According to a report
by emarketer, social media advertising revenues in US are expected to reach
close to US$ 4.5 billion in 2013 and also predict the revenues to grow by more
than billion dollars and reach close to US$ 6 billion in 2014 and reach US$ 7
billion in 2015. According to BIA/Kelsey’s
U.S. Social Local Media Forecast, social display ad revenues in the U.S. will
grow from $4.3 billion in 2013 to $6.8 billion in 2017, a 12.6 percent
compounded annual growth rate (CAGR). During the same period, U.S. native
social advertising, spurred primarily by Facebook’s Sponsored Stories and
Twitter’s Promoted Tweets, will more than double, from $2.4 billion to nearly
$5 billion, a 20.3 percent CAGR. U.S. social mobile ad revenues are expected to
grow from $1.6 billion in 2013 (up 250 percent from 2012) to $3.5 billion by
2017, a 21.3 percent CAGR. BIA/Kelsey projects total U.S. social media
advertising revenues will grow from $6.7 billion in 2013 to $11.9 billion in
2017, representing a CAGR of 15.5 percent. Locally targeted social advertising
will grow at a 22.6 percent CAGR, from $1.7 billion in 2013 to $3.9 billion in
2017.
Facebook, Twitter, You Tube, LinkedIn, Google+, etc. are the major social networking sites
that are expected to drive revenue growth and they are investing heavily on the
advertising platforms and looking to monetize. But the crucial fact is that all
the major social networking sites are struggling with mobile advertising
platforms as majority of the social networking sites users are using their
mobile devices to access social networking sites rather than personal computing
devices like laptops and desktops. Facebook is still experimenting and
constantly changing their website layouts and also experimenting with different
types of brand pages format and also the ad display formats. Almost all the
social networking sites are seeing good growth in revenues but the amount spent
on social media advertising is small compared to the traditional television,
print and even overall digital advertising like search and Google ads. Reasons
for this is that marketers are not able to exactly quantify the return on
investment of the social media advertising, effect on customers in terms of
retention and satisfaction levels.
According to Dachis
group social media predictions for 2014, less than 10% of
advertising budgets are allocated to social channels, Social media budgets will
only be 12% of all marketing spend in 2014, and despite the critical importance
of content to seed social marketing and community engagement efforts, only 9%
of marketers have a full time blogger. Yet over 70% of marketers plan on
increasing their investment in social media in 2014. Image based social
networking sites like Instagram, Pinterest, Video based sites like We Chat and
chat based social networking sites like WhatsApp, etc. also causing confusion
in the marketers as there is an argument that fatigue is setting in Facebook
site users and they are slowly moving away to other social networking sites.
Even the reemergence of blogging is also attracting the marketers to look back
at it. Overall marketers are looking for quality engagement rather than
quantity engagement on social media sites and are also recruiting specialists
who will help them effectively manage the social media presence. Social
networking sites on their behalf have to make sure their advertising platforms
deliver the best value.
The advancement of information technology has opened up a broad world of contact, made the world looks smaller and inspired majority of the businesses nor individuals to utilize social networking websites such as Facebook, Twitter, Linkedin, Youtube, Friendster and Myspace as an useful communication tool to develop effective marketing strategies, save cost and budget, gain global awareness, encourage brand-building, share information and build public relationship, irrespective of geographic barrier and cultural differences. However, its potential and capability contain both strengths and weaknesses which will greatly affect the user. outsource lead generation
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