E marketer worldwide_social_network_ad_spending_forecast-robust_growth_set_to_continue_through_2014

Copyright ©2012 eMarketer, Inc. All rights reserved.
Worldwide Social Network Ad Spending 2
North America 6
Western Europe 8
Eastern Europe 9
Asia-Pacific 10
Latin America 12
Middle East and Africa 13
Conclusions 14
Appendix: Worldwide Social Network
Ad Spending Forecast Methodology 14
Related eMarketer Reports 15
December 2012
Executive Summary: Worldwide social network ad spending is expected to reach nearly $9 billion in 2013, a 33%
increase over 2012. While Facebook will maintain a significant share of the 2013 total ($5.48 billion), that leaves
$3.5 billion to be spent on fast-rising Twitter, Chinese social networks, social games, LinkedIn and other sites.
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In our first-ever regional breakdown, North America leads with
a 49.7% share of worldwide social network ad spending in 2012,
followed by Western Europe, at 24.6%. However, Asia-Pacific
will surpass Western Europe in share next year, an indication of
both the strong inroads that Facebook is making in the region
as well the improved monetization strategies of Chinese and
other Asian social networks.
When it comes to Facebook, international revenues are
coming on fast. The US will have a 51% share of Facebook ad
revenues in 2012, but will fall to 49% in 2013. eMarketer expects
Facebook to draw $5.48 billion in ad revenues in 2013 and reach
$6.8 billion in 2014.
Twitter’s worldwide ad revenue will see substantial increases
in 2013, rising 89% to $545 million. As the company rolls out ad
products in international markets and expands its self-serve
ad platform, Twitter will take an increasing share of worldwide
social network ad spending.
This report highlights eMarketer’s forecast for social network ad
spending around the world. The projections, which run through
2014, cover North America, Asia-Pacific, Western Europe,
Eastern Europe, Latin America, and the Middle East and Africa,
including further details and breakouts for the US, Canada, the
UK and China.
billions and % change
Social Network Ad Spending Worldwide, 2010-2014
2010
$3.70
55.2%
2011
$5.12
38.5%
2012
$6.71
31.0%
2013
$8.93
33.1%
2014
$10.93
22.4%
Social network ad spending % change
Note: includes paid advertising appearing within social network sites, social
network games and social network applications; excludes spending by
marketers that goes toward developing or maintaining a social network
presence
Source: eMarketer, Sep 2012; conﬁrmed and republished, Nov 2012
144536 www.eMarketer.com
Alison McCarthy
amccarthy@emarketer.com
Debra Aho Williamson
dwilliamson@emarketer.com
Contributors
Monica Peart, Martín Utreras, Haixia Wang
Worldwide Social Network
Ad Spending Forecast:
Robust Growth Set to Continue
Through 2014

