Companies are beginning to see the importance of branding and advertising online. Social networking sites are their top priority, but just how much are advertisers willing to spend to promote themselves on sites like Facebook and Twitter?
According to an infographic on AllTwitter, global social network advertising revenues are expected to raise from 2012’s seven million to 14 million by 2014. Sixty-four percent of advertisers said they plan to increase their social media advertising budget by 2013.
Facebook reigns king when it comes to raking in the most advertisers, accounting for 57 percent of all social media advertising budgets. Twitter and YouTube each hold 13 percent each. I think Twitter’s share will raise in the next couple of years because it has grown to an incredible number of 200 million users worldwide. All businesses and companies seem to have a Twitter account these days, advertisers would be foolish not to brand themselves on there.
Interestingly, 46 percent of advertisers said that their main goal for social media advertising is raising brand awareness, and not so much about direct traffic and product sales. This is likely due to the fact that currently a only a small portion of an advertisers budget is dedicated to social networking sites, so they can afford to not push too much when it comes to actual product sales. Seventy percent of advertisers devote 1-10 percent of their online advertising budget to social network sites.
It is going to be very interesting in the years to come watching advertisers compete for viewer attention online. With social networking sites becoming more and more appealing to advertisers, I wonder just how much this will potentially impact the prices and competitiveness of advertisements on social networking sites.