Online marketers adore social media marketing because it has been a free channel in the past for customer outreach , however almost two-thirds of those who answered a recent survey that they will be spending more on paid social media ads this year.
Quite a few digital brands have been investing in non-paid social media marketing campaigns but according to a new from the Nielsen-owned company, Vizu, 64 percent of online marketers say they will increase their budgets for paid social advertising this year. Thirty-four percent said that they will stick to the previous budgets, while the rest , two percent said they would be cutting down on their budget.
The study’s other findings also suggested that majority of respondents (advertisers and agencies) had been using paid social media advertising for less than three years. The story does not end there, what is astounding is that 20 percent said they only started in last year. Social media may have been discusses a million times but a chunk of 70 percent of respondents dedicated just 10 percent or less of their online ad budget to paid social media.
Social media is being used by marketers primarily as a branding tool instead of a direct response tactic. Nearly half (45%) of advertisers say they use paid social media advertising for branding, such as raising awareness and influencing brand opinions. Just 16 percent say their efforts are primarily direct response-related, including driving product trails and site visits.
Spending on social media advertising spells good news for Facebook and Twitter, LinkedIn and many other popular social destinations that rely on ad dollars. These spends could be relatively small as 41 percent of marketers said their budgets will rise less than 10 percent; another 15 percent estimated budget increases of 11-20 percent.