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How Social Networking Will Effect Sales This Year

By: Brian Solis

In July 2009, experts predicted that advertising on Facebook would surpass MySpace by 2011. What represents a tectonic shift in social media spend is now anticipated in twenty-ten (2010).

A new report published by eMarketer, "Social Network Ad Spending: 2010 Outlook" documents the major shifts in social network advertising spending that emerged in 2009 and will ultimately unfold in 2010.

eMarketer observes that Facebook is becoming the premier destination for marketers in the U.S. as well as many worldwide markets. At 350 million users, its momentum appears unstoppable.

In 2009, marketers funneled an estimated $2.2 billion to advertise on social networks worldwide, with $1.2 billion spent in the U.S. In 2010, Facebook will account for nearly 25% of all social network ad spending worldwide, up 20% over 2009. 2010 also represents the year that Facebook officially surpasses MySpace in ad revenues. eMarketer predicts that Facebook will earn $605 million versus $385 on MySpace.

The shift represents a significant loss to MySpace, dropping 23% in U.S. ad revenue in just one year while Facebook jumps 34% in the U.S. and 65% worldwide.

"As more marketers incorporate social networks in their business, they will no longer look at them as siloed destinations. Instead, they will look to increase the impact of their social network presence by linking it to other marketing initiatives, both online and offline," said Debra Aho Williamson, eMarketer senior analyst and author of the new report.

eMarketer predicts that U.S. online social network ad spending will increase 3.9% over 2009 and will grow 7.1% in 2010 and 7.7% in 2011. As social media becomes ubiquitous in marketing over the next year, I anticipate 2011 numbers to increase significantly.

These increases come at a time when total U.S. online ad spending is falling and thus represent a greater share of online spend.

Continue reading this article.

About the Author:
Brian Solis is principal at FutureWorks PR, an award-winning PR and Social Media agency founded in 1999. FW PR bridges the communications gap between companies and their customers, and between products and their specific benefits for their target markets. Solis blogs at PR2.0,, and regularly contributes to many industry trades. He is also frequently quoted in articles relating to technology trends and Marketing/PR strategies.
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