Spending on Social Media Ads are Set to Hit the Roof

According to a recent Local Media Annual Forecast (2010 – 2015) by analysts at the advisory services company BIA/Kelsey, ad revenues for social media sites were set to rocket from $2.1 billion in 2010 to $8.3 billion in 2015. 

Display advertising continues to be the major source of advertising on these social media networks and is expected to draw in $7.7 billion in 2015 – up from $2.1 billion last year.  Other sources of social media advertising, such as promoted tweets on Twitter, currently generate negligible income but are forecast to become popular over the next few years and are projected to generate $600 million by2015. 

It is no surprise that Facebook currently tops the list of generating the most revenue from social media ads, with an eMarketer report last January stating that Facebook’s ad revenues had gone up to $1.86 billion.  As the most popular social network site Facebook has more display ad impressions than both Yahoo! and Google and it is predicted that their ad share as well as revenue will continue to increase. 

These figures show that over the next few years there will be increased advertiser spending in social media. For both small and big businesses, therefore, it is important to understand the social media landscape.  Questions such as where, when and how to advertise on social media networks will become increasingly pertinent as competitors continue to spend more and more in the area.  Keeping abreast of recent innovations in social media advertising and pioneering new social media advertisements could be the difference between a successful and unsuccessful social media campaign. 

Some of these questions have been answered on this blog before, however for more advice on this why not visit Pipon’s twitter and Facebook pages, or visit our website for more information.