Borrell Sees Explosive Ad Growth On Social Media
January 5, 2012 at 6:05 AM (PT)
BORRELL ASSOCIATES has released a report this week that looks into the use of social media by small and medium-sized businesses. The surver, entitled "Main Street Goes Social," predicts local merchant spending on social media will explode over the next four years.
BORRELL sees total local online social spending growing from an estimated $1.1 billion in 2011 to $7.8 billion in 2016, with the local’s share of the total spend doubling from 12% to 24% over the same period.
Wrote BORRELL, "There’s no doubt that small and medium-size businesses (SMBs) are buzzing over social media. To them it’s the Holy Grail -- an opportunity to dis-intermediate those expensive local media channels and deliver their offers directly to potential customers. And not spend a dime!
"Or at least that’s what they think. In our survey of more than 4,000 SMBs, local businesses said they expected to spend 13.7% of their online advertising budgets on social media in the coming year. That means their expenditure on social media -- which settled in at $1.1 billion in 2011, or 6.6% of all local online advertising -- is likely to double this year. Our forecast for 2012 has SMBs spending $2.0 billion, then doubling again in 2013, to $3.9 billion.
"Nearly two-thirds of SMBs were reporting last year that they had a social media presence -- most notably on FACEBOOK. According to our survey, that will jump to almost 80% before the end of 2012. In fact, Main Street businesses listed social media as the third-highest category in online spending in the coming year -- ahead of banner ads, streaming video ads and even mobile advertising."
Lear more here.