Facebook To Dominate $3 Billion Online Ad Expenditure in 2011


Social media has become the preferred choice for business segment for online advertisement across the globe. Advertisers are betting big on social media compare to other traditional advertisement system. As per the latest market research, U.S. alone will spend more than $3.08 billion on social media advertisement in 2011, increasing 55% more expenditure than last year which had recorded $1.99 billion.

As per the latest report by emarketer, the social network expenditure in U.S. will rise by further 27.7% by the end of 2012.

However, the growth of social media expenditure is not that impressive compare to other countries, claims emarketer. In 2011, U.S. is predicted to spend around 10.8% of total online ad expenditure on social media marketing. In other countries the same expenditure is about to rise by 71.6% to $5.97 billion which is far impressive than U.S, claims emarketer.

The primary driver of the change in projected spending is greater ad spending on Facebook, by far the biggest player in the space. Tough, the growth of Twitter, Foursquare and few other prominent players also has significant contribution in such online ad revenue.

”2010 was the year that Facebook firmly established itself as a major force not only in social network advertising but all of online advertising,” said eMarketer principal analyst Debra Aho Williamson, author of the upcoming report “Worldwide Social Network Ad Spending: 2011 Outlook.” “In 2011, its global presence is something multinational advertisers can’t ignore.”

eMarketer predicts ad spending on the world’s top social network will reach $2.19 billion in the US this year and just over $4 billion worldwide—both more than double last year’s figure.

“If Facebook can continue to increase its global user base and boost the amount of revenue it generates per user, it could even surpass these forecasts,” Williamson said. “Facebook must continue to innovate its user experience and its ad platform.”

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