Ad spend on social networking is projected to be about $900 million for 2007, and is projected to rise to $2.5 billion in 2011. That number was $350 million for 2006. $2.5 billion seems like a lot, but to put it in perspective, local search advertising is supposed to reach $11 billion for the same period.
Forecasting is hard. No doubt eMarker has some stat geek running linear regression on historical data to arrive at the new figure, but I think they're way under the mark. I have no spreadsheet data to back me, but gut instinct tells me they way underestimate the market. Social marketing is still maturing, so historical data isn't much of a guideline. I think when it matures the online dollars from many deep pocketed agencies will gravitate to what I feel are superior branding opportunities relative to paid search. So who is right? Check back with me in 2011...
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SEO Step Six of Ten: Social MediaSocial Networking Ad Prognosis CutSocial Media Marketing StrategiesA Strategic Approach to Social Media MarketingSocial Networking: Examining User BehaviorAdvertisers Don't See Social Networking as a FadSocial Commerce and FatigueMarketing Through forums and Social NetworksIBM's Enterprise Social Networking Offeringsad:tech Chicago - Advertising with Social Media
