Social media’s newest advertising weapon
Native advertising makes brands part of the conversation
November 27, 2012
During the early years of social media, advertising was all about real estate.
Companies placed their messages in small spaces alongside newsfeeds and status updates, hoping to catch users’ eyes.
The problem was that users quickly trained their eyes to stop looking at those locations, tuning out the advertisements.
Going forward, though, social media advertising will be more difficult to ignore.
Sites are increasingly incorporating advertising organically into their content, such as including promotions in a Twitter stream or Facebook newsfeed, making them all but inescapable.
This approach, called native advertising, will help spark a huge increase in social media ad spending over the coming years, as brands push to become part of the conversation rather than just adjacent to it.
A new report from BIA/Kelsey, the Chantilly, Va., local media consulting and research firm, projects that social media advertising will grow from $4.6 billion this year to $9.2 billion by 2016.
Total social media ad spending will grow at a compound rate of 19.2 percent in that span. While social display ads, the traditional format, will increase at a rate of 15.2 percent, native ads will pump along at a growth rate of 26 percent annually.
Native advertising will increase from $1.53 billion this year to $3.85 billion in 2016.
News today seems to support BIA/Kelsey’s bullish outlook for native advertising.
Several analysts raised their outlook for Facebook stock, following six rocky months since its debut, crediting in part new advertising opportunities such as promoted posts, which insert ads directly in users’ newsfeeds.
By using such methods, predicts Bernstein Research’s Carlos Kirjner, Facebook will “become something different from (and better than) a very large display advertising publisher.” He bumped up his outlook for ad spending on the social network next year to $6.2 billion.
It’s been a long slog for social networks to reach the point where their advertising showed this much promise.
In its relative youth, before MySpace gave way to Facebook as the world’s No. 1 social site, social media made advertisers nervous.
There was no way to predict what sort of content their ads would appear next to, a big concern during the early days of internet advertising.
But as social networks have become more popular, with Facebook recently surpassing the 1 billion member mark, those concerns have fallen by the wayside, and now the big push is to integrate advertising more seamlessly into the sites, as well as find more mobile social media advertising opportunities.
Native advertising delivers in that area as well. With the ads integrated into content, there are fewer worries about users overlooking them on smaller devices.
Tags: ad spending, ad spending social media, ads, advertising, bia/kelsey, facebook, forecasts, media, outlook, social media, social media ad spending, social media advertising, social media spending, twitter
Another magazine bids farewell to print: Complex
Coming soon from Hearst, Pioneer Woman magazine
New from Google: New York’s holiday windows
Solid but not spectacular numbers for ‘Hairspray’
New from Facebook, a tool testing for fake news
Programming blog: What’s canceled and renewed
Cable overnights: Big decline for Leah Remini show
Yet another suitor lines up for Time Inc.
What’s hot and what’s not in syndication this fall
Struggling Pandora unveils its challenge to Spotify
It’s here: Media Life’s Hispanic Premium Newsletter
Media Life’s Digital Media Transparency Initiative
Hot this holiday season: Taraji P. Henson
- ABC ad sales president Geri Wang retiring
- Lydia Polgreen becomes editor at The Huffington Post
- Laura Henderson becomes SVP of marketing at BuzzFeed
- Erin McPherson becomes head of content strategy at Verizon
- Josephine Livingstone becomes culture writer at The New Republic
- Jessica Lichtenfeld becomes associate consultant at Coleman Insights
- Julie Ginches and Glenn Kiladis join ViralGains
- Stephan Horbelt becomes executive editor at Hornet
- Tony Rock hosting TV One's 'The Game of Dating'
- New York Times Vietnam guide Nguyen Ngoc Luong dies at 79
This week’s broadcast ratings
This week’s cable ratings
This week’s top-rated movies, songs and books
This week’s daypart ratings
This month’s digital traffic data: August 2016
This month’s new media traffic data
Luxury media sales in Chicago
Public relations account supervisor in Atlanta
SEO and SEM manager opening in Pittsburgh
Media supervisor opening in New York
Media buyer/planner position in Madison, WI