Everyone knows that social media is of growing interest to marketers who want to reach U.S. consumers. But it turns out that marketers are also increasing their social media ad budgets to reach consumers around the world. This year’s social media growth rate will approach 50% and then begin to slow down in the next few years.
On a global basis, marketers expect to shell out $7.72 billion for social network ads. This includes paid ads on the sites as well as in social games and apps. The growth rate this year will be 48.5%. During the next 2 years, the growth rate will slow slightly, but by 2014, marketers will likely invest $11.87 billion on social media marketing.
Not surprisingly, spending in the U.S. on this format will account for nearly half of this spending. eMarketer analysts see social media spending in the U.S. reaching the following levels:
- $3.63 billion 2012
- $4.73 billion 2013
- $5.59 billion 2014
While Facebook is expected to maintain its dominance in the social media ad market, other sites will slowly erode the company’s market share. By 2014, Facebook may hold just 67% of social media advertising. This year, Facebook may command as much as 71% of social media ad spending. Look for Twitter and LinkedIn to remain active in social media marketing. In just 2 more years, Twitter may have 8% of the market, up from 6% this year. And LinkedIn should stay steady at 4%.[Source: Total Worldwide Social Network Ad Revenues Continue Strong Growth. Emarketer.com. 24 Feb. 2012. Web. 11 Mar. 2012]