Social networks display substantial annual growth trends
According to the report, consumer activity on social networking and blogging sites comprised 17% of all time spent on the Internet in August 2009, up from just 6% a year ago. At the same time, advertising spend on these sites grew 119%, from an estimated US$49 million in August 2008 to US$108 million last month. As a percentage of total online ad spend in the US, these ad expenditures on social networking sites climbed from 7% to 15% year on year.
Not surprisingly, Facebook is the big winner from this growth, as recently reported, and as well as the number of users growing substantially, the time spent on the site has also increased, with the average user now spending 5 hours and 46 minutes per month on the site, up from 1 hour and 40 minutes a year ago. As a result, Facebook has reportedly seen a significant growth in ad impressions, accounting for a 14.7% share of US display advertising views last month, up from just 1.8% in January this year.
According to Nielsen, the spend by industry sector on the top social network sites has increased in all areas, with the entertainment industry showing the biggest annual increase, up by 812%, and travel advertising increasing spend by 364%.