Online Ad Dollars Will Keep Rolling Facebook’s Way
ADOTAS – Yeah, Twitter got a lot of press with its meteoric rise in the spring, but in the social mediascape, it’s tough to deny that this was Facebook’s year — 350 million users can’t be wrong.
At the same time, MySpace’s slide into irrelevance was dramatic and the finger-pointing within News Corp. just buoyed the notion that the former social media champion had lost its mojo. According to a new report by eMarketer, Facebook’s dominance and MySpace’s decline