Increase In Social Media Marketing = Yeah, Facebook Matters To Your Brand

Today's article is all about the increase in budgets for social media marketing. What does this mean for the industry? Essentially, marketing gurus understand that we are in a world where print advertising is beginning to slowly decrease in lieu of an increase in (free) marketing initiatives on the web. The following article now warrants this claim with the appropriate financial data and research: 

Social Media Marketing Spend to Hit $3.1 Billion by 2014

By Adam Ostrow

We already knew that social media marketing budgets were on the rise, but now we know by how much. Forrester Research is out with their Interactive Marketing Forecast for the next five years, and estimates social media marketing to grow at an annual rate of 34 percent – faster than any other form of online marketing and double the average growth rate of 17 percent for all online mediums.

Of course, social media is starting from a smaller base. Forrester estimates that $716 million will be spent on the medium this year, growing to $3.1 billion in 2014. At that point, social media will be a bigger marketing channel than both email and mobile, but still just a fraction of the size of search or display advertising ($31.6B and $16.9B, respectively).

Not surprisingly, some of this growth comes at the expense of offline advertising. Forrester estimates that online advertising will grow from 12 percent of total marketing spend this year to 21 percent by 2014, meaning that offline ad spend will fall. In fact, Forrester concludes that “overall advertising budgets will decline,” meaning efficiencies are being had by shifting money to the Web.

In any event, it’s hard to argue that the numbers don’t paint a fairly rosy picture for the future of social media marketing. At Mashable, we’ve been covering an influx of innovative social media campaigns lately – check out a few of them:

Social Media Goo: Cadbury Campaign Going Viral

Dead Grasshoppers Give Life to Social Media Marketing Campaign

SeaWorld’s Whale of a Social Media Campaign

Social Media Giving: Target’s Smart Facebook Campaign

Why Ford is Winning on the Social Web

Is Social Media Making Corporate Websites Irrelevant?

Image courtesy of iStockphoto, alexsl