U.S. Social Media Ad Spending To Surpass $3 Billion This Year

Social media was all the rage in advertising and marketing world last year as businesses worldwide pumped in billions of dollars to make the most of this opportunity. Facebook is the dominant player in social media marketing and accounts for more than half the investment made by businesses worldwide.

2010 Social Media Marketing Stats

As per the recent research data published by HubSpot, businesses in United States spent over $1.7 billion on their social media marketing efforts. Facebook ruled the roost with a giant share of 53% while Twitter accounted for merely 3% of the overall investments. Myspace was the surprise package last year as it managed to draw nearly 17% of all social media marketing investments.

What’s in store for 2011?

eMarketer, a U.S-based leading marketing research firm believes that American advertisers will spend a whopping $3.08 billion in advertising on social networking sites this year. Businesses will further step up the ante in year 2012 pushing the overall social media spending to $4 billion.

The worldwide projections for ad spending on social networks are equally impressive and are set to rise from US$4.3-billion in 2010 to US$5.97-billion in 2011, with Facebook leading the pack.

As a testimony to social media’s explosive growth, eMarketer was forced to revise and upgrade its last estimate of US social network ad spending, made in August 2010.  The research firm says that Facebook ad spending has surpassed all expectations and is expected to rule the roost in social media marketing world for the next couple of years. IMO, while these numbers are impressive, it’s vital that Facebook continues to innovate and adopt a more “business-friendly” approach.

Twitter has been a late starter in the business world but with the recently launched business center, I’d expect it to pick up considerable pace this year. While it hasn’t managed to rake in the same amount of money as Facebook, Twitter is still by far the most widely used corporate social media tool.

Facebook revenues

It is believed that Facebook earned $1.86-billion in advertising revenues last year. eMarketer believes that the leading social network would witness a stunning 118% YOY growth in 2011. Once dubbed to be a joke in the financial world, Facebook Credits will soon contribute nearly one-third of the site’s total revenue.

And people still doubt that Facebook is worth $50 billion?

Your Business

While all these stats and numbers are impressive, what matters at the end of the day is how they help your business. If you haven’t explored social media marketing for your business, you are missing the opportunity of a lifetime. Now is a good time as ever to build your social media strategy and make the most of Facebook’s fantastic marketing and advertising capabilities.

Have you chalked out the social media strategy for your business this year? What is your opinion on social media’s future in the business world? Please share your opinion by leaving a comment below this post.

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