Worldwide Social Network Ad Spending Forecast: Robust Growth Set to Continue Through 2014 Copyright ©2012 eMarketer, Inc. All rights reserved. 2
Worldwide Social Network
Ad Spending
Worldwide social network advertising spending is
expected to reach nearly $9 billion in 2013, up 33%
over 2012’s expected total of $6.71 billion. By 2014, ad
spending on social networks will approach the
$11 billion mark.
Social Network Ad Spending Worldwide, 2010-2014
2010
$3.70
55.2%
2011
$5.12
38.5%
2012
$6.71
31.0%
2013
$8.93
33.1%
2014
$10.93
22.4%
Social network ad spending % change
Note: includes paid advertising appearing within social network sites, social
network games and social network applications; excludes spending by
marketers that goes toward developing or maintaining a social network
presence
Source: eMarketer, Sep 2012; confirmed and republished, Nov 2012
144536
2012 has been a year of intense scrutiny of the social network
advertising business, primarily because Facebook’s ad
revenues have not grown as rapidly as expected. eMarketer’s
current forecast for social network ad spending in 2012 is
$1 billion lower than our forecast published in February 2012,
mainly due to the Facebook slowdown.
But social networking is an activity that is gaining strength
around the world. eMarketer forecasts that there will be
1.63 billion monthly users in 2013, representing nearly one in
four people across the globe. Marketers will continue to invest
ad dollars to reach these people.
In Asia-Pacific, for example, marketers are making more serious
efforts to reach a growing social network user population.
Chinese social network Sina Weibo is seeing initial signs of
strong monetization as advertisers begin to engage with the
microblogging service’s 300 million-plus registered users.
Meanwhile,Twitter is flourishing in the UK,Japan and Brazil,and
the company is expanding its international advertising sales efforts,
allowing marketers new opportunities to reach its user base.
Among world regions, North America will claim the lion’s
share of social network ad expenditures, at $4.36 billion in
2013. North America’s share will be more than double that
of Asia-Pacific, the region that will have the second-highest
amount spent on social network advertising next year. North
America’s strong position among world regions is reflective of
the hold that social networking has on the populations of the
US and Canada and the fact that US businesses commonly
incorporate social network advertising into their budgets.
millions
Social Network Ad Spending Worldwide, by Region,
2010-2014
North America
Western Europe
Asia-Pacific
Eastern Europe
Latin America
Middle East & Africa
Worldwide
2010
$2,040.8
$1,013.8
$530.6
$61.6
$45.6
$4.3
$3,696.6
2011
$2,593.1
$1,302.6
$994.8
$119.3
$97.5
$11.3
$5,118.6
2012
$3,332.5
$1,648.3
$1,381.6
$167.8
$156.7
$21.0
$6,707.8
2013
$4,356.6
$1,990.9
$2,048.0
$250.0
$244.6
$37.1
$8,927.2
2014
$5,346.0
$2,280.4
$2,586.0
$307.7
$339.7
$68.5
$10,928.3
Note: includes display, search, video and other forms of paid advertising
appearing within social networks, social games and social applications;
excludes spending by marketers that goes toward developing or
maintaining social network profile pages or branded applications; numbers
may not add up to total due to rounding
Source: eMarketer, Nov 2012
147493
The Middle East and Africa will experience the fastest growth
throughout the forecast period, though investments will remain
extremely low compared to the other regions. Latin America and
Eastern Europe will also see higher-than-average growth.
% change
Social Network Ad Spending Growth Worldwide, by
Region, 2010-2014
2010 2011 2012 2013 2014
Middle East & Africa 287.6% 163.2% 84.9% 76.9% 84.7%
Latin America 179.8% 114.1% 60.7% 56.1% 38.9%
Eastern Europe 92.4% 93.8% 40.6% 49.0% 23.1%
Asia-Pacific 99.3% 87.5% 38.9% 48.2% 26.3%
North America 37.2% 27.1% 28.5% 30.7% 22.7%
Western Europe 75.1% 28.5% 26.5% 20.8% 14.5%
Worldwide 55.2% 38.5% 31.0% 33.1% 22.4%
maintaining social network profile pages or branded applications
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Social network ad spending in North America will lose
some share to other regions during the forecast period,
but eMarketer expects that it will continue to account for
almost half of the global total through 2014. Asia-Pacific will
see its share increase from 20.6% in 2012 to 23.7% in 2014,
surpassing that of Western Europe. This will primarily be a
result of Facebook’s increased monetization efforts in the
region, but also a reflection that advertisers in China (where
Facebook does not have a presence) are starting to spend
more on advertising via local social networks.

