Advertisers’ appetites for paid advertising on social media sites shows no sign of abating in 2013. According to a study conducted for digital brand measurement provider Vizu by Digiday, 64% of US advertisers planned to increase their paid social media ad budgets this year, with just 2% saying they intended to spend less money in 2013 than they did in 2012 on paid social ads.
Most of those increasing their spending on ads on social sites planned to do so by 10% or less. But a significant number were making even larger investments: 26% of respondents reported planning to increase their social media ad spending by 11% or more.
Seven in 10 respondents said they would spend between 1% and 10% of their online budget on social ads, suggesting that for most it is a present, but not a dominant part of the marketing mix. For 13% of respondents, however, it plays a larger role: This group spends 21% or more of their online budgets on paid social media advertising.
Overall, eMarketer estimates that US advertisers will spend $4.1 billion on paid social media ads this year, rising to $5 billion in 2014.
In terms of what marketers and agencies are hoping to get out of these social ads, the majority viewed them as primarily a branding tool to raise awareness and influence opinions of the brand.
Fewer advertisers and agencies used social ads as a pure direct-response tool to drive site visits or other actions, but 54% of agencies and 39% of advertisers reported using social ads to do some mix of branding and direct response.
For more information CLICK HERE.