The following quote from an agency executive at the Piper Jaffray Internet Summit reinforces our belief that social media advertising is finally gaining traction and will soon drive meaningful advertising spend. Piper:
“In terms of social media, one agency noted that they are seeing budgets up 30%y/y for this inventory and it is the most requested service from clients alongside mobile.”
To be sure, this is just one agency, but over the next year or two we think many more marketers will start to focus on social media as part of their budget plans.
Facebook seems to be the only game in town right now, but Twitter will likely start to capture some social media spend soon as well.
At the same time, consumers are becoming receptive to advertising on social media, perhaps to some extent from improvements in targeting that send the right message to the right users. This only makes a stronger case for advertising on social media sites.
For example, the following slide from Performics presented at the recent Ad:Tech conference in NYC highlights how social media users are increasingly receptive to brand messaging on social networks and even will spread the word for brands they like.
Specifically, 34% of respondents used a search engine to find a product or brand after seeing an ad for it on a social network. Now, that is powerful.
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