End December, eMarketer published some data showing that social network spending is shifting and adding “Facebook is the go-to destination for marketers”.
Some data and thoughts.
In 2009, social media took off to new heights, with an increase in spending budgets, a unique system of marketing implemented using social networking sites, and a rise in the usage by consumers on the social web.
What budgets increased? What kind of marketing tools were implemented? And what does this mean for the bottom line, the number of potential customers?
The big news on the block is of course the number of customers companies are fighting for on Facebook.
Toward the end of 2009, we saw a big increase in the number of international users on Facebook. The total number, worldwide, hit 350 million users. The total spending for Facebook 2009 came second to MySpace, but it’s projected, and not unreasonable to agree with, that Facebook spending will eclipse all other social networking sites.
Why? That large user number is the big reason. MySpace did maintain more spending in 2009 – 490 million dollars to Facebook’s 435 million – but the spending shift is very apparent. Facebook has gained so many subscribers that many studies are projecting over $600 million for Facebook spending in 2010.
eMarketer analyst and author Debra Aho Williamson wrote a new report, “Social Network Ad Spending.”
This report also highlights the diverging spending rates between Facebook and MySpace users in the US. Facebook will gain over $100 million in spending just for the US, while non-US spending will grow too but at a smaller rate. At least, in absolute figures. If we look at the percentages, we see another picture.
Williamson also notes that social media spending in general has shifted less in recent years. Whether it will grow again with some new technology is uncertain, but the spending increases from 2008 to 2009 and 2009 to 2010 (projected) will be both below 10 percent, while 2007 to 2008 saw an over 30 percent increase in social media spending.
Lastly, with marketing budgets seemingly lowering as part of the 2009 economic downturn, it’s expected that social media (marketing) will be more prominent in comparison to other marketing spending.
Join me in the Social Marketing Forum