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January 5 , 2010

Social network ad spending: 2010 outlook
Facebook owns 25% of global ad spend

Going social is no longer an experiment for marketers; it is a reality. There is no question that companies and brands are investing real dollars in social network marketing. 2009 will end with major shifts in advertising spending in this area.

eMarketer estimates that marketers will spend $2.5 billion worldwide in 2010, a 14 per cent increase over 2009.

Marketers will continue to make social networks a priority for 2010, but a significant portion of their spending will go towards building and maintaining a social network presence – known as earned media. Paid social network advertising will remain somewhat of an afterthought, according to the report.

“Concepts such as earned media, local social advertising, social search and social ad networks will be key themes this year,” says Debra Aho Williamson, eMarketer senior analyst and author of the report, Social Network Ad Spending: 2010 Outlook. “Paid advertising will not be the primary focus, but it will serve to drive traffic and engagement with the larger social network presence.”

Facebook, at 350 million users worldwide, is the premier destination for marketers in many countries around the world. It will surpass its former rival MySpace, in ad revenues in 2010. Also in 2010, Facebook will account for nearly one-quarter of all social network ad spending worldwide, up from 20 per cent in 2009.

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