Ad revenue dips for social networking sites

9 07 2009

The research firm eMarketer projects that advertising on social networks will drop 3% to $1.1 billion this year after a period of hot growth, amid spending cuts by marketers and problems at MySpace. The projection is a sharp reversal. In December, eMarketer projected growth of 10.2% for 2009 to $1.3 billion.eMarketer graph

However, the dip is only temporary, the firm says. It predicts that spending will hit the $1.3 billion mark next year.

“The expected rebound in spending will come as more companies focus on creating and implementing an overall social marketing strategy,” says Debra Aho Williamson, eMarketer senior analyst and author of the new report, Social Network Ad Spending: A Brighter Outlook Next Year. “And it is a clear indication that the experimental phase of social network marketing is finally drawing to an end.”

… Social network users create a gigantic amount of data about themselves—their friend networks, likes and dislikes, content-sharing activities and more.

“Harnessing this information to deliver advertising not only within social networks, but on other sites a consumer may visit, is a marketer’s dream come true,” says Ms. Williamson.

Advertisements

Actions

Information

One response

12 07 2009
matthew frederick

Interesting. I guess that time will tell whether this dip is social-networking specific or just bad economic conditions generally.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: