Click here to close now.


News Feed Item

This isn't your father's pop up ad: Social media brands engage to the tune of $11 billion in ad spend by 2017

CHICAGO, Aug. 5, 2014 /PRNewswire/ -- When it comes to social networking landscape, advertising is merely one piece of the social media puzzle, but it's a big one. Mintel predicts that the total advertising spend on social media in the US will surpass $11 billion by 2017—and it's apparently working. Nearly 40% of US social networkers said social media has some influence on them when conducting research for products and services. Men and women aged 18-34 are the most likely to use social media to guide purchase decisions, with 21% of 18-34-year-old men reporting they purchased a product by clicking on a social ad.


While display ads have traditionally dominated the digital marketing world, social media shows a clear push for native advertising—defined as a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed. Indeed, native advertising is expected to outpace this overall ad growth, increasing from $1.8 billion in 2013 to $9.4 billion in 2018.

"Social advertising spend is on the rise and shows no sign of slowing down," says Mintel technology analyst Bryant Harland. "While display ads still play a key role in terms of brand awareness and new product discovery, getting the most out of social media marketing requires a greater emphasis on aiding networkers in conducting deeper research and helping them find information that is truly relevant to their needs."

To that end, some 79% of those surveyed have viewed or shared content from a company or visited a company's social media page. Nearly one quarter of networkers said they looked for more information on a search engine after seeing a video, image, or other social media post that a company put on social media, and 28% said they visited the company's website after seeing content from the brand. Only half of networkers said that social media has no influence on their purchasing decisions, suggesting that 50% do consider social network content to some degree.

Only 9% of networkers said they made a purchase by clicking on a social media ad. However, 11% said they purchased a product they saw advertised without clicking an ad, suggesting there is more to social advertising than direct conversions.

"Although third-party review websites and the brand's website are the top avenues for research overall, companies can still gain considerable traction by making product information readily available through social media," continues Bryant. "Native advertising is a less blatant form of advertising relative to methods past, and seems more organic and customized to the user. Considering that any high frequency of social media usage, including more frequent interaction with friends, correlates with a higher likelihood of using social media for research, the value of the channel vastly improves when looking at the most active networkers."

So where to place the advertising dollars? When considering weekly usage, Facebook is the clear winner, with 86% of networkers reporting they visit the site once a week or more, followed by YouTube (60%), Google+ (43%), Twitter (37%), LinkedIn (30%), Pinterest (30%) and Instagram (28%). Along with the younger demographic, parents show an increased responsiveness to advertising (19%) and a higher tendency to buy products and services that their social media friends use (15%) compared to those without children in the household.

About Mintel
Mintel is a leading global supplier of consumer, product and media intelligence. For more than 40 years, Mintel has provided insight into key worldwide trends, offering exclusive data and analysis that directly impacts client success. With offices in Chicago, India, London, Malaysia, New York, São Paulo, Shanghai, Singapore, Sydney, Tokyo and Toronto Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit

Follow Mintel on Twitter, LinkedIn, or catch up with the latest news, views and information from the team behind Mintel on The Mintel Blog. You can also like Mintel on Facebook.

Logo -


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
The cloud has reached mainstream IT. Those 18.7 million data centers out there (server closets to corporate data centers to colocation deployments) are moving to the cloud. In his session at 17th Cloud Expo, Achim Weiss, CEO & co-founder of ProfitBricks, will share how two companies – one in the U.S. and one in Germany – are achieving their goals with cloud infrastructure. More than a case study, he will share the details of how they prioritized their cloud computing infrastructure deployments ...
Data loss happens, even in the cloud. In fact, if your company has adopted a cloud application in the past three years, data loss has probably happened, whether you know it or not. In his session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how common and costly cloud application data loss is and what measures you can take to protect your organization from data loss.
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
Decisions about budgets and resources are often made without IT even having a seat at the table. As technologist we understand the value of DevOps - but do your business counterparts? If they don't, your DevOps initiatives could lose funding before they start. In her session at DevOps Summit, Jeanne Morain, Strategist / Author at iSpeak Cloud, LLC, will provide insights on how to bridge the gap between business and technology leaders. Attendees will learn prescriptive guidance on balancing wor...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated a...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
For almost two decades, businesses have discovered great opportunities to engage with customers and even expand revenue through digital systems, including web and mobile applications. Yet, even now, the conversation between the business and the technologists that deliver these systems is strained, in large part due to misaligned objectives. In his session at DevOps Summit, James Urquhart, Senior Vice President of Performance Analytics at SOASTA, Inc., will discuss how measuring user outcomes –...
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud wit...
While testing is often ignored when it comes to DevOps - it could be the most important aspect of achieving true DevOps success. Without rethinking automated testing from the ground-up, the entire DevOps productivity gain cannot be realized. Large tech companies build their own rapid test automation that runs in minutes across functional, performance, security and other tests. In his session at DevOps Summit, Kevin Surace, CEO of Appvance, will discuss how we learn from these real-world succe...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, ...
“All our customers are looking at the cloud ecosystem as an important part of their overall product strategy. Some see it evolve as a multi-cloud / hybrid cloud strategy, while others are embracing all forms of cloud offerings like PaaS, IaaS and SaaS in their solutions,” noted Suhas Joshi, Vice President – Technology, at Harbinger Group, in this exclusive Q&A with Cloud Expo Conference Chair Roger Strukhoff.
SYS-CON Events announced today that Cloud Raxak has been named “Media & Session Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Raxak Protect automates security compliance across private and public clouds. Using the SaaS tool or managed service, developers can deploy cloud apps quickly, cost-effectively, and without error.
DevOps is gaining traction in the federal government – and for good reasons. Heightened user expectations are pushing IT organizations to accelerate application development and support more innovation. At the same time, budgetary constraints require that agencies find ways to decrease the cost of developing, maintaining, and running applications. IT now faces a daunting task: do more and react faster than ever before – all with fewer resources.