% of total
Social Network Ad Spending Share Worldwide, by
Region, 2010-2014
2010 2011 2012 2013 2014
North America 55.2% 50.7% 49.7% 48.8% 48.9%
Western Europe 27.4% 25.4% 24.6% 22.3% 20.9%
Asia-Paciﬁc 14.4% 19.4% 20.6% 22.9% 23.7%
Eastern Europe 1.7% 2.3% 2.5% 2.8% 2.8%
Latin America 1.2% 1.9% 2.3% 2.7% 3.1%
may not add up to 100% due to rounding
147561
eMarketer expects social network ad spending to account for
7.3% of worldwide digital ad spending in 2013. Spending in North
America will remain higher than worldwide average due to the
more mature monetization efforts in the US, while marketers in
the Middle East and Africa, an immature market, will concentrate
very little of their digital ad spending on social network sites—
only 3% expected in 2013.
eMarketer measures digital ad spending based on the location
of the advertiser. Because there is a higher concentration of
advertisers in the US, many of which put greater efforts into social
network advertising, the US (and North America) are more heavily
weighted than other regions, adding to the disparity in revenue.
% of digital ad spending
Social Network Ad Spending Worldwide, by Region,
2010-2014
2010 2011 2012 2013 2014
North America 7.1% 7.5% 8.3% 9.5% 10.4%
Western Europe 4.6% 5.2% 6.0% 6.5% 6.8%
Asia-Paciﬁc 3.0% 4.6% 5.1% 6.3% 6.9%
Eastern Europe 2.9% 4.1% 4.8% 6.1% 6.5%
Latin America 2.5% 4.0% 4.6% 5.9% 6.4%
Worldwide 5.1% 5.8% 6.4% 7.3% 7.8%
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Facebook will take 63% of the worldwide social network ad
spending pie in 2012, dipping slightly to 61.4% in 2013 as
LinkedIn and Twitter grow their shares. Twitter will see the
biggest jump in worldwide social network ad revenue share,
rising from 4.3% in 2012 to 7.4% in 2014.
Facebook will rebound slightly in 2014 as the combined
share of smaller social networks falls somewhat. But, overall,
Facebook’s share of the market has remained relatively
constant since 2011. If the company were to start operating in
China, its share might rise again—and substantially.
% of total
Social Network Ad Spending Share Worldwide,
by Venue, 2010-2014
2010 2011 2012 2013 2014
Facebook 50.7% 61.6% 63.1% 61.4%
Social games 7.5% 7.6% 8.1% 7.8%
Twitter 1.2% 2.7% 4.3% 6.1%
LinkedIn 2.1% 3.0% 3.9% 4.3%
Myspace* 7.2% 0.9% - -
Other 31.1% 24.1% 20.7% 20.5%
62.3%
7.5%
7.4%
4.7%
-
18.1%
may not add up to 100% due to rounding; *effective in 2012, Myspace will
no longer be included in eMarketer's forecast
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Facebook Ad Revenues Worldwide
While internet users in the US fueled Facebook’s meteoric rise,
foreign expansion is driving the company’s growth, both in users
and in revenue. eMarketer expects Facebook to draw $5.48 billion
in worldwide ad revenues in 2013 and pull in $6.8 billion in 2014.
Facebook Ad Revenues Worldwide, 2010-2014
2010
$1.88
146.3%
2011
$3.15
68.2%
2012
$4.23
34.1%
2013
$5.48
29.5%
2014
$6.81
24.2%
Facebook ad revenues % change
Note: paid advertising only; excludes spending by marketers that goes
toward developing or maintaining a Facebook presence
Source: eMarketer, Sep 2012
144542
eMarketer has lowered its expectations for Facebook worldwide
ad revenues in 2012 from its February 2012 estimate after the
company underperformed market expectations in both Q1 and
Q2. eMarketer now expects that ad revenue will grow 34% in
2012, compared with the earlier prediction of 60.5%.
In the first nine months of 2012, Facebook’s ad revenue grew
33%, according to the company’s Q3 2012 earnings report.
The US will represent 51% of Facebook ad revenue in 2012,
but its share is expected to fall to 49% in 2013 and 47% in
2014, eMarketer forecasts. Much of Facebook’s user growth
is happening outside the US; in Q3 2012, the primary sources
Worldwide Social Network Ad Spending

of new growth were Brazil, India and Japan, Facebook said.
However, Facebook faces challenges in monetizing these
users, particularly those in developing markets who may be of
lower value to marketers.
In the first nine months of 2012, 51% of Facebook’s total revenue,
including both ads and payments, came from companies based
in the US, the company said in its Q3 2012 earnings report.
(Facebook does not break out the percentage of ad revenue that
comes from companies in the US, but eMarketer’s assumption is
that the total revenue split and the ad revenue split are similar.)
Ads will continue to diminish as a portion of Facebook’s total
revenue, but the rate of decline is slowing. Advertising fell
from 95% of revenue in 2010 to 85% in 2011, according to
eMarketer. In 2012, ads will account for an estimated 83.9% of
total revenue. Facebook Payments revenue growth is slowing,
mainly because social gaming company Zynga, the primary
source of Payments revenue, has faced its own challenges. In
Q3 2012, Facebook reported that Zynga accounted for 7% of
Facebook’s total revenue, down from 12% in Q3 2011.
millions and % of total
Facebook Revenues Worldwide, by Source, 2009-2013
Advertising*
Facebook Payments and
other revenue
Total
Advertising % of total
2009
$761
$16
$777
98.0%
2010
$1,875
$99
$1,974
95.0%
2011
$3,154
$557
$3,711
85.0%
2012
$4,232
$811
$5,042
83.9%
2013
$5,478
$1,122
$6,600
83.0%
Note: numbers may not add up to total due to rounding; *paid advertising
only; excludes spending by marketers that goes toward developing or
maintaining a Facebook presence
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Twitter Ad Revenues Worldwide
Twitter will generate more than $545 million in worldwide ad
revenue in 2013,up 89% from 2012’s expected total of $288 million.
eMarketer predicts that by 2014Twitter ad revenues will surpass
the $800 million mark.
millions and % change
Twitter Ad Revenues Worldwide, 2010-2014
2010
$44.6
2011
$139.5
213.1%
2012
$288.3
106.7%
2013
$545.2
89.1%
2014
$807.5
48.1%
Twitter ad revenues % change
toward developing or maintaining a Twitter presence
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Twitter’s ad revenue for 2012 has grown faster than eMarketer’s
earlier expectations and so our forecast has been revised upward
from the February 2012 estimate of $260 million.
This year, the company has steadily grown its monetization
efforts, adding new features to its ad products and expanding
sales efforts in international markets, which now make up 70%
of Twitter’s reported user base. Key revenue drivers for the
company in 2013 and beyond include:
■■ The rollout of Twitter’s self-serve advertising platform, aimed
at small and midsize businesses
■■ The launch of a Twitter Ads API, expected in late 2012 or
early 2013
■■ Increased focus on selling ads in international markets,
including Japan, the UK and Brazil
■■ Better forms of ad targeting, including messages aimed at
specific mobile devices, user geographies and interests
eMarketer forecasts that 90% of Twitter’s ad revenues will
come from the US in 2012, but that percentage is expected to
fall to 83% in 2013 and 79% in 2014, as Twitter’s international
ad sales pick up steam.
LinkedIn Ad Revenues Worldwide
Advertising is a significant contributor to LinkedIn’s business,
but the company also has strong revenue streams from
recruitment and premium subscription products, which make
it less dependent on ads than Facebook or Twitter.
As a result, LinkedIn has focused less on innovating new
types of advertising and more on building tools for marketers
to reach its business-oriented audience, such as branded
communities, targeted status updates and sponsorships.

