US Ad Spend On Social Networks To Increase
EMarketer, the online market research firm, has increased its estimate of US ad spending on social networks to $900 million in 2007.
However, the eMarketer report Social Network Marketing: Where to Next? says that now is the time for social networks to fulfill the promise of social network marketing by showing that the key concept of marketing “one-to-one-to-many” provides real results.
MySpace is estimated to generate $525 million in the US this year. Facebook is expected to generate $125 million and both should continue to see healthy revenue increases. Combined, the two account for 72% of US social network ad spending in 2007 and 75% in 2008.
Debra Aho Williamson, senior analyst and author of the report, said: “But issues are beginning to surface. Is there enough interest among consumers to support so many ventures? Does every company need a social network? Indubitably, many of the hundreds of social networking ventures pouring into the market will not survive.”
A recent report from In-Stat said that although social networks have been experiencing massive growth in recent years, their future remains uncertain (see Uncertain Future For Social Networking Sites).
Meanwhile, the recent MediaTel future of digital seminar examined the social networking phenomenon and how advertisers could exploit them (see Seminar Examines Social Networking Phenomenon).
