Social Media Ad Spending On The Rise
Study Indicates 64% Of US Advertisers To Increase Spending
Spending for paid advertising on social media sites is poised to increase this year. A just-released study indicates that 64% of U.S. advertisers plan to boost the amount they spend on paid social media ads in 2013. Only 2% of respondents indicated they will lessen their paid social network advertising budgets, according to the study conducted for digital brand measurement provider Vizu by Digiday, a media company and community for digital media, marketing and advertising professionals.
While a majority of firms plan to pump up their social media ad spending by 10% or less, it's notable that a sizable minority – 26% – expect to make a larger investment. These companies anticipate that they will increase their social network ad budgets by 11% or more. Meanwhile, about 70% of study respondents indicated they will spend between 1% and 10% of their online budget on social ads. Some 13% of respondents said 21% or more of their online budgets will be devoted to paid social ads.
What are marketers and ad agencies hoping to get out of these advertisements? Primarily, the study found, they expect the ads to serve as branding tools that generate awareness and positively influence opinions about brands. While fewer respondents used social advertising purely to drive site visits or other actions, 54% of agencies and 39% of advertisers reported they use the ads to do a mix of branding and direct response.
In total, online research firm e-Marketer estimates that advertisers in America will spend about $4.1 billion on paid social media ads in 2013. That number will rise to $5 billion by next year. A separate study from BIA/Kelsey indicates that spend on paid social media advertising could jump to $9.2 billion by 2016.