LinkedIn’s worldwide ad revenue will reach $381 million in 2013,
up 46.2% from 2012.Ad revenues have grown faster in 2012
than earlier predicted, and eMarketer has revised its forecast
upward for the year to $260 million, from the $226 million
forecast in February 2012.
millions and % change
LinkedIn Ad Revenues Worldwide, 2010-2014
2010
$79.2
106.8%
2011
$155.9
96.8%
2012
$260.7
67.2%
2013
$381.1
46.2%
2014
$513.1
34.6%
LinkedIn ad revenues % change
Note: ﬁgures represent revenue from LinkedIn's Marketing Solutions
business segment
144548
For the year through Q3 2012, LinkedIn had $175.1 million in
ad revenue, representing 26% of total revenues in the period.
eMarketer estimates that 64% of LinkedIn’s ad revenue will
come from the US in 2012, falling to 60% in 2014.
Social Game Ad Spending Worldwide
eMarketer expects that worldwide social gaming ad spending
will rise 28.6% in 2013 to $695 million and reach $824 million
in 2014. Non-US markets will account for 59% of social game
spending next year.
millions
Social Game Ad Spending, US vs. Non-US, 2010-2014
2010
$111.6
$167.4
$278.9
2011
$135.4
$251.5
$387.0
2012
$210.9
$329.9
$540.8
2013
$285.1
$410.2
$695.3
2014
$371.0
$453.4
$824.4
US Non-US
toward developing or maintaining branded social games; numbers may not
add up to total due to rounding
144551
Zynga, the most widely known social game company, has
struggled in 2012, as its new games have not taken off and users
have started to spend less money buying virtual items within
games. However, advertising revenue is becoming more robust,
propping up the company’s fortunes. Zynga’s ad revenue reached
$100.2 million in the first nine months of 2012, up 113% from
$47.1 million in the first nine months of 2011.
Zynga is just one company in the social game space, however,
and consumer interest in social gaming remains relatively high
in international markets, particularly in Asia-Pacific.
In Japan, for example, mobile social game network Gree has
had steady growth in ad sales and has teamed up with a
French mobile ad company to expand its mobile ad business.
Gree also launched a global platform, expanding the reach
of its games to 169 countries, including the US. Other mobile
game companies in Asia-Pacific are seeking to expand their
games into the US, too, with the intention of earning revenue
from both virtual goods and advertising.

