Companies to Spend $900 Million on Social Networks
Based on the mass proliferation of social networks -- from "mega mall" sites like MySpace to targeted niche sites -- eMarketer recently upped its projection of the U.S. advertising dollars that will be spent on social networking sites in 2007 to $900 million from $865 million.
According to a May eMarketer article, "The Crowded World of Social Networks," the company predicts that ad spending on social networking sites will increase to $1.3 billion in 2008 and will reach $2.5 billion by 2011 if current trends persist. The article also notes that MySpace and Facebook account for 72% of all U.S. revenues from social networks, and that as recently as February 2007 MySpace was rated the top U.S. site, with 5.93% market share.
eMarketer also raised its predictions for spending outside the United States to $335 million from $260 million, and estimates that the international market will spend $1.1 billion in 2011.
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