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Social network advertising spend goes negative

Written on: Jul 9, 2009
Author: Edward Barrera |
: Share; Social network advertising spend goes negative

ADOTAS — It’s a surprising, albeit a short-lived, development, though MySpace will be hurt most.

Emarketer is saying that because of a poor economy and various difficulties at MySpace, paid advertising on online social networks in the US is expected to fall 3 percent in 2009. Contrary to an earlier forecast, the research firm nows predicts that U.S. ad spending on social networks will drop to $1.1 billion this year.

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

Facebook, once a distant second to MySpace, has outperformed its rival in nearly every measure of usage—and is on track to surpass MySpace in ad spending by 2011.

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Tags: facebook, internet-advertising, MySpace, online-advertising, social-media and Social-network

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