Social Ad Spend & Display/Non-Display Ad Units

http://www.marketingprofs.com/charts/2011/4977/social-media-ad-spend-to-reach-83-billion-by-2015

Some compelling visuals in this article. The first graph — a five-year forecast for total social ad spend — helps illustrate just how important this category of online advertising is projected to become. The main takeaway: in just five years, social media ad revenues are expected to hit $8.3 billion, up from just $2.1 billion in 2010.

However, I was struck by the projected disparity between display and non-display advertising. “Display ads” are what most of us think of when we think of advertising on the Internet — banners, rich media, 300x200s, etc. “Non-display ads,” on the other hand, are creative ad units such as the “promoted tweets” you see (and probably ignore) on your Twitter feed, as well as Facebook’s new “Sponsored Stories” initiative. Granted, according to the graph, non-display ad revenue is expected to grow at a faster rate, partly because the entire category is starting at $0. But the fact that revenue from non-display ads is still expected to comprise just tiny percentage of the overall social ad spend was very surprising to me, because I feel like I am always reading about the tremendous potential of non-display advertising. For example, Facebook’s Sponsored Stories have been shown to be 46% more effective than standard Facebook display ads, and Twitter is starting to see some great return on those Promoted Tweets. To me, non-display ads have much more engagement potential than this graph seems to predict.

One final note on this article: the second graph, which shows a “steady shift toward digital media,” is also very telling. While the dollars keep going up on the digital media side, they are not necessarily dropping off on the traditional media side. This tells me that while digital media advertising is becoming increasingly important, it will not necessarily supplant traditional media as a medium to throw ad dollars at.

Advertisements

2 thoughts on “Social Ad Spend & Display/Non-Display Ad Units

  1. Last year, $10B was spent on display. That means social display makes up about 20%. That seems high to me. I’m not questioning the source, but I’m wondering how effective social display is for other marketers. I work in the insurance sector and it hasn’t proven to be effective… yet. I think it just be because financial services in general is slow to adopt social media.

    Thanks for sharing.

  2. Recently, I did a paper on the Wall Street Journal and found that their advertising and circulation has increased dramatically through the years due to digital subscriptions. Traditional media will never cease to exist. It is imperative that these companies are not set in their ways and that they adapt to change. They must take it as an opportunity not a threat. The NY Times, WSJ, and Financial times have made an extreme effort to ensure that all of their material is online and available fast.

    Social media will never supersede news papers, but they can act as an important driver. No one can deny that social media can/will change the culture or opinions of society. Traditional media needs to embrace social media and become part of the change.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s