20 January 2011 by Web Bureau
According to eMarketer analysts, US businesses will spend almost $4billion to advertise on social networking websites in 2011, a figure which represents a 55% increase compared to 2010 figures. This means almost 11% of all expected online advertising in the US will be channeled through social networking websites.
Growth is also forecast on a worldwide scale, with advertising on social network sites rising by 71.6% to just under $6billion, that’s 8.7% of the total amount marketers are expected to spend on online advertising in 2011.
The principal analyst of eMarketer’s latest report, Debra Aho Williamson, attributes the huge increase to the success of Facebook in 2010:
“2010 was the year that Facebook firmly established itself as a major force not only in social network advertising but all of online advertising. In 2011, its global presence is something multinational advertisers can’t ignore.”
It comes as no surprise that Facebook is expected to take the lion’s share of the increase but these figures remind us once again of the effect Facebook is having on online behaviour, on the part of both consumers and marketing professionals.
Furthermore, it is not only multinationals who should take advantage of the benefits of target advertising through social media websites. While Facebook continues to prioritise user experience and broader, more interactive participation, it remains a vital tool for start-ups and expanding businesses.