Ad spend on social networks is increasing

The Nielsen Company reported that estimated online advertising spend on the top social network and blogging sites was $108 million in August 2009, a...

The Nielsen Company reported that estimated online advertising spend on the top social network and blogging sites was $108 million in August 2009, a 119% increase from $49 million in August 2008.

Entertainment was the industry that increased its social network advertising the most, spending $10 million in August 2009, an 812% increase over $1.1 million in August 2008. The travel (364% growth), business-to-business (184%), and automotive (178%) industries also increased their ad spending on social media sites, even while spending less on overall online advertising.

"In the past, advertisers had significant concerns with social media advertising," said Jon Gibbs, VP of media and agency insights, Nielsen's online division, in a statement. "The considerable increases we've seen in ad spending over the past year suggest that many of these concerns have subsided or been addressed. In particular, advertisers that want to connect with core fan bases, such as movie studios, are allocating more and more dollars to online communities like Facebook and MySpace, where they can engage in an ongoing dialogue with their target market."

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