Marketers will Increase Social Networking Spending

    May 18, 2007

Direct Marketing News is reporting on an eMarketer report entitled “Social Network Marketing: Where to Next?"  With a second mortgage you may be able to read the report yourself, until then the eMarketer summary will have to suffice. 

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…