Commentary

Marketers Buy Into Social Networks and Viral Video

According to a comScore study of U.S. online display advertising on social networking sites in June 2009, social networking sites accounted for more than 20% of all display ads viewed online, with MySpace and Facebook combining to deliver more than 80% of ads among sites in the social networking category.

Top Online Display Ad Publishers in Social Networking Category (June 2009 Total U.S.; Home/Work/University Locations)

 

Total Display Ad Impressions (MM)

% Share of Display Ads

Ad Exposed Unique Visitors (000)

Total Internet Audience

326,899

100.0%

188,589

Social Networking

68,927

21.1

129,620

MySpace Sites

30,004

9.2

64,472

Facebook.com

26,813

8.2

67,389

Tagged.com

1,940

0.6

7,422

MocoSpace.com

496

0.2

1,067

Hi5.com

461

0.1

3,459

Bebo

435

0.1

6,350

Classmates.com Sites

400

0.1

9,181

BlackPlanet.com

345

0.1

2,084

GaiaOnline.com

258

0.1

1,859

DeviantArt.com

204

0.1

3,681

Source: comScore Ad Metrix, September 2009

Jeff Hackett, comScore senior vice president, said "... social networking ... accounts for a significant portion of the time Internet users spend online and the pages they consume,... (and) advertisers are eager to use social networking sites as a new advertising delivery vehicle."

AT&T ranked as the top display advertiser on social networking sites in June with more than 2 billion ad impressions, which accounted for 30% of the company's total number of display ads delivered during the month. Experian Interactive, which delivered a heavy rotation of ads for educational degree programs and credit scores, ranked second with nearly 1.3 billion impressions in the category.

Two of the top ten advertisers on social networking sites in June delivered the vast majority of their impressions within the category. Pangea Media, which primarily advertises a variety of love and celebrity quizzes, delivered 90% of its ads on social networking sites, while online gaming provider Zynga delivered 97% of its ads on these sites.

Top Online Display Advertisers in Social Networking Category (June 2009, Total U.S.; Home/Work/University Locations)

 

Total Display Ad Impressions (MM)

Share of Advertiser Ad Impressions

Ad Exposed Unique Visitors (000)

Social Networking Category

68,927

21.1%

129,620

AT&T, Inc.

2,067

29.5

87,080

Experian Interactive

1,250

23.9

58,991

Ask Network

950

44.6

41,379

Sprint Nextel Corporation

790

26.3

68,581

Pangea Media

572

89.6

33,079

Microsoft Sites

564

16.8

60,148

Apollo Group, Inc.

510

41.4

51,981

Zynga.com

484

96.8

40,009

GameVance.com

450

33.9

34,762

Verizon Communications Corporation

435

10.5

54,010

Source: comScore Ad Metrix, September 2009

Hackett added "... the category should continue to grow in ad volume, while CPMs could also increase if the sites can demonstrate a high campaign ROI."

And, an almost concurrent ANA survey done by the ANA and BtoB Magazine says that, as marketers embrace new media platforms, social media and viral videos have seen the largest jump in ranking. The survey found that 66% of marketers utilized social media in 2009, as compared to 20% in 2007.  50% employ viral videos, up from only 25% in 2007.

In order to properly fund these new media formats, 55% of respondents have shifted funds from their traditional media budget, while 48% shifted funds from other marketing communications budgets.   26% of marketers created an incremental budget.

Among social networks being embraced by all marketers, the top sites used are:

  • Facebook (74%)
  • YouTube (65%)
  • Twitter (63%)
  • LinkedIn (60%)

And, in 2009, the most effective newer media platforms were:

  • Search engine marketing (SEM) (65%)
  • Own Web site (59%)
  • Search engine optimization (SEO) (55%)
  • E-mail marketing (45%)

Bob Liodice, president and CEO of the ANA, says "As more media platforms become available... marketers must survey the entire landscape available to them and create their brand's most optimal media mix."

The study results also reveal that b-to-b and b-to-c marketers differ in the ways they use new media platforms, including:

  • While mobile is used by 32% of overall marketers, it is three times more likely to be used by b-to-c versus b-to-b marketers (52% vs. 18%)
  • LinkedIn rates first among b-to-b marketers while Facebook is top among b-to-c.  Interestingly, says the report, Twitter is used more by b-to-b marketers (70%) than b-to-c marketers (46%)
  • B-to-c marketers see much more effectiveness from SEM (76%) than b-to-b marketers (48%)
  • Webinars are a much more effective platform for b-to-b marketers (48%) versus b-to-c (6%)

In the next year, blogs are the new media format at the top of the list for all marketers (34%), followed by mobile (28%) and social media (23%), among marketers not already using each respective platform.  The newer media platforms that will get the most spending in 2009 are the more established platforms:

  • Own website (26%)
  • Search engine marketing (19%)
  • Online ads. Banners, etc. (17%)

To review the ANA report, please visit here, and to visit ComScore, please go here.

 

2 comments about "Marketers Buy Into Social Networks and Viral Video".
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  1. Howie Goldfarb from Blue Star Strategic Marketing, September 9, 2009 at 11:35 a.m.

    Funny all those ads on Facebook and Myspace and I have not seen one of them. Myspace gets it right when they replace the wall paper with an ad because that actually gets through the Firefox Ad Blocking software. As I continually state social networks people treat like their bedroom. They aren't happy to have Ads following them to private places. That is why the networks should charge for their service. I bet if Facebook charged even as little $3 per month revenues would far surpass anything they will earn from Advertisers.

  2. Tyler Lecompte from MeHype.com, September 9, 2009 at 2:37 p.m.

    The B2B and B2C survey results are not shocking, they only support the things I have been telling interested marketers for months now about both Social Networks and Viral Video.

    Mr. Liodice is correct in his read of the marketing mix; it will need to be optimized individually for each brand, making these simple tools in a larger, integrated toolbox. As for myself, I see many of the brands advertising in these areas experiencing increased presence and word of mouth in the short term.

    My question is - Could we see a new super-network being launched soon to satisfy the Socialsphere's hunger for content and income? Has it already launched? Thx.

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