Facebook Ads Expected To Grow In 2012


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You probably heard of Facebook's IPO filing last week. Lots of interesting factoids about the social network company were made public, most of which was built around their financial information. One salient fact: companies seemed not to care how much they had to spend to advertise on Facebook as long as they got to advertise on Facebook.

Business Insider pointed out the ad craze: Facebook increased the price of ads 18% but the ads sold increased 42%. That's a lot of companies who didn't care too much about forking over the extra money to get their name on Facebook.

Today eMarketer summed up the usage of social media marketing among the five hundred fastest-growing private companies and, perhaps not too surprisingly, their usage of Facebook is rising. In Q4 2011, Facebook was the go-to for ad agencies as 89% said they planned to buy ads on Facebook for their clients.

Facebook's not the only social media site that's gathering advertising steam as LinkedIn and Twitter were both used quite a bit by companies.

As you can see in the table above, Facebook's growth as a tool for advertising slowed in 2011, but it's debatable whether that's worthy of any concern as other social media sites like Twitter and Myspace also saw a decline in growth (Myspace actually saw a decrease, which isn't surprising because who really uses that site other than local bands still praying to get signed to a major label).

What's more interesting than companies throwing in with social media sites is the success levels that companies have had with advertising on Facebook and Twitter. As it would turn out, message/bulletin boards and blogging are still the most successful ways for companies to advertise on social media. While 82% of companies reported success with advertising on Facebook, which is by no means a paltry achievement, it still lags behind other social media (LinkedIn, YouTube, and Twitter were all used to greater success). Additionally, 96% companies had the most success with message/bulletin boards. That could change in 2012, however, as the amount of companies that used social media for advertising rose 50% in 2011.

Another factor that will certainly come into play in 2012 is the undeniable rise in popularity of Google+, which is nowhere to be found in this data. Whether that will affect how companies advertise on Facebook or other social media is anybody's guess, but one things certain for now: companies want their name on your Facebook experience.