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Facebook Tightens Its Hold on Advertisers

By STRATA June 29, 2015 | 9:45am

Facebook’s reach across the social media world is quite remarkable. Supporting this trend, the most recent STRATA Agency Survey also found that its use as an advertising medium by agencies has become almost universal. Our survey found that 97% of agencies plan on using Facebook in their ad campaigns, an all-time high for the survey and a 13% increase from a year earlier.

Other social media sites are not close to this level, but interest in advertising on social media platforms continues to grow across the board. YouTube was the second most popular social site used by STRATA agencies (65%), followed by Twitter (58%), while LinkedIn saw a 26% drop from 1Q14 to only 27% of agencies.

Agencies are spending more money on social media than ever before, according to the STRATA Agency Survey. Sixteen percent of agencies say they will allocate up to a quarter of their budgets on paid social, the largest percentage ever in the survey. In addition, 27% of agencies say they will allocate up to 10% to paid social. 

While paid social is seeing an uptick, social media ad exchanges are not seeing all of these ad dollars. Over half (52%) of agencies report they never use social media ad exchanges when purchasing social media ads. But the bigger news for social advertising is the recent announcement from Twitter CEO Dick Costolo that he will be stepping down. The market responded positively to this news, but the company will need to find better ways of reaching advertisers if it wants to close the gap between themselves and Facebook and YouTube.

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