Ad spending on social networks in US will reach $3.08 billion mark by the end of 2011, according to revised estimates by eMarketer. This years estimated spending would be 55% ($1.99 billion) higher than what advertisers spent on social networking sites in 2010. eMarketer further expects that the ad spendings on social networks would rise by another 27.7% to reach $4 billion in 2012.
Due to the dramatic increase in ad spending on social networks, the social media sites now command a whopping 10.8% of the total ad spent online in the US. The increase in ad spending worldwide would be 71.6% (to $5.97 billion) this year, of which the share of social media sites would be 8.7%.
The renewed estimates for US ad spending on social networks has been $1 billion higher than the previous figures reported by eMarketer in August 2010. The primary reason for the change in projections has been Facebook’s stellar performance in attracting large sums of ad dollars.
According to Debra Aho Williamson, eMarketer’s principal analyst and author of upcoming report “Worldwide Social Network Ad Spending: 2011 Outlook:
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.
eMarketer expects Facebook to rake in $2.19 billion in ads from US and $4.05 billion worldwide in 2011. However, even these figures are not writings in stone, and the tally could be even higher if Facebook keeps up with its remarkable performance, says Williamson.