Is advertising on social media the in thing?

A report says that advertising on social media is on the rise. With slashing of advertising budgets and imminent threat of a slowdown, companies are looking for alternative routes to advertise their products and services in a cost effective way. Social media is turning out to be a boon for them if their target segment is predominently youth having good exposure to internet.

My take is that in 2-3 years time, social media would make a serious dent to the traditional advertisement pie. It is going to emerge as a key media vehicle having the same weight as TV and print media.

Update: Here is a good read on why media buying and planning agencies need to get themselves a strong digital wing.