The Social Media Advertising Ecosystem Explained
The Web produced the initial fissure, but
How can you solve this problem?
Social networks like
, we analyze the state of
Here's an overview of some major players in the
- The lure of social media advertising is massive: As brands look across a fractured media landscape, social networks offer them an interesting proposition. Social networks have scale - enormous user bases and deep databases. They have high engagement - Americans were spending an average of 12 hours per month on social networks as of July 2012, with 18-24 year olds averaging 20 hours . And potentially, social media gives brands offer a uniquely captive audience for their content.
- Guaranteed placement is getting advertisers to pay up: Brands are paying to get their content or copy in front of a quantifiable audience , an increasingly rare feat in an era of scattered consumer attention. This desire for guaranteed attention also helps to explain social media's move away from traditional display ads — like Facebook's right-rail ads — and toward so-called native ads that surface in a user's stream, either as a tweet or a Facebook post. A consensus seems to be forming around in-stream advertising as the most promising social advertising format.
- Social media advertising is set to explode: Social media advertising is a young market and so far, it only represents 1% to 10% of ad budgets for a wide majority of advertisers . There's significant opportunity for that share to grow. BIA/Kelsey recently came out with a study that offers one view - forecasting $11 billion of social ad spend in 2017, up from $4.7 billion last year . That estimate is large - but still seems pessimistic, because...
Increased mobile usage will be a huge growth driver:
The BIA/Kelsey prediction calls for mobile to account for only $2.2 billion of that in 2017 - a 20% market share. This could easily be surpassed.
oth Twitter and Facebook have passed the 50% mobile usage mark and,
given the continued growth of mobile devices
, it will only rise. Mobile accounted for 11% of Facebook's ad revenue last year even though it didn't release
mobile adsuntil the tail end of the second quarter. By the fourth quarter, it was up to 23%. And now, Twitter is reporting that its mobile ad revenue now regularly outpaces its desktop ad revenue . Social media advertising is therefore uniquely positioned to grab an increasing share of the fast growing mobile advertising market.
I n full, the report includes:
- The State Of Social Media Advertising And Where It's Headed
- A Guide To The Facebook Advertising Ecosystem
- A Guide To The Twitter Advertising Ecosystem
- A Primer On Tumblr's New Ad Products