Social Media advertising spend is expected to reach $8.3 Billion by 2015.
Let’s take a moment to digest this information from a study done by BIA/Kelsey. $8.3 Billion dollars. That’s almost four times as much as was spent in 2010 (a mere $2.1 Billion)! $7.6 Billion of that will be spent on display ads, the majority of which will be on Facebook.
Facebook already commands more ad impressions than both Google and Yahoo – something that shouldn’t be shocking considering the average Facebook user spends over 45 minutes a day logged in. They raked in an astounding $1.83 Billion in advertising revenue in 2010, so if it follows the Social Media advertising growth pattern, it makes sense that Facebook would generate the majority of the $7.6 Billion spent on display ads.
It’s no surprise that more and more advertising dollars are moving away from traditional media and are transitioning to digital media. It’s also not surprising that Facebook is the leader in the social media advertising space. However, this growth in the Social Media space indicates a larger trend: Social Media is not going away any time soon.
Digital agencies are already starting to offer Social Media services to their clients, and rightly so. Companies need a social presence to communicate their brand image with their consumers. Social Media Advertising, while valuable in places, is only part of the solution. The challenge for agencies is no longer answering the questions: Is Social Media necessary for my brand? Now, the challenge is answering: How do we use Social Media the right way to build our brand and engage our consumers where they spend their time?
As digital marketers, Imaginuity and I are excited to see what innovative ideas will come from this growth. And most of all, we’re looking forward to contributing to this movement.
What do you think of the growth in Social Media advertising? How substantial will the Social Media marketing industry’s growth be in the next 5 years?