Social Network Advertising Market: Overview of key Market Forces Propelling and Restraining Market Growth

Social networking advertising is the means of gaining attention of customers by utilizing social networking portals. Increasing use of internet and social media have forced marketers to find better ways of communication and engagement with customers so as to increase the efficiency of advertising, increase their customer base and create loyal customers.

The global social media market reported USD 11.78billion revenue in 2011 and this is expected to increase to USD 17 billion in 2012. In this market, the major contribution of 60% by the social networking advertising market generated revenue of USD 5.52 billion in 2011 which is expected to generate revenue of almost USD 9 billion in year 2012. Social media advertising market is expected to grow 52% to 58% year over year.

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Increasing popularity of social media sites is one of the major drivers for this market. Also emerging countries like India and China also drive this market due to large potential internet users in future. Increasing sale of smart phones is a key driver for this market. The major challenge for this market is the increasing abuse of social media and security concerns related to social networking. ROI for the marketer is another restraint.

On the basis of different advertising types, the social networking advertising market is divided into different segments – banner ads, newsletter subscription ads, corporate profile with fans and logos, corporate profile without fan and logos, get widgets, give widgets, sponsored content and so on. This report also includes the geographical segmentation of the social networking market into four regions U.S, Europe, Asia-Pacific and Rest of the World.

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Facebook is the leading company having active users – an average nine million active users per week followed by Twitter and Qzone as per current data available. This report also includes the company profile of major players in social networking advertising – Facebook, Twitter, Qzone, LinkedIn, Google plus and many others

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