North America
Given that Facebook, Twitter and LinkedIn all
started in the US, it is not surprising that North
America accounts for such a large percentage of
the worldwide social network ad market. Spending
in North America is expected to reach $3.3 billion in
2012 and rise 30.7% to $4.4 billion in 2013.
The percentage of digital ad budgets going toward social
networks will reach 9.5% next year, up from 8.3% in 2012, as
advertisers fund campaigns to connect with audiences through
social networks on both desktop and mobile platforms.
billions, % change and % of digital ad spending
Social Network Ad Spending in North America,
2010-2014
2010
$2.04
37.2%
7.1%
2011
$2.59
27.1%
7.5%
2012
$3.33
28.5%
8.3%
2013
$4.36
30.7%
9.5%
2014
$5.35
22.7%
10.4%
Social network ad spending
% change % of digital ad spending
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With nearly 175 million social network users this year, North
America provides advertisers with the third-largest regional
audience after Asia-Pacific and Latin America. Marketers
in North America will spend nearly $24 on social network
advertising per social network user in 2013, an amount much
higher than in other regions.
Social Network Ad Spending per Social Network User
in North America, 2010-2014
2010
$13.63
16.0%
2011
$15.82
16.0%
2012
$19.08
20.6%
2013
$23.95
25.6%
2014
$28.26
18.0%
% change
Social network ad spending per social network user
147570
US
As the world’s largest advertising market and home base for
Facebook, the US dominates social network ad spending.
Spending will surpass the $4 billion mark by the end of 2013
and climb to more than $5 billion in 2014.
Facebook is the key player, accounting for 68.8% of all social
network revenues in the US in 2012.
Growth in 2013 will be slightly higher than in 2012, as Facebook
and Twitter expand their mobile advertising businesses and as
new products, such as the Facebook Exchange real-time bidding
platform and Twitter’s self-serve ad platform, expand.
eMarketer predicts social networks will account for 9.6% of total
digital ad spending in the US in 2013, rising to 10.5% in 2014.
Social network ad spending per social network user will reach
nearly $20 in 2012 and then grow more than 25% to nearly $25
per user in 2013.

US Social Network Ad Spending per Social
Network User, 2010-2014
2010
$14.31
2011
$16.55
2012
$19.88
2013
$24.92
2014
$29.50
% change
14.5% 15.7%
20.1%
25.4%
18.4%
147582
For more on social network ad revenues in the US,
including additional forecasts for Facebook, Twitter,
LinkedIn and social games, see eMarketer’s October 2012
report, “US Ad Spending Forecast: Fall 2012 Update.”
Canada
eMarketer predicts that two-thirds of Canada’s internet users,
or 17.7 million people, will use social networks in 2013. That
year, marketers will spend $264 million on advertising to these
users. Spending has risen steadily since 2011 and percentage
gains are expected to reach 35% in 2013.
At 8.2% in 2013, social network ad spending as a percentage
of total digital ad spending is slightly lower in Canada than
in the US, most likely because consumers in Canada are
somewhat less apt than US consumers to visit social networks.
However, social networks’ share of ad spending is growing
and will reach 8.9% in 2014.
millions, % change and % of digital ad spending
Social Network Ad Spending in Canada, 2010-2014
2010
$115.0
52.4%
5.1%
2011
$146.9
27.8%
5.6%
2012
$195.8
33.2%
6.7%
2013
$264.3
35.0%
8.2%
2014
$310.1
17.3%
8.9%
147595
Marketers will spend $14.95 on social network advertising per
social network user in 2013, a gain of 29% over 2012’s figure.
However, growth will taper off in 2014, when social network
ad spending per user is expected to reach $16.80—only
12% higher than 2013’s total. The amount spent per user will
be substantially lower than in the US, where advertisers are
expected to shell out $29.50 per user in 2014.
in Canada, 2010-2014
2010
$7.61
37.1%
2011
$9.10
19.7%
2012
$11.58
27.2%
2013
$14.95
29.1%
2014
$16.80
12.4%
% change
147596
North America

