US social network local-ad sales to hit $641m
A new US report has found that almost 20% of social networking sites’ advertising comes from local businesses and marketers.
A key finding of the report is that the majority of local ad spend is captured by two sites – MySpace and Facebook. Between them they captured $363 million dollars, or 57% of the surveyed local social network advertising.
Colby Atwood, Borrell president, said: “Work like this is a standard part of our due diligence process.
“Since our process involves measuring revenue streams, we watch every aspect of important interactive spending categories closely, until we’re sure our numbers are fairly accurate.”
Elsewhere, eMarketer forecast that US marketers will increase their social network ad spending 13.2% in 2010, to $1.3 billion (see US social network ad spending to increase).
However, paid advertising on online social networks in the US is expected to fall 3% in 2009, as a result of the poor economy and various difficulties at MySpace.
A comScore study recently revealed that 29.4 million people accessed at least one social networking site in the UK in May, averaging 4.6 hours per visitor during the month (see Almost 30m people in the UK accessed social networks in May).