Outsell: Social marketing spend to top $80 million

It appears that social networking isn't just for users any more. According to a new report from Outsell Insights, marketers are pushing more advertising dollars into the social space.

by Kristina Knight

Researchers estimate that the social network marketing spend will reach $80 million by the end of 2007.

Social marketing as well as social networking has shown considerable growth in the past 12 months. Some sources point to Facebook opening their platform to all users rather than only students as part of the impetus behind the growth spurt. According to Nielsen//Netratings Facebook showed 125% growth from 2006 to 2007 which perennial number one social network MySpace showed 19% growth. However, MySpace still firmly leads the social networking pack with 59 million unique users while Facebook has 19 million uniques.

Whatever the reason for the huge growth of social networks it appears that more and more users are logging on to share information and meet friends. And more and more marketers are following users into the social space hoping to gain a few converted shoppers along the way.

Creating a branded microsite within a social network, in addition to advertising in widgets, is a good first step for most marketers. By friending social networkers and offering a space for them to gain information about products or services marketers have a low-cost hub that could enhance the ROI of marketing campaigns.