Social Network Spending to Increase

Categories: Social Networking, Web Industry, White Label Social NetworkPosted on May 5th, 2008

Social Networks continue to show a strong future of growth.

Two recent Forrester reports published by my colleagues, Josh Bernoff and Oliver Young, both showing the future of social computing for the interactive marketer and for enterprise 2.0 purchasing. A very obvious trend for both of these reports is the growth of budgets by marketers and companies for social networks.

I’m not releasing any new information here, but just highlighting the public data that they both point out:

Social technology marketers bullish in face of recession

We polled interactive marketers with the following question: “Assuming that the economy is in a recession in the next six months, how would you change your Investments in the following marketing channels?” Over 40% of them indicated that they will increase spending on social networks even in face of a recession during the next 6 months.

Josh writes: “Social networks will get the largest number of increases, over 40% of those using it, along with user-generated content, blogs, and that old standby, email marketing.”

Forecast: Global Enterprise Web 2.0 Spend By Technology, 2007 To 2013

In Oliver Young’s report on Global Enterprise Web 2.0 Market Forecast: 2007 To 2013, or read the blog post, and the graph has been published on Read Write Web and ZDnet, Enterprise spending of social computing software (internal and external) his report provided some clear forecasts demonstrating that purchasing in social networking software (like this white label list) will increase, and take the largest segment of the budget.

Your internal discussion
You should forward these stats to the web strategy teams within your company, and start a discussion answering each of the following questions:

Is your organization of what social networks are (believe me, many aren’t)?

Are you aware of why social networks are so important (talk about trust)?

Is your marketplace using social networks? if so, which ones?

What are you competitors or others in your industry going?

What are people doing in social networking sites in our marketplace?

That’s just the exploratory questions you’ll need to answer, there’s a much large discussion you’ll need to have, after the awareness questions are answered.

I’ve published quite a few posts on social networks, view archives.

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This entry was posted on Monday, May 5th, 2008 at 6:03 am and is filed under Social Networking, Web Industry, White Label Social Network. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

[...] Social Network Spending to Increase Social Network Spending to Increase [...]

Posted by etc… :: Social Network Spending to Increase on May 5th, 2008 at 6:58 am

[...] we enter a recession, marketers plan to increase spending on social networks while reduce spending on display [...]

Posted by Pilgrim’s Picks for May 5 - Cinco de Mayo Edition on May 5th, 2008 at 7:23 am

Those questions you pose are of utmost importance. In times of economic slowdown, budget cutters look to marketing first. And many senior marketing decision makers go for the things they don’t quite relate to, that they may not either be influenced by or things they don’t perceived that they’re influenced by.

Posted by Jonathan Trenn on May 5th, 2008 at 8:40 am

[...] of social media tool’s productivity enhancement effect on the enterprise. (A list of questions for discussion, and the projected increase in spend on social [...]

Posted by Joe Budde Jr. » How do you Implement an Internal Social Network? on May 5th, 2008 at 10:33 am

Not sure what to think of the fact that “PR” was notable by its absence from the list of options.

I think that that is a good thing: so much of PR’s work is now intrinsic to socnets.

Posted by Todd Defren on May 5th, 2008 at 12:49 pm

This is a great article! Thanks for sharing! We have experienced huge growth as well! Good times to be in Social Networking space, but niche social networks are more attractive for marketers as they can target specific demographics. For us it is mostly new parents.

Thanks!

Posted by James from Babyspot.com on May 5th, 2008 at 2:37 pm

Todd

PR spending would be found in a different survey, this one was just focused on the adoption and likelihood of adoption for tools.

Posted by jeremiah_owyang on May 5th, 2008 at 3:29 pm

[...] immagini prese nel blog di Jeremiah, mostrano le prossime evoluzioni di spesa nei differenti media digitali descritte nel rapporto [...]

Posted by Gli investimenti nel digitale e la recessione | WoMarketing on May 6th, 2008 at 3:19 am

I think Todd’s comment was interesting as I am in PR and consider all of the things mentioned in the post, including social networking, a part of the tools we use.

Thanks for including the internal discussion list Jeremiah, very helpful.

Posted by Kelly Krebs on May 7th, 2008 at 2:55 pm

[...] Social Network Spending to Increase Jeremiah Owyang/Web Strategy by Jeremiah Social Networks continue to show a strong future of growth. Two recent Forrester reports published by my colleagues, Josh Bernoff and Oliver Young, both showing the future of social computing for the interactive marketer and for enterprise 2.0 purchasing. A very obvious trend for both of these reports is the growth of budgets by marketers and companies for social networks. [...]

Posted by Web 2.0: Going, Going, Strong « Analyst Views Weekly on May 8th, 2008 at 8:11 am

[...] Social Network Spending to Increase - Interesting statistics about the growth of social network spending based upon a Forrester Research report. [...]

Posted by Bookmarks for May 9th | Acan Media on May 9th, 2008 at 1:26 pm

[...] Jeremiah Owyang discusses social networks on his Web Strategy Blog. According to a Forrester Research study, even with the impending recession, online marketers plan to continue to increase spending on social networking efforts. According to the online marketing channels spend chart presented, interactive marketers would spend most of their budget on social network projects. [...]

Posted by Social Networks in for the Long Haul | Spinfield: Web marketing trends today, tomorrow, and beyond... on May 27th, 2008 at 7:17 pm

[...] In fact, 40 percent of companies are set to increase spending on social networks next year (Forrester Research). 78 percent of marketers are using blogs, 63 percent use video, and 56 percent use social networks [...]

Posted by eBranding Becomes Mandatory for Surviving the Digital Age « Personal Branding Blog - Dan Schawbel on June 30th, 2008 at 4:10 am

[...] (US) Social Networks continue to show a strong future of growth. Two recent Forrester reports published by my colleagues, Josh Bernoff and Oliver Young, both showing the future of social computing for the interactive marketer and for enterprise 2.0 purchasing. “Social networks will get the largest number of increases, over 40% of those using it, along with user-generated content, blogs, and that old standby, email marketing.” May 05th, 2008 From: http://www.web-strategist.com/blog/2008/05/05/social-network-spending-to-increase/ [...]

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