Agencies Say No to Social Media Ads for Lead Generation - eMarketer
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Agencies Say No to Social Media Ads for Lead Generation

Facebook is the most popular social site when they do purchase ads

December 7, 2011

While advertising and public relations agencies work with client campaigns on social networks, many of these agencies are not taking advantage of advertising for themselves in a social setting.

Digital marketing agency lonelybrand asked senior marketing executives from agencies about their work in social networks and only 17% said their companies currently purchase ads in social networks to assist in digital lead generation.

However, of those companies that do advertise on social networks, many are spending several thousand dollars a month on purchasing ads. Among agencies that purchase advertisements on social networks, 23% said their companies spend more than $10,000 a month on ads. On the other end of the spectrum, 32% spend less than $1,000.

Amount US Ad Agencies and Public Relations Firms Spend Monthly Purchasing Ads in Social Networks to Market Themselves, Q2 2011 (% of respondents)

One plus to outreach via social media is that there are options for almost all budgets. Companies can focus on free social media marketing, through Facebook pages or Twitter accounts, but can supplement those tactics with paid advertisements, spending as much or as little—in paid media, at least—as the company prefers.

The lonelybrand data also found that Facebook was the most popular social network for advertising, which is unsurprising given its broad user base. Of all agency respondents, not just those who said they advertise on social networks, 13% said their companies purchase advertising on Facebook, compared to 4% who purchase ads on LinkedIn and 2% on Twitter.

Social Networks on Which US Ad Agencies and Public Relations Firms Purchase Ads, Q2 2011 (% of respondents)

Overall, most companies prefer to focus on marketing on social networks, rather than spending money to advertise. But those that do demonstrate that companies with a wide range of budgets can take advantage of ads to supplement campaigns and generate leads on social sites.

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Check out today’s other article, “Brands and Consumers Make Online CPG Sales a Reality.”


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