Social is the New Space for Display Ads

It should come as no surprise that marketers are boosting their display ad spending this year. But advertisers are making a big change when it comes to where they are spending their display budgets. More of these businesses are moving a large part of display advertising to social media sites.

According to new research from Advertiser Perceptions, marketers and their agencies will be increasing their display ad spending on the following types of platforms:

  • Social media 59%
  • Ad networks/​exchanges 31%
  • Publishers 29%
  • Demand-​side platforms 24%
  • Portals 21%
  • Agency trading desks 15%

Additionally, the only platform that won’t see a decline in display ad spending is social networking, primarily Facebook. Analysts found the possible drop in demand-​site platform advertising a bit puzzling. DSP is all about allowing marketers to programmatically purchase ads and many believe this method is the future for online ad buying. However, marketer concern about whether their ads will be appearing next to brand-​safe content may be dimming enthusiasm for the DSP format. An additional problem with DSP is the complexity involved in making the buys.

The breakout of display ad spending, which is expected to reach $15.4 billion across formats this year, may look like this:

  • Publishers/​content 26%
  • Ad networks/​exchanges 20%
  • Social media 27%
  • Portals 14%
  • DSP 9%
  • Agency trading desks 5%

This allocation represents a big increase for social networks. As a result of these changes in the display ad marketplace, David Hallerman, principal analyst at eMarketer, says, “Social display advertising’s relative underutilization compared to the rest of the web is encouraging marketers to ramp up their spending.” Marketers clearly believe that appearing on social networking sites will improve their visibility with respect to target audiences.

[Source: Marketers Accelerate Social Display Ad spending. Emarketer​.com. 26 Mar. 2012. Web. 2 Apr. 2012] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.