Revenue from advertising on social networks: $ 5.4 billion in 2011, $ 10 billion in 2013

Original author: Leena Rao
  • Transfer


According to analysts at eMarketer, global social media advertising revenue will reach $ 5.54 billion in 2011 - and double by 2013. The calculation was compiled by eMarketer based on a number of popular social networks, including Facebook, Twitter and LinkedIn.
Half of the revenue from social media advertising this year ($ 2.74 billion) comes from the United States. It is not surprising that most of the amount is due to the service Facebook, which, according to experts, will help out more than $ 3.8 billion in 2011 thanks to advertising viewed by a huge audience of 800 million network members.
Profits are growing steadily, and eMarketer’s data suggests that in the next few years there will be major sources of advertising revenue not only in the United States, but also in other countries. By 2013, profits in other countries will amount to 51.9% of the total, which is estimated at $ 10 billion. In the United States in the same year, social networks will receive almost $ 5 billion from advertising.
Revenues from advertising on social networks grew by 50% in 2010 and, according to preliminary estimates, will increase by 55.6% this year. The growth rate, however, will fall to 45% in 2012 and to 25.2% in 2013.

Twitter is known to increase ad revenue constantly. Now, this network is likely to begin to receive even more profit due to the new “self-service” for advertisers. For the first time, eMarketer analysts are forecasting profits for the LinkedIn professional network, which has recently been offering new, social advertising formats that are very similar to Facebook ads.
EMarketer estimates that LinkedIn will account for 3% of global social media advertising revenue this year, at $ 140.8 million. For two years, the site has increased its advertising revenue by more than three times, but analysts predict a gradual decrease in growth rates. Advertising revenue will increase by 79% in 2011, but will decrease to 44% in 2012 (reaching $ 200 million) and to 24.3% in 2013 ($ 250 million).
However, on LinkedIn, two new network members are registered every second, and the total number of registered reaches 120 million people, so this social network is still a popular advertising platform where the advertiser can easily attract consumers.
On the global digital advertising market, 8.8% of US profits and 6.9% of global profits came from social networks. By 2013, social media advertising revenue will account for 11.7% of online advertising revenue in the United States and 9.4% of global revenue.
Of course, there is a factor not mentioned in the eMarketer report - analysts did not take into account the possibility of introducing completely new advertising formats and their potential impact on profit growth in subsequent years. So, for example, a few weeks ago, Gokul Rajaram, Facebook’s production advertising director, admitted to TechCrunch Disrupt that their network was considering introducing the AdSense service for advertisers on Facebook.

Also popular now: