reported that total U.S. online advertising$26 billion in 2010. By comparison, TV ad spending totaled $68.7 billion in 2010 while newspapers and radio took in $22.8 billion and $15.3 billion, respectively.
Who is going to benefit from this social media ad spending? Most likely Facebook. Facebook is projected to receive the lion’s share of these funds from advertising. In fact, 70% of marketers plan to increase their social media budget by more than 10% this year alone and their main focus is to create more Facebook fans.
With the trending increases in social media ad spending, you can be sure that social media marketing is a concept that is here to stay.