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Social Networks to Capture US$70 Million in 2011
 
Companies are integrating social networks into their marketing plans. The online outlet will take 8.7% of global online ad spending this year and analysts expect the figure to reach 10.2% next year.
 
ttv Newsroom
02/04/2011 06:31:00 p.m.
 
Facebook, the largest social network in the world, is driving a trend of companies integrating social networks into marketing plans, and is becoming increasingly present on online advertising budgets. Major marketers are increasing their online ad spending on social media and social networks such as MySpace, Facebook, YouTube, Flickr and Twitter. According to an eMarketer report, global online investment will amount to US$68.7 billion this year and 8.7% of it will land on social networks. Next year they will take 10.2% of an overall US$79 billion in online ad spending.

The eMarketer report also notes that 10.8% of overall US online ad spending will be invested in social media, a number expected to rise to 12.1% in 2012.
 
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The consulting agency forecasts that as long as Facebook continues to increase its global footprint, ad spending on social media in the US will also grow. At the same time, markets outside the US will account for over half of social network ad spending. Social networks in markets such as Russia, China and Japan, where they enjoy strong penetration, will also see growth in usage and ad spending.
 
Technologically more developed markets such as China and Japan, where mobile devices are a predominant way to access social networks, are expected to venture into more sophisticated advertising formats.


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