Some people still say “social media is a fad”. In fact I have heard several individuals say they will not advertise or spend time on social media marketing because they do not think that people use it. They think it’s for teenagers to chat with each other after school. But new reports are showing this “fad” is now being seen by business and marketers as a way to influence brands and build their relationships with customers.
According to a new report from The Nielsen Company, in August 2009, 17 percent of all time spent on the Internet was at social networking sites, up from 6 percent in August 2008. And the marketers are well aware of this. Estimated online advertising spend on the top social network and blogging sites increased 119 percent, from approximately $49 million in August 2008 to approximately $108 million in August 2009. Most industries are seeing a surge in advertising revenue this year.
Year-over-Year Percent Change in Online Advertising Spend by Industry (U.S., August 2009)
|
Estimated Spend on Top Social Network Sites* |
Year-over-Year Percent Growth
|
||||
|
Industry |
Aug-08 |
Aug-09 |
On Social Network Sites* |
On All Sites |
|
|
Entertainment |
$1,097,700 |
$10,012,800 |
812% |
40% |
|
|
Travel |
$473,700 |
$2,198,200 |
364% |
-11% |
|
|
Business to Business |
$683,400 |
$1,941,700 |
184% |
-8% |
|
|
Automotive |
$1,110,200 |
$3,085,800 |
178% |
-26% |
|
|
Health |
$1,131,500 |
$2,754,900 |
143% |
8% |
|
|
Web Media |
$11,231,800 |
$26,855,700 |
139% |
30% |
|
|
Software |
$526,400 |
$1,202,500 |
128% |
-29% |
|
|
Financial Services |
$3,233,900 |
$6,415,900 |
98% |
-10% |
|
|
Public Services |
$6,836,500 |
$13,203,100 |
93% |
13% |
|
|
Telecommunications |
$12,449,500 |
$23,550,300 |
89% |
-1% |
|
|
Consumer Goods |
$1,913,400 |
$3,349,200 |
75% |
8% |
|
|
Hardware & Electronics |
$654,000 |
$1,022,900 |
56% |
-47% |
|
|
Retail Goods & Services |
$8,101,400 |
$12,556,800 |
55% |
-12% |
|
Source: Nielsen AdRelevance
*Estimated spend on social networking sites is based off of data for the top ad-supported member community sites ranked by unique visitors in August 2009
To read the entire News Release from the Nielsen Company, click here.
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