Mar 8, 2011
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What is Social Media missing when it comes to advertising and revenue?

As popular and engaging as Social Media is there are a number of issues that restrict its development. Let’s be clear, social media has a very strong and sustained future, but the clue is in the title. It’s Social Media not Commercial Media.

To get over the problems preventing its adverting development, it needs to have more connections and friends in the form of advertisers to concrete its place as a good marketing method.

According to research this may change in 2014, advertising spend is expected to grow to over $3.1billion. That is an increase of $716 million. So, surely this is enough investment to grow Social Media Advertising. Well, by the year 2014, 60% of the total online advertising spend will fall into SEO and PPC methods. This percentage is approximately 10 times what the Social Media would receive.

Therefore, the Social Media market may be a limited market hence why it does not receive the same spend as the SEO and PPC campaigns. While $3.1 billion may sound like a lot of money – in respect to the whole picture it is not.

Facebook and MySpace are today’s most prolific social media revenue generators, and these two websites account for the vast majority of social media online spend. The increase of $716 million that is estimated to boost the social media will either land with MySpace or Facebook.

The important key points that we have to make is that if you are looking for a great digital marketing channel that is new and receptive for the next 5 years and unless social media finds a brand new business model that is very streamlined, then your online ad spend will be allocated to either Facebook or MySpace. Unless, we experience a sudden collapse of the online market as we know it.

For today and now, Social Media does host a number of opportunities, potentially more for the local business and not the large commercial enterprises. Despite this, SEO and PPC are still regarded as king in online digital marketing.

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