Ad spending on social networks continues to increase, as does Facebook’s share of that pie, meaning that $7 out of every $10 invested in social network advertising will go to Facebook by the end of 2012.
So eMarketer sees ad spending on social networks topping $8 billion in 2012 and nearing $10 billion in 2013 globally, pegging those figures at $3.9 billion and $4.81 billion, respectively, in the U.S.
Facebook is the big winner in eMarketer’s eyes, as the research firm projected that it will total $5.78 billion in advertising revenue in 2012, accounting for 72 percent of social network ad revenue and 6.1 percent of global online ad spending (7.9 percent in the United States).
Debra Aho Williamson, eMarketer principal analyst and author of new report, “Worldwide Social Network Ad Revenues: A $10 Billion Market by 2013,” added:
With $7 of every $10 in social network advertising flowing to the company, Facebook is taking not only a greater share than ever of social network ad spending, but also an increasing proportion of total online ad spending. Although its ad offerings and metrics aren’t perfect, marketers still feel they need to be there to reach their target audience.
Readers, do you feel that these latest advertising estimates seem inflated or realistic?