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Marketing Data RoundUp: Facebook ad spend to top $3B in 2011 | iPad user are not ready to pay for content

Facebook Drives US Social Network Ad Spending Past $3 Billion in 2011

US marketers will spend $3.08 billion to advertise on social networking sites this year, eMarketer predicts. Spending will be up 55% over the $1.99 billion advertisers spent on social networks in 2010, representing 10.8% of the total online ad spend in the US, and will rise by a further 27.7% in 2012 to reach nearly $4 billion.

The 2011 forecast is $1 billion higher than eMarketer’s last estimate of US social network ad spending, made in August 2010. Larger than anticipated ad spending in Facebook is the reason, it says. eMarketer predicts ad spending on the world’s top social network will reach $2.19 billion in the US this year and just over $4 billion worldwide - both more than double last year’s figure.

iPad Users Are Not Ready to Pay for Entertainment

It is going to be a while before the iPad becomes a "fourth screen" and creates new revenue streams for content providers, according to a survey by Knowledge Networks of 205 iPad owners and users. There is some good news for marketers: 76% of owners use the iPad at least five days a week, while 55% use the device everyday. But these users are bringing the free Internet mindset to the iPad, and only a small portion of users is willing to pay for content.

This is a trend worth watching, Knowledge Network says, as the iPad's advertising-supported media model means iPad users must register with iTunes, providing much personally identifiable information through a pay wall. At the same time, Apple's iAd advertising product can be purchased only through Apple, creating an entirely different advertising ecosystem that industry analysts are watching closely.

The study also shows that 70% of iPad owners/users have read an e-book on the device; 61% an electronic magazine or journal; and 51 have watched network TV programs. Yet only 13% of iPad owner/users would be willing to pay extra for an iPad-friendly version of a magazine or TV show they already pay for in its standard format, such as a cable or magazine subscription.


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