Shift Happens: "Where the Ads Are"

The Nielsen Company reports that time  spent on social network and blogging sites accounted for 17% of all time  spent on the Internet in August 2009, nearly triple the percentage of time spent  on the sector a year ago.

Year-over-year, estimated online advertising spend on the top social network  and blogging sites increased 119% to approximately $108 million in August 2009. The share of estimated spend  on these sites has also grown, increasing from a 7% share of total  online ad spend in August 2008 to a 15% share in August 2009.

Jon Gibs, Vice President, media and agency insights, Nielsen’s online division, said “… While video and text content remain central to the Web experience… the desire  of online consumers to connect, communicate and share is increasingly driving  the medium’s growth.”

While several industries decreased their overall online ad spend year-over-year  in August, spending on the top social network sites increased across the board.  The Entertainment Industry led in growing its online ad dollars, increasing ad  spending on the top social network sites by 812% in August.

Year-over-Year% Change in Online Advertising Spend by Industry (U.S., August 2009)

Estimated $ on Top Social Network Sites

YOY% Growth

Industry Aug-08 Aug-09 On Social  Networks On All  Sites
Entertainment

$1,097,700

$10,012,800

812%

40%

Travel

$473,700

$2,198,200

364%

-11%

Business to Business

$683,400

$1,941,700

184%

-8%

Automotive

$1,110,200

$3,085,800

178%

-26%

Health

$1,131,500

$2,754,900

143%

8%

Web Media

$11,231,800

$26,855,700

139%

30%

Software

$526,400

$1,202,500

128%

-29%

Financial Services

$3,233,900

$6,415,900

98%

-10%

Public Services

$6,836,500

$13,203,100

93%

13%

Telecommunications

$12,449,500

$23,550,300

89%

-1%

Consumer Goods

$1,913,400

$3,349,200

75%

8%

Hardware & Electronics

$654,000

$1,022,900

56%

-47%

Retail Goods & Services

$8,101,400

$12,556,800

55%

-12%

Source: Nielsen AdRelevance

Gibs continues, “… the considerable increases we’ve seen in ad spending over the past  year suggest that… advertisers want to connect with core fan bases such as movie  studios, (and) are allocating more and more dollars to online communities like Facebook  and MySpace… ”

In August 2009, Facebook was the No. 1 social networking  site advertised on by 10 of the 13 industries when ranked by display ad impressions,  while Myspace.com led in the other three industries:

Top US Social Networking Sites For Advertising By Industry (Ranked by Display Ad Impressions for August 2009)
Industry

Social Networking Site

Automotive

Facebook

Business to Business

Facebook

Consumer Goods

Facebook

Entertainment

MySpace

Financial Services

MySpace

Hardware & Electronics

MySpace

Health

Facebook

Public Services

Facebook

Retail Goods & Services

Facebook

Software

Facebook

Telecommunications

Facebook

Travel

Facebook

Web Media

Facebook

Source: Nielsen AdRelevance

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