Social Network Ad Spending to Exceed $3 Billion in 2011
New research indicates that advertisers are poised to spend more than $3 billion on social network advertisements in 2011, and increased spending on Facebook ads accounts for the bulk of this increase. This figure is more than 55% greater than the approximately $1.9 billion spent on social advertising in 2010.
Perhaps more interesting is that spending on social network advertising now accounts for more than 10% of the total amount spent on advertising in the United States. One reason that advertisers are increasingly drawn to social networks is that the wealth of personal data provided by users enables advertisements to be far more targeted than in most other ad mediums. And, because social platforms can track actions such as clicks, ad performance is more easily measured. In an era of tightening budgets, such accountability makes justifying spending simple!