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2010: Social Network Advertising and Marketing Outlook

In July 2009, experts predicted that advertising on Facebook would surpass MySpace by 2011. What represents a tectonic shift in social media spend is now anticipated in twenty-ten (2010).

A new report published by eMarketer, “Social Network Ad Spending: 2010 Outlook” documents the major shifts in social network advertising spending that emerged in 2009 and will ultimately unfold in 2010.

eMarketer observes that Facebook is becoming the premier destination for marketers in the U.S. as well as many worldwide markets. At 350 million users, its momentum appears unstoppable.

In 2009, marketers funneled an estimated $2.2 billion to advertise on social networks worldwide, with $1.2 billion spent in the U.S. In 2010, Facebook will account for nearly 25% of all social network ad spending worldwide, up 20% over 2009. 2010 also represents the year that Facebook officially surpasses MySpace in ad revenues. eMarketer predicts that Facebook will earn $605 million versus $385 on MySpace.

The shift represents a significant loss to MySpace, dropping 23% in U.S. ad revenue in just one year while Facebook jumps 34% in the U.S. and 65% worldwide.

“As more marketers incorporate social networks in their business, they will no longer look at them as siloed destinations. Instead, they will look to increase the impact of their social network presence by linking it to other marketing initiatives, both online and offline,” said Debra Aho Williamson, eMarketer senior analyst and author of the new report.

eMarketer predicts that U.S. online social network ad spending will increase 3.9% over 2009 and will grow 7.1% in 2010 and 7.7% in 2011. As social media becomes ubiquitous in marketing over the next year, I anticipate 2011 numbers to increase significantly.

These increases come at a time when total U.S. online ad spending is falling and thus represent a greater share of online spend.

Advertising, however, represents only one facet of an overall integrated marketing program. Engagement is something funded by “sweat equity,” dedication, and a genuine desire to help someone do something they couldn’t do before they met or heard from you.

According to Williamson, “When companies budget for social media marketing in 2010 and beyond, a substantial portion of their expenses will go toward creating and maintaining a fan page, managing promotions or public relations outreach within a social network, and measuring the impact of a social network presence on brand health and sales.”

As eMarketer documents, 2010 will be the year that social network advertising intersects with other forms of social marketing, including earned media. Earned media is just that, it’s earned. It is the result of strategic community cultivation and the investment of time, resources, and expertise in a network of passionate brand beacons and empowered advocates.  While earned media is usually advertising-free, otherwise it’s then referred to as sponsored conversations (paid, not earned), budgets still must cover time, energy, and the people who lead community-focused programs across multiple social networks.

Sponsored conversations are also expected to rise in 2010. Josh Bernoff at Forrester Research wrote a thoughtful post in March 2009 that offered guidance on how businesses can introduce paid media into the overall social mix.

Together, earned and paid media are far more effective when the programs are humanized. The difference between social network advertising and marketing and traditional online campaigns are the ecosystems where engagement is fostered. Social networks are “social” and therefore respect and empathy are the minimum antes necessary to potentially earn attention, a precious commodity in Social Media. Without a genuine intent to offer value, trust is elusive.  It’s the difference between shouting “at” people and speaking “with” someone.

Before you’re a marketer or advertiser, you’re a consumer. Bring that perspective to the marketing table…

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77 COMMENTS ON THIS POST To “2010: Social Network Advertising and Marketing Outlook”

  1. merlynsanchez says:

    Facebook and twitter, used correctly, have huge potential for marketing. Myspace is still a contender, but nowhere near what it used to be.

  2. Patrick says:

    In my experience, many companies are interested in paying for advertising on the web, because that's similar to paying for advertising in traditional media companies. They're a lot more unsure of trying to engage clients via social media, because it takes a far different kind of commitment. And they haven't mastered the art of content creation. Hence thousands of fan pages with no true interaction on behalf of the company. Either it will become routine for companies large and small to hire content creators (often former journalists) to fill their social media networks with content, and respond to comments scattered online. Or fan pages are going to continue to spring up, with little to no actual interaction.

  3. mwlm07 says:

    Brian, just started following your blog a few weeks ago and its one of the first things I check in my reader now. Your insight is phenomenal, particularly the sociology stuff. It seems like a lot of folks extol social media in its business applications but leave out the really interesting intellectual aspects. You accomplish both. Look forward to 2010 and beyond keep it up bro!

  4. Sean Supplee says:

    I really think this year facebook is going to blow myspace out of the water. I have seen over the last year a huge push towards facebook then myspace. To me myspace seems a little old and could really use some easier navigation and better features. As more applications start supporting facebook over myspace this will also help in the push. Be sure to create yourself a fan page for you or your business.

  5. Sarah Jo says:

    Brian, I have recently started following your blogs about social media and marketing. It's been interesting reading about the many facets of the social media realm. On top of that, your blogs have also been insightful and fascinating in some respects.

    Facebook has become so popular just within the past couple of years, and I think it is quickly becoming the main competitor among all the social media networks that are available.

  6. James says:

    smallbiz.vistaprint.com/small-business/dont-strikeout-with-your-ads/

  7. Bet Odds says:

    All the girls seem to like Facebook and is very popular with kids too. I expect to Myspace to pretty much vanish over the next couple of years.

  8. helperr says:

    Advertising, however, represents only one facet of an overall integrated cpa programs
    . Without a genuine intent to offer value, trust is elusive.

  9. ThomWestley says:

    Social media advertising and marketing is a great way to drive organic traffic to your site. This kind of traffic is the best because it's usually free unlike the one from search engines ads campaigns. A good way to get some good targeted traffic is through affiliate network programs. They will only place your ads on relevant sites and will generate traffic that will help your business the most.

  10. alina8528 says:

    This new report is such amazing, today social networking is being too popular. There are lots of people who are suing this great facilities. There are many companies who are interested in paying for advertising on the web because by them they get lots of benefits. Social networking sites have huge potential for marketing. chiropractic advertising

  11. SamanthaCherley says:

    More and more people are joining the online virtual world and that means that any business can get a chunk of revenue from people that are interested in purchasing a certain product. You just have to know how to work with social media and a little bit or more of viral marketing.
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  12. It seems like a lot of folks extol social media in its business applications but leave out the really interesting intellectual aspects. You accomplish both.

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