On Monday we posted on Snoows about social “overtaking” search when it comes to the agendas of advertising agencies (more agents now consider social media a priority online advertising location over search).
In that same vein is another story of social media news: it seems that by the end of 2012 “half of Facebook ad budgets will be directed to social ads – of those taking into account the social profile, likes/dislikes and other infomation found in Facebook users’ profiles,” according to Marin Software in an article published on BizReport.
Facebook is able to serve ads based on relevance, and this is something that marketers are tapping into. Using the tailored software, more and more companies are combining a users’ specific interests with social media calls to action (for example, suggesting they “click like” or become a fan of a page, and other actions that happen on social media sites).
This increase in Facebook ad spending is being credited to the social media giant’s IPO. Facebook is in the process of becoming a publicly-traded entity this year. When they filed their IPO, Initial Public Offering, the company was estimated to be worth $75 billion (here’s one of our original articles about the Fb IPO that we published when the news broke earlier this year). Facebook’s huge economic power and mass appeal means that ads can be very successful, with so many people spending vast amounts of time on the site along with the curated marketing and “sponsored stories” that offer targeted marketing to users.
The Biz Report article goes on to say that, “We ultimately see Facebook allowing us to engage in a more precise fashion, and the recent post-targeting announcement is a step in this direction. Right now brands can do ads, and they can sponsor content that resonates for greater reach.”
Companies are taking note of the success sponsored stories have and that’s why we’re seeing ad dollars going back into social-based marketing. As the IPO takes hold and Fb goes public, more users sign on and the platform develops more – it will be interesting to see the direction marketing on the social media goes.