Tag: social media marketing

Social media marketing a focus of new IDC report

| April 13, 2013

social media marketing growthRecent research reveals mobile publishers are overtaking mobile advertising networks.

One of the latest reports published by IDC found that social media marketing giants like Facebook, Twitter and Pandora, are now dominating the mobile ad market industry, which was previously controlled by Apple and Google, as well as other large and small mobile ad networks.

The report results show there has been a big shift in mobile advertising.

According to the study, social media marketing claims 52% of the display advertising space. Mobile publishers are no longer taking a backseat to the usual mobile ad frontrunners. Instead, the IDC report shows that they are consistent in their overtaking of the ad market. This is a significant shift in mobile marketing advertising trends.

Mobile advertising networks are anticipated to continue to lose market share to social media marketing.

The report not only highlights that social media marketing publishers are dominating market share, but that is highly likely they will continue to do so. Karsten Weide, IDC’s Vice President of Media & Entertainment, observes that “Networks, especially independent ones, are entering a difficult phase, in which, with an ever smaller share of revenue, they’ll have to compete with publishers, which will only grow in strength.”

The growth rates of the mobile ad market in the U.S. continue to drop annually. In 2012, the market increased by 88%, which is quite the drop from 2011 when its growth rate had increased by 125%. That being said, despite the decline in market growth, mobile advertising has experienced a major increase in terms of spending. Last year, total spending amounted to $4.5 billion which is significantly larger than the $2.4 billion total in 2011.

In addition, the proption of the market that was represented by mobile from among all online advertising was up from 7% in 2011 to 11% in 2012. As for the future, IDC anticipates a 55% to 65% growth rate for the mobile ad market and for the U.S. to spend about $7 billion in mobile ads.

Based on what was revealed in the report, it appears that with social media marketing gaining a lot of strength, mobile ad networks will need to prepare for stiff competition in the mobile ad market.

Social media marketing spending over mobile set to take off

| April 10, 2013

Social Media Marketing spendingThe size of budgets designated to reach smartphone and tablet users is expected to climb.

According to a recent survey, the percentage of overall advertising budgets that is expected to be designated for social media marketing, specifically with smartphone using consumers in mind, is expected to explode.

This was reported in the latest CMO Survey, which looked into the types of spending within the budgets.

The survey involved the participation of chief marketing officers of various firms, who reported that they are currently spending an average of 8.4 percent of their overall budgets toward social media marketing. However, within the next year, that number is expected to climb to 11.5 percent of the budgets.

In 5 years, social media marketing will make up 21.6 percent of the budgets, said the survey.

This shift in the way that the funds are being spent and in the importance of social media marketing is expected to become a primary topic in advertising and technology circles. According to the CMO Survey director, Christine Moorman, “Companies are searching for novel ways to interact with their customers that will drive the growth of their companies. Unfortunately, marketers are behind the curve with their current levels of social media expenditure, given the amount of time customers spend engaged with one another and with companies online.”

The research, said Moorman, involved the participation of 468 American marketing execs who identified social media marketing as one of the most important areas for increased spending. These results, she said, show that the importance of this channel is now being heavily recognized. She also pointed out that some of the largest spending increases in this area are expected to take place in some of the business-to-consumer sector giants, such as Coca-Cola and Proctor & Gamble.

The survey showed that among companies of this nature, social media marketing spending will rise from an average 9.6 percent of the budget at the moment, to 24.6 percent of the budget in five years from now.

In Moorman’s news release, she stated that companies are still trying to figure out how to be able to measure the efficacy of their social media marketing campaigns.