Social media use continues to increase, on both the consumer and marketer side.
Another new study from Vizu found that 64% of US advertisers will increase their spend on paid advertising on social media sites in 2013.
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As more consumers become active on social media, social media ad spending is bound to increase. Social media networks are places for businesses to connect with consumers on a more personal level. Here are three reasons social media ad spend will continue to increase year after year.
Loving the Locals
Business owners can reach local customers with geographic targeting and this is just one of the reasons local ad targeting is becoming more popular. Small businesses want to reach locally based customers who are able to actually visit their brick-and-mortar stores. Larger businesses want to create more segmented ad campaigns so they can reach and connect with the customers near specific stores and create tailored content for each ad.
BIA/Kelsey expects social advertising's local penetration to steadily increase as social networks continually improve the ease of onboarding, local targeting and campaign management for both brands and SMBs.
- They predict that locally targeted social ad revenues will grow at a 26.4% CAGR, from $1.1 billion in 2012 to $3.6 billion in 2017. (Tweet this stat!)
As a small business, you have the best insight into the type of information and products locals in your area want. Use this information to serve up the most locally-targeted ads possible.
Crazy for Keywords
Businesses target consumers using keywords on sites such as Bing, Google and Yahoo!. Social media platforms are getting on board with the relevance of keyword targeting.
Last week, Twitter unveiled its most recent changes to its advertising system for businesses and marketers. Advertisers can now tailor their ad messages based on what keywords users are tweeting about in their posts. This feature makes the Twitter advertising platform a lot more appealing, especially to those working within a niche.
Anthony Ha at Tech Crunch explains that users won't see more ads and that the new system is "just an extra way to target those users." Twitter still stands by its ability and goal of trying to show only relevant content that's "engaging to users." Keyword targeting boosts the likelihood your ad is relevant to the person viewing it.
Ads that Engage
If content is king, relevance is queen and engaging ads ask for both in order to be successful. By 2017, the percentage of display ads will dip to 58% of total social media ad spending, the report says. "Social networks are evolving their ad products and features to improve performance," said Jed Williams, director of consulting and senior analyst, BIA/Kelsey. "Native social formats, including video and mobile-social advertising, will be the principal market growth drivers."
Vizu found that fewer advertisers and agencies used social ads as a pure direct-response tool to drive site visits or other actions, but 54% of agencies and 39% of advertisers reported using social ads to do some mix of branding and direct response.
As social ad products become more sophisticated, more advertisers, including small businesses, will be drawn to social ad products. Connecting with consumers is the ultimate goal and when target audiences are active on social networks, businesses need to find ways to advertise effectively on those platforms. Social media ad spending is increasing and small businesses can take advantage of the local and keyword targeting segmentations to compete and win with larger corporations.