We just did an assessment of advertising placed on social networking sites and were surprised to find that nearly 20% of all ad spending is by local businesses. Our assumption going into this research was that commercials on social networks were almost purely national. We’re estimating that local advertisers will account for about $641 million of nearly $3.3 billion this year trying to reach consumers via these sites.
In the scheme of things, it’s still a drop in the bucket. The total is less than 3% of all locally spent online advertising. If we estimated it for individual local markets (we usually don’t do that until an advertising segment reaches $1 billion), it would equate to a few hundred thousand dollars or less in most markets.
Before you rush to create a networking site for Oklahoma City pet lovers or Duluth skydivers, consider this: 57% of all that local social-networking advertising is going to two sites, Facebook and MySpace. They are the only two sites generating more than $100 million from local advertising placement. We’re seeing quite a few local ads placed either through Google or Yahoo’s contextual placement program – probably through an intermediary and not by the advertiser directly.
We’ll be studying the full list of social networking sites and their local ad dollars over the next several days and offering more insights. The relatively small amount may not seem like much, but the swift growth of these networks appears to be causing a corresponding upswing in local ad placement. Keep an eye on Facebook. It is the biggest share-getter. In fact, 74% of its ad revenues are from local businesses.
Download a detail of Social Network ad spending.
Tags: Facebook, local advertising, local online advertising, Media, MySpace, social networks
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] Local Ads Moving to Social Networks & Report: 74% of Facebook Ad Revenues Comes from Local Advertisers // Photo Credits: © [...]
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
How do You explain Twitter number? You know, they have no advertising at all in their web site. How do You calculate 288 mil $ revenue for 2009? Thanks
[...] investissements média, local, myspace, publicité en ligne titaninteractif 15:12 Selon une étude récente de Borrell Associates, 20% des revenus publicitaires sur les réseaux sociaux proviendraient [...]
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] 21, 2009 According to a report from Borrel Associates, 20% of the advertising dollars spent on social networks such as Facebook [...]
[...] Gordon Borrell, “Local Ads Moving to Social Networks,” Borrell Associates, July 12, 2009 Share and [...]
Lange staart biedt soelaas om geldbeugel van menig ’social media’ -ondernemer te spekken.. interessant inzicht.. http://tinyurl.com/l688as
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
So, Facebook is getting 74% of its advertising from local advertisers. I wonder if this is because they have a self-service system like Google Adwords. The local advertisers aren’t forced to call a sales rep who would rather be talking to a national account.
[...] Associates says that of the $310 million it estimates in total advertising revenue for Facebook in 2009, nearly [...]
[...] and Associates recently did a study on local advertising on social networks. “We just did an assessment of advertising placed on social networking sites and were surprised [...]
[...] that sheds some light on how advertisers are utilizing social networks. The research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] segnala che la Borrell Associates ha recentemente rilasciato una ricerca dedicata all’analisi delle inserzioni pubblicitarie all’interno dei social network per [...]
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] Advertising: It’s All Local Pesquisa pela Borrell Associates mostra que a porcentagem de anunciantes locais no Facebook é maior do que o normal. Isso se [...]
[...] principios de esta semana, Borrell Associates public0 datos que sugieren que Facebook genera el 74 por ciento de sus ingresos por publicidad a través de las [...]
[...] much do social networks make? Here is a projection from Borrell [...]
[...] that sheds some light on how advertisers are utilizing social networks. The research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] [...]
[...] a drop in the bucket. The total is less than 3% of all locally spent online advertising," Borrell says in a blog [...]
[...] well at least its advertising revenue is. According to a recent report by Borrell Associates, 74% of Facebook’s advertising comes from local businesses. That’s a great statistic but one that makes me want to ask so [...]
[...] [...]
[...] by Mashable.com’s Benn Parr. It has some pretty good information and even a report from Borrell Associates regarding social media spending and projections for [...]
[...] sur Inside Facebook que selon Borell Associates, entreprise de recherche sur la publicité, la grande majorité des 500 millions de dollars du revenu total de Facebook prévu pour cette année vi…. Ainsi Borrell Associates affirme que sur les 310 millions de dollars de revenus publicitaires de [...]
[...] research, published by Borrell Associates (embedded below), provides projections for social networking ad spending in 2009. While the $3.2 [...]
[...] sur Inside Facebook que selon Borell Associates, entreprise de recherche sur la publicité, la grande majorité des 500 millions de dollars du revenu total de Facebook prévu pour cette année vi…. Ainsi Borrell Associates affirme que sur les 310 millions de dollars de revenus publicitaires de [...]
[...] a drop in the bucket. The total is less than 3% of all locally spent online advertising," Borrell says in a blog [...]
[...] consumers shift from traditional media consumption to the online world, senior housing providers will find significant opportunities to both measure and improve the [...]
[...] consumers shift from traditional media consumption to the online world, senior housing providers will find significant opportunities to both measure and improve the [...]
[...] a report from Borrell Associates it states that Facebook will get 74% of their advertising revenue from local advertisements. With [...]
[...] Local Ads Moving to Social Networks Borrell Associates [...]
We’ve advertised on Facebook for some of our clients. We expected click through rates would be extremely low compared to search and they were even lower than we expected. At this point, we haven’t found it to be effective in marketing local service based businesses.
[...] sins of landing page design, Inside AdWords http://www.marketingsherpa.com/article.php?ident=31302# Local Ads Moving to Social Networks, Borrell Associates When Social Media & PR Matters More Than SEO, Small Business [...]