Local Businesses Responsible For 20 Percent of Social Network Advertising
By Anna Johnson on July 21st, 2009Research by Borrell Associates indicates that local businesses are responsible for nearly 20 percent of all advertising spending on social networking sites.
Borrell estimates that local advertisers will account for approximately $641 million of the almost $3.3 billion spent on social network advertising in 2009.
That’s still a drop in the ocean compared with spending in other media. According to Borrell, advertising on social networks amounts to just 3 percent of all local advertising expenditure, and amounts to just a few hundred thousand dollars or less in most markets.
Meanwhile, the major social networks, Facebook and MySpace account for most (57 percent) of all local advertising on social networks. Borrell says they are the only two networks generating more than $100 million from local advertising.
Facebook, in particular, is proving popular with local advertisers, with local business advertising accounting for a massive 74 percent of its ad revenues.
Source: Gordon Borrell, “Local Ads Moving to Social Networks,” Borrell Associates, July 12, 2009