Western Europe
With a social network user base expected to total
158.8 million in 2013,Western Europe has a
sophisticated audience that marketers have paid a fair
amount of attention to. Facebook is the most popular
social network in the region, visited by nearly 83% of
Western Europe’s social network users in 2012, and
many advertisers have established a presence on the
site to engage with these consumers.
Social network ad expenditures in Western Europe will near the
$2 billion mark next year, according to eMarketer estimates.The
majority of this spending will come from the UK and Germany,
which have the largest social network user populations in
Western Europe. Growth in the region has slowed since 2010,
and will continue to taper throughout the forecast period, but will
remain in the double digits through 2014.
Social networks’ share of total digital ad spending in Western
Europe is expanding, but at a slower pace relative to North
America. eMarketer expects social network ad spending to
account for 6% of Western Europe’s total digital ad spending
this year. By the end of 2014, that share will have risen by only
an eighth of a percentage point. eMarketer believes that there
will be no major shifts from other ad formats to social network
advertising through 2014.
Social Network Ad Spending in Western Europe,
2010-2014
2010
$1,013.8
75.1%
4.6%
2011
$1,302.6
28.5%
5.2%
2012
$1,648.3
26.5%
6.0%
2013
$1,990.9
20.8%
6.5%
2014
$2,280.4
14.5%
6.8%
147566
Social network ad spending per social network user in
Western Europe will come in at $12.54 in 2013, according to
eMarketer forecasts, 10% higher than 2012’s spend of $11.39.
Marketers in Germany and the UK will spend more per user
than those in France, Italy and Spain and will help raise the
regional average.
in Western Europe, 2010-2014
2010
$9.25
37.7%
2011
$10.07
8.8%
2012
$11.39
13.1%
2013
$12.54
10.1%
2014
$13.41
7.0%
% change
147568
UK
The UK has the largest population of Facebook users in
Western Europe and the second-largest social network
audience in the region after Germany. UK social network users
are known to be a highly engaged group, yet UK advertisers
have been somewhat slower than those in the US to gravitate
toward social networks.
eMarketer expects marketers in the UK to invest $646 million
in social network advertising in 2013, compared to $4 billion
in the US. In the UK, 6.7% of total digital ad spending will go
toward social networks next year, compared to 9.6% in the US.

UK Social Network Ad Spending, 2010-2014
2010
$343.6
58.3%
5.2%
2011
$463.0
34.7%
6.0%
2012
$553.1
19.5%
6.3%
2013
$646.4
16.9%
6.7%
2014
$738.6
14.3%
6.9%
147577
The UK does parallel the US in social network ad spending per
social network user, as the two countries have similar social
ad cost per thousands (CPMs) and are monetizing at a similar
rate. eMarketer predicts that advertisers will spend $23.30 on
each social network user in the UK in 2013, just $1.60 less than
the average amount spent in the US.
UK Social Network Ad Spending per Social
Network User, 2010-2014
2010
$15.78
37.7%
2011
$19.34
2012
$21.37
2013
$23.34
2014
$25.17
7.8%
Note: ﬁgures include display, video, search and other forms of paid
advertising appearing within social networks, social games and social
applications; does not include spending by marketers that goes toward
developing or maintaining social network proﬁle pages or branded
applications
% change
22.6%
10.5%9.2%
147578
Eastern Europe
Social network advertising in Eastern Europe is still in a
nascent stage, but is growing at a fast pace. eMarketer
expects spending will nearly double between 2012 and
2014, from $167.8 million to $307.7 million.
As spending grows, social network advertising will become a
bigger piece of the digital ad spending pie, making up 6.5% of
the region’s total in 2014, up from 4.8% this year.
Social Network Ad Spending in Eastern Europe,
2010-2014
2010
$61.6
92.4%
2.9%
2011
$119.3
93.8%
4.1%
2012
$167.8
40.6%
4.8%
2013
$250.0
49.0%
6.1%
2014
$307.7
23.1%
6.5%
147573
With more than 40 million users, the social network VKontakte
maintains a stronghold in Eastern Europe and Russia.
VKontakte (also known simply as VK) not only adopts and
adjusts Facebook’s functionalities to appeal to the Eastern
European audience, but offers users a much greater span of
content options within the site, such as the ability to watch
movies or listen to full albums.
But Facebook is expanding rapidly in the region. eMarketer
estimates that more than half of all social network users in
Eastern Europe will be Facebook users by the end of 2012,
a tally that should rise to 62% by 2014. Russia, with 51.8
million social network users in 2012, is the sixth-largest social
networking country in the world this year, though it has much
lower Facebook penetration than Eastern Europe as a whole.
Despite the increasing presence of social networks in Eastern
Europe, ad spending per social network user is very low.
Local social networks in Eastern Europe do not monetize
users on the same level as Facebook or Twitter. Lower wages
Western Europe

