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Facebook, Social Networks Get Greater Share of Online Ad Spend

Facebook to reap $7 of every $10 spent on social network advertising

November 2, 2011 | Media Buying

More marketers than ever believe their brands should be engaging with consumers on social networks—and advertising is an increasingly successful tool for doing so. As a result, worldwide social network ad revenues will surpass $8 billion in 2012 and approach $10 billion by 2013.

Spending in the US will reach $3.9 billion next year, up from $2.74 billion in 2011. In 2013, US advertisers are expected to spend $4.81 billion on social network advertising, up 23.4% over 2012.

“As more companies build out their marketing presence in social networks, they are also increasing their focus on spending ad dollars there,” said Debra Aho Williamson, eMarketer principal analyst and author of the new report, “Worldwide Social Network Ad Revenues: A $10 Billion Market by 2013.” “Social networks have cemented their place in advertising, not just marketing.”

US Social Network Ad Revenues, 2009-2013 (billions and % change)

Facebook will get the vast majority of social network ad revenues. In 2012, Facebook will tally $5.78 billion in ad revenues, garnering 72% of all social network advertising revenues and 6.1% of worldwide online ad spending. In the US, it will account for 7.9% of all online ad spending that year. This year, it is expected to pass Yahoo! to become the No. 1 site in US display ad revenues.

Facebook Share of Total US Online Ad Spending, 2009-2013 (billions and % of total)

“With $7 of every $10 in social network advertising flowing to the company, Facebook is taking not only a greater share than ever of social network ad spending, but also an increasing proportion of total online ad spending,” said Williamson. “Although its ad offerings and metrics aren’t perfect, marketers still feel they need to be there to reach their target audience.”

The full report, “Worldwide Social Network Ad Revenues: A $10 Billion Market by 2013,” also answers these key questions:

  • How much ad revenue will social networks like Facebook, Twitter and LinkedIn generate between 2011 and 2013?
  • Are ad budgets shifting more heavily toward social networks?
  • Will social games become stronger ad destinations?
  • What effect will Google+ have?

This report is exclusive to eMarketer Total Access corporate subscribers. Total Access clients, log in and view the report now.

Learn more about becoming an eMarketer corporate subscriber today.

Check out today’s other article, “In-Store Buyers Influenced By Online Search.”



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