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Weekly Mobile Breakdown: Social Ad Spending

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Tina Products/Markets Analyst
May 24, 2012

Enjoying those ads you see on your Facebook and Twitter accounts? As you might have already heard, you’ll need to start getting more used to them. Yesterday, eMarketer & BIA/Kelsey released its estimates for local and national social media ad spending, which is predicted to increase over the next four years. Much of the growth will be in national social media ad spending and display ads, though local and non-display ads will also comprise a significant amount. And with the recent Facebook IPO, I guess this isn’t really a surprise.

But what does this mean for mobile? For starters, mobile will definitely be playing a bigger role in the social media ad spending increase. When you’re out and about and happen to be checking your Facebook account on your phone, you can expect to see more location-relevant ads from your favorite local businesses–which is a good thing!

 

      

Based on the charts above, below are some key highlights and takeaways I think are important for mobile marketers & advertisers to consider.

KEY HIGHLIGHTS:

  • Social network ad spend predicted to reach $4.8 billion in the US this year and $7 billion by 2014
  • Local ad spending will grow from about a quarter of all spending this year, to nearly 1/3rd by 2016, due largely to geolocation capabilities
  • The lion’s share of social media ad spending will go to display, though non-display format will see spending climb more quickly from a smaller base
  • Overall growth is attributed to better performance, coupled with richer formats and creative elements, like video

 

KEY TAKEAWAYS:

Expect to see the following in the next few years…

  • Social media advertising comprising larger portions of marketing budgets
  • More promotions and campaigns available only through social media
  • Friends claiming deals comprising more of your Facebook and Twitter feeds
  • Larger variety of companies advertising via social media as well as larger variety of social media ad types
  • More social media ads from your local businesses

 

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