Social networks have seen explosive growth in recent years, with 2 out of every 3 people online visiting a social network in 2006. Large companies are recognizing the importance and profitability of social media, with advertising spending on social networks forecast to reach $61 billion by 2012. While large corporations will take time to implement campaigns, small and medium businesses are quickly moving to leverage social networks for marketing. Social networking is not just a fad but rather will continue growing as an important part of online activities and advertising.

1. Social Networking Fact Sheet PAGE 1
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SOCIAL NETWORKING FACT SHEETSOCIAL NETWORKING FACT SHEETSOCIAL NETWORKING FACT SHEETSOCIAL NETWORKING FACT SHEET
STATISTICS AND DEVELOPMENTS INDICATING THE NECESSITY
OF SOCIAL NETWORKS FOR BUSINESS AND MARKETING
Provided by seotix.com
During the summer of 2006, several key
indicators were pointing to the trend that
business executives and investors were starting
to notice social networks and their potential
impact on online advertising and marketing.
Many popular bookmarking and social
networking sites have been acquired by larger
corporations – the most famous of which was
Google’s acquisition of the social video network,
YouTube.
However, what is more interesting to business
owners and C-level executives are the large
investments being made into advertising models
and programs within social networks.
In June, Interpublic Group announced it would be
developing marketing programs on FaceBook for
its agency clients to the tune of $10 million
worth of ad space.
In early July, WPP Group invested $2 million into
corporate social network, LiveWorld. This unique
joint venture will help WPP’s agency clients, such
as the skincare company Dove, deploy their own
social networks.
All this is fascinating. As a social networking
participant, we are excited that Fortune 1000
companies and large advertising agencies are
recognizing the importance and profitability of social
networks far faster then they recognized the benefits
of search marketing.
What we see today is that while large corporations
will take time to implement their large-scale
campaigns, small and medium-sized companies are
moving quickly to acquire their piece of the social
networking pie.
For instance, Forrester’s December 2005 survey of
marketing executives showed that 13% were
marketing via blogs or social networks at the time,
but 51% forecasted “total adoption” of such
marketing strategies within the next 12 months.
According to Shar VanBoskirk, “Forrester forecasts
that interactive marketing spend will grow to $61
billion by 2012, an increase driven by marketers who
will leverage a distribution of channels rather than
pour new spends into a single place.”
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NETWORKING SPACE?NETWORKING SPACE?NETWORKING SPACE?NETWORKING SPACE?
ComScore Media Metrix says that the total US
Internet audience has grown by roughly 4% in 2006.
Yet several social networks like MySpace, Facebook,

2. Social Networking Fact Sheet PAGE 2
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and Bolt have seen growth percentages in the
triple-digits. The screen shot below taken from a
ComScore press release dated July 2007 shows
the worldwide growth of social networking sites:
(source: ComScore)
According to Nielsen/NetRatings, the top 10
social networks (MySpace, ClassMates.com,
Flickr, FaceBook, YouTube, etc.) received roughly
68.8 million unique visitors by 2005 – reaching
45% of all active web users.
An excerpt from Charlie Buckwalter’s article,
Senior Vice President of Neilsen’s Research and
Analytics, says:
“The longer-term prospects for the global online
medium continue to be bright. Led by social
media, search, video and the continued online
ramp up of the leading marketers, online’s share
of total advertising spend will continue its steady
upward trend as we emerge from the current
recession.”
Nearly 50% of all Internet traffic ran through one
or more social networks last year. But think of
the explosive growth and public acquisitions in
2006…
In June of this year, US web stats company,
Compete, released some fascinating data that blows
2005’s growth out of the water:
Their key findings:
In June, 2006, 2 out of every 3 people online
visited a social network
Social Networking sites are now close to
eclipsing traffic to search giants like Yahoo! and
Google
MySpace received 55 million visitors in June
2006
For those of us who participate in the global markets,
it’s interesting to note that Bebo overtook MySpace
as the top social network in the UK during most of
2006.
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FAD JUSTFAD JUSTFAD JUSTFAD JUST THATTHATTHATTHAT ---- A FAD?A FAD?A FAD?A FAD?
Jon Gibs, senior director of Nielsen/NetRatings, said
social networking sites are the "reality television of
the Internet."
“The content is relatively inexpensive for publishers
to produce, and social networking is not a fad that
will disappear," Gibs points out. "If anything, it will
become more ingrained in mainstream sites, just as
reality TV programming has become ubiquitous in
network programming.”
This translates into an immense opportunity for any
business owner or executive. First, online advertising
is far more affordable than television or traditional
media advertising. Second and more importantly,

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there are ways to market in the various social
networks without spending money on
advertising.
These strategies include maintaining your own
blog, creating profiles for your company on
MySpace and other networks to interact directly
with your audience (without spamming, as we’ve
seen recently occurring on MySpace), producing
engaging and buzz-worthy content that gets
circulated among bookmarking web sites (as
well as Technorati), creating business pages on
Facebook and producing media content for
networks like YouTube and BlogTalkRadio.
The key to success in marketing with social
networks is to understand that there’s no middle
man here. No marketing hoopla. And no wall of
corporate messaging to hide behind.
As for advertising on social networks, Facebook
and MySpace have free ad tracking tools that
will show how effective your ads are. Twitter
recently launched an advertising platform in April
this year, but is not yet available to everyone.
They hope to build in some robust features into
their advertising model before full
implementation.
Social networks are transparent; to effectively
engage their audiences you have to be willing to
be transparent as well. All you need are some
creative strategies for communicating with your
audience – which we are happy to provide you.
Contact us for a free consultation to discuss how you
can use social networking to advance your marketing
goals.