Advertisers to spend 10% of their Online Budgets On Social Media

US marketers will spend $3.08 billion to advertise on social networking sites this year, eMarketer predicts. Spending will be up 55% over the $1.99 billion advertisers devoted to social networks in 2010 and will rise by a further 27.7% next year to reach nearly $4 billion.

This year’s dramatic growth in spending will bring social media ad dollars to 10.8% of the total spent online in the US. Worldwide, where social network ad spending will rise 71.6% to $5.97 billion, that proportion will be somewhat lower, at 8.7%.

The 2011 forecast for US spending is $1 billion higher than eMarketer’s last estimate of US social network ad spending, made in August 2010. The primary driver of the change in projected spending is greater ad spending on Facebook, by far the biggest player in the space.

eMarketer predicts ad spending on the world’s top social network will reach $2.19 billion in the US this year and just over $4 billion worldwide—both more than double last year’s figure. 

source: Emarketer