CSUN On Point

In today’s digital age, businesses are using social media more and more to advertise their products.

A recent eMarketer study shows that $180 billion was spent on advertising last year, a five percent growth from 2004. Statistics show that digital advertising is leading the increase in ad spending, with spending for mobile networks in the lead.

Marketing analysts say the shift in ad spending has to do with what consumers are focused on, and the current focus for many consumers is social media. “Social media as a platform has been successful in reaching consumers and making connections,” said Dr. Kristen Walker, an associate professor in the CSUN Department of Marketing.

Marketing experts say the increase in digital advertising spending has to do with the increased amount of time consumers are spending on their mobile devices. eMarketer reports that adults in the US spend about two hours and 51 minutes on mobile devices each day.

“Google is already veering towards sites that are built for a mobile user,” said Apex Digital Media founder Dustin Peterson. “You’ll get a higher search ranking if you’re optimized for a user on their iPhone.”

Statistics show that Google accounts for about 45 percent of all digital advertising spending, but social media sites like Facebook and Twitter are growing.

Advertising experts say those social media platforms give advertising firms a way to connect with consumers. “If someone clicks on a link you can tell where that person came from,” Peterson said. “A lot of times you can cookie their browser and serve them follow-up messaging.” For example, a marketing guide for vet clinics might use these techniques to target pet owners with ads, providing personalized follow-ups to encourage appointments or promote pet care products.

A recent Gallup poll shows that 62 percent of people say viewing ads on social media does not influence their spending activities, but some marketing experts disagree.

“Consumers aren’t necessarily aware of how effective marketing can be,” Walker said. “Marketers can learn a lot about your interactions with people in your social media platform.”

Walker said digital marketing is going to get even more personal in the future.

“Consumers haven’t really figured out how many companies are gathering information about them and when they are gathering it,” Walker said.

“Because of the way that technology’s evolving,” Peterson said, ” I think everything’s going to be personalized based on your likes, and things that you said you had interest in; you can already kind of see it happening”.

The trick is going to be finding the balance between personalization and privacy.

“The White House just released a draft of the consumer privacy bill of rights,” Walker said, “and there’s some discussion as to where that’s going in the future.”

Moderator: Kelsey Ducklow

Producer: Brenda Garcia

Anchor: Teresa Arevalo

Reporters: Wahid Lodin, Gloria Star and Alexis Wadley