- Posted August 6, 2013 by
The Social Media Advertising Boom
Recently, Facebook announced the introduction of video ads on the main news feed, which are said to be “unskippable” for users.
These ads are said to run about $2.5 million each, making them more expensive than ads that appear on the Super Bowl, according to Bloomberg. Facebook users would also not see more than three ads on any given day, and the ads would generally run for about fifteen seconds.
Whether or not Facebook fans will hate it is irrelevant at this point – people will still use Facebook, and advertisers understand that the time given to the popular social media site is worth the impressive sum of money. According to a report by BI Intelligence, Americans were “spending an average of 12 hours per month on social networks,” and 18-24 year olds spent about 20.
To add to that, any radical implementation to Facebook, such as a change in privacy settings, has caused little damage to the company, with only a few thousand completely quitting. Compared with the one billion members, that number is insignificant.
“One of the things I watch most closely is the quality of our ads and people’s sentiment around them,” Zuckerberg said. “We haven’t measured a meaningful drop in satisfaction.”
It is a safe bet that swarms of users will not be leaving Facebook even if this is implemented.
Other companies are not targeting a specific demographic or field instead of advertising in general. DreamTeamGroup, an Indiana-based marketing and investing firm, recently reported that they amassed more than 2 million social media followers, making it the “most widely followed Investor Relations/Public Relations/SocialMediaRelations firm,” according to the firm’s website.
Social media advertising for investors has taken off, as evident by the success of DreamTeamGroup. Several months ago, the Securities and Exchange Commission announced what were called “drastic measures” to make social media “fair game” for information to be given out to investors, according to USA Today. It is becoming clear that most forms of business demand social media attention, and the money flowing in and out of these online worlds will increase exponentially over the next few years.