Advertisers Pouring Total of $1.7 B into Social Networking sites by the end of the year

According to the latest report by eMarketer,  advertisers will spend nearly $1.7 billion in the U.S. on social networking sites in 2010. Worldwide, spending will hit $3.3 billion according to the report.

The numbers represent a significant bump up from estimates published by the research firm at the end of last year, when it projected $1.3 billion would be spent on the space in the U.S.

That’s a whole lot of money to be spending. While social media marketing is certainly an essential part of building a brand and connecting with your customers, I think the roots of every internet marketing campaign still remain in search engine. So, not sure how accurate the report is. I guess we find on in a few month.

The report further shows about half of that money (in the U.S.) going to Facebook, with MySpace continuing to see a smaller share of the pie. Separately, the firm estimated that Facebook’s 2010 revenue would hit $1.2 billion in a report published last week.

Can I have a fraction of that into Awesome DC? Please 😦

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About Elias Shams
I have been a serial entrepreneur in telecom and social media space for past 12 years or so. I hold a M.S. degree in Telecommunication Engineering from the George Washington University and a B.S. degree in Electrical Engineering from the University of Maryland. I’ve lived and worked in many countries and cities including London England, Tehran Iran, Bonn Germany, Paris France, Alicante Spain, Delhi India, and my favorite of all Washington, DC of great US of A. Two of the greatest Washington, DC based companies I worked for and very proud of are Yurie Systems which was sold to Lucent in 1998 for $1.23 B and telezoo.com that I founded in 1999. I am currently the founder and awesomizer @ awesomize.me

4 Responses to Advertisers Pouring Total of $1.7 B into Social Networking sites by the end of the year

  1. Viewcaster says:

    Well I’m sure the relative growth of social media compared with the web as a whole pretty much mirrors the growth of ad dollars in these areas. Considering that the second most visited site in the world (along with several others in the top 50 or so) are social networking sites, this is certainly not surprising.

  2. If it’s B2C that seems correct. If it’s B2B I don’t see it. Most of them are still living in print land.

  3. Steve Pinto says:

    I agree with Charles. If it’s B2C I’d like some data on how many people are searching Google/Bing/Yahoo for their favorite brands and how many have started searching FB/Twitter. I would guess that many are searching for the voice of the people who work at the brand rather than the corporate messaging they get from a website.

  4. Jeff Sable says:

    I see a lot of parallels between social media (Facebook) and Google years ago. Getting traffic and fans to your Facebook page will be similar to SEO and paid advertising will be similar to PPC (or display). I’m not surprised that advertiser spend is increasing. I know that more advertisers need to recognize the opportunities (and the requirement) to converse and transact with their customers where the customer wants to be (Facebook), not just at the advertiser’s site.

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