Social Network Ad Revenue Soars Past $5 Billion in 2011
We’ve all know for quite some time that social media is smack dab in the middle of our society’s consciousness. It’s so pervasive to the point that you’d have to be living under a rock to not see and hear words like “Facebook,” “Twitter” and “Social Media” on a nearly daily basis.
That said, it should not come as a surprise that the commerce centered around social media is not only vibrant, but growing by leaps and bounds. According to Cynthia Boris over at Marketing Pilgrim, ad revenue related to social media was just about $2 billion in 2009. Fast forward to 2011, and a report from eMarketer expects that number to be north of $5.5 billion by the end of the year and reach $10 billion worldwide in 2013.
Since Twitter is still in early stages of monetizing its business, Facebook is the dominant force in ad revenue in the social media realm, with nearly $4 billion of revenues going to the social giant. Coincidence or not, the eMarketer report on the growth of social media ad revenues coincides with a recent presentation by Facebook ad executives encouraging businesses to expand their marketing initiatives on their website.
David Fischer, head of global advertising and operations at Facebook, emphasized the company’s new features, such as the timeline and new applications that make sharing your interests and activities easier. So users can not just “like” something, they can say what they are “cooking,” “reading,” or “watching.” This will encourage more sharing, according to Fischer… something that can be good news for advertisers.