among the general population have affected spending as well,
causing lessening demand for goods and services. eMarketer
expects that in 2012, marketers will spend just $1.15 on
advertising per social network user.
in Eastern Europe, 2010-2014
2010
$0.54
57.5%
2011
$0.92
68.6%
2012
$1.15
25.5%
2013
$1.53
32.4%
2014
$1.71
12.4%
% change
147574
Asia-Pacific
The Asia-Pacific region has a massive social network
user base and a broad landscape of social networks
for marketers to work with. From social sites such
as Tencent Qzone and Sina Weibo in China to the
increasing popularity of Facebook and Twitter in
countries like Japan, India and Indonesia, the options
are extensive.
Social network ad spending in Asia-Pacific is set to increase
48% in 2013 and pass the $2 billion mark, to become the
region with the second-highest total that year. Japan and
China, which have more sophisticated social network
economies than other countries in the region, are helping to
drive Asia-Pacific’s growth. Marketers there want to reach
consumers who have shown a strong propensity to interact
with brands on social media sites. According to a Q2 2012
InSites Consulting study, 66% of social network users in China
and 56% of those in Japan followed a brand on a social media
site—both greater than the US’s 53%.
Social network ad spending will account for just over 6% of
total digital ad spending in Asia-Pacific in 2013.
Social Network Ad Spending in Asia-Paciﬁc, 2010-2014
2010
$530.6
99.3%
3.0%
2011
$994.8
87.5%
4.6%
2012
$1,381.6
38.9%
5.1%
2013
$2,048.0
48.2%
6.3%
2014
$2,586.0
26.3%
6.9%
147564
Spending per user is quite low in the region, attributable to
the enormous user base of 616 million, as well as the fact
that some Asia-Pacific countries, such as India and Indonesia,
have immature digital advertising economies. Spending per
user will be much higher in countries with more developed
monetization platforms in place, such as Australia and Japan.
Eastern Europe

in Asia-Paciﬁc, 2010-2014
2010
$1.37
52.5%
2011
$2.02
47.1%
2012
$2.24
11.3%
2013
$2.75
22.4%
2014
$3.03
10.3%
% change
147565
China
China is the world’s largest social networking market, with
307.5 million users in 2012, nearly double the US user base.
Neither Facebook nor Twitter has an official presence there,
though, leaving marketers’ advertising spend to collect
among homegrown networks such as Sina Weibo, Renren and
Tencent’s various social platforms.
Marketers in China will spend $612.8 million on social network
advertising in 2013, or 6.4% of total digital ad spending in the
country. The market will experience rapid growth throughout
the forecast period, including a 51.3% gain next year.
Social Network Ad Spending in China, 2010-2014
2010
$148.0
128.4%
4.0%
2011
$233.1
57.5%
4.4%
2012
$405.1
73.8%
5.5%
2013
$612.8
51.3%
6.4%
2014
$789.5
28.8%
6.5%
147597
Unlike in the US, where Facebook is the dominant player, internet
users in China tend to join multiple social networks, affording
marketers more options to reach consumers.According to InSites
Consulting, 53% of social network users in China use three or
more such sites, compared to 33% in the US.
Social network ad spending per user is quite low in China.
eMarketer predicts that in 2013, marketers in China will only
spend $1.67 on each social network user.Though this is a fraction
of what is spent per user in other markets, China has so many
social network users that it adds up to significant total revenue.
in China, 2010-2014
2010
$0.71
71.5%
2011
$0.91
27.1%
2012
$1.32
44.9%
2013
$1.67
27.0%
2014
$1.90
13.8%
% change
147598
Asia-Pacific

Latin America
More than two out of three internet users in Latin
America are expected to be social network users in
2012, according to eMarketer estimates. Facebook is
the most popular, but Twitter and Google+ are rising,
especially in Brazil.
Although the region’s social network user population is
growing rapidly, Latin America is uneven in terms of internet
access. Many people access social networks via their
mobile phones, where social network advertising is not yet
ubiquitous. These reasons, combined with marketers’ reliance
on traditional advertising formats, have made marketers
in Latin America slow to engage users through social
network advertising.
With $245 million in social network ad spending in 2013, or
5.9% of the region’s total digital ad spending, Latin America
will remain second to last globally when it comes to social
spending, above only the Middle East and Africa. The market is
expected to grow 39% to reach $340 million in 2014.
Social Network Ad Spending in Latin America,
2010-2014
2010
$45.6
179.8%
2.5%
2011
$97.5
114.1%
4.0%
2012
$156.7
60.7%
4.6%
2013
$244.6
56.1%
5.9%
2014
$339.7
38.9%
6.4%
147571
eMarketer estimates that social network ad spending per
social network user will increase from $0.89 in 2012 to $1.51
in 2014, but this is an extremely low investment compared to
other regions.
in Latin America, 2010-2014
2010
$0.37
119.9%
2011
$0.66
77.2%
2012
$0.89
35.6%
2013
$1.21
36.3%
2014
$1.51
24.5%
% change
147572
One market that stands out in Latin America is Brazil. eMarketer
expects that advertisers in Brazil will spend much more on
social network advertising than in countries such as Argentina
and Mexico. Brazil’s social network audience is largely urban
and upwardly mobile, and the country is investing heavily in
tech infrastructure, all of which will contribute to a healthy social
network economy.

Middle East and Africa
The Middle East andAfrica,combined,have the lowest
social network ad spending among the major world
regions.eMarketer expects just $37 million to be spent in
2013,representing 3% of digital ad spending in the region.
Social Network Ad Spending in the Middle East &
Africa, 2010-2014
2010
$4.3
287.6%
1.1%
2011
$11.3
163.2%
1.9%
2012
$21.0
84.9%
2.4%
2013
$37.1
76.9%
2.9%
2014
$68.5
84.7%
3.9%
147575
Social network ad spending per social network user will be
just $0.20 next year.
in the Middle East & Africa, 2010-2014
2010
$0.05
179.8%
2011
$0.10
96.7%
2012
$0.14
40.3%
2013
$0.20
43.2%
2014
$0.33
59.5%
% change
147576
Although the ad dollars are low, social network usage in
the Middle East and Africa is quite high among web users.
eMarketer estimates that 181 million people in the region will
use a social network in 2013, representing three out of four
of its internet users. This strong penetration rate makes social
networks an ideal place for marketers to reach consumers.
Moreover, the Middle East and Africa have illustrated how
social networks can help people unite to create change and
influence offline behavior.
That said, internet access in the region is very limited outside
of urban centers, and many users access social networks
via mobile devices, where the advertising options are more
limited. However, with total digital ad spending forecast to rise
47.4% in 2013, to $1.24 billion, there is a chance that social
networks will siphon off some of that growth.

Conclusions
Ad spending on social networks will continue to
grow at a rapid pace. Social network users are only going
to increase in number. Marketers will continue to follow
social networkers as users connect with each other around
the world.
The majority of worldwide social network ad spending
will be invested in Facebook. However, Twitter, LinkedIn,
social games and other social networks will make up a large
portion of spending. Revenues will increase as these sites
bolster their international audiences.
Social network ad spending is markedly diverse among
the different regions. While North America leads in spending
and Western Europe and Asia-Pacific follow, marketers in Eastern
Europe, Latin America, and the Middle East and Africa still spend
very little on social network advertising.
North America will continue to account for the bulk of
worldwide social network ad spending through 2014.
Though the US will slowly lose share of Facebook,Twitter and
LinkedIn worldwide ad revenue throughout the forecast period as
international audiences grow, the region’s strong hold on social
network spending illustrates just how common social network
advertising has become for marketers in the US and Canada.
Asia-Pacific is making rapid advances in social
network advertising. Social network ad spending in the
region, driven by efforts in Japan and China, is set to surpass
Western Europe in 2013. China’s microblogging communities
in particular are beginning to make inroads at monetizing
their audiences.
Appendix: Worldwide Social
Network Ad Spending Forecast
Methodology
eMarketer forecasts regional social network ad spending
based on the geographic location of the advertiser.
By examining the reported revenues from major social
network companies, the long-term patterns of revenue
growth or loss, and viewing those figures through the lens of
current ad spending trends and marketers’ future intentions,
eMarketer is able to develop its projections.
Major players. We begin to estimate the size and growth
curve of the social network ad market by tracking the reported
revenues from Facebook and LinkedIn, which are public
companies. We also analyze revenue at Twitter, as well as
revenues at several dozen international social networks, social
game developers and social app companies.
Other research firms. Several researchers project social
network or social media ad revenues and/or revenues for
individual social network companies. eMarketer aggregates
these projections; the details behind how other researchers
come to their numbers help to inform eMarketer’s
forecasting process.
Other available data. We consider data on marketer usage,
consumer usage and incomes by region, ad impressions, and
ad pricing by region and country as part of our model.
Interviews with industry executives. We conduct
interviews with executives at ad agencies, marketers and
social networks to gain perspective on the development of the
social network advertising business as a whole, as well as the
revenues for individual companies.

Related eMarketer Reports
UK Digital Advertising: Spending and Trends
US Ad Spending Forecast: Fall 2012 Update
The Global Media Intelligence Report
Digital Ad Spending in Mexico: Advertising Giants
Finally Join the Pioneers
China Digital Media: Usage and Marketing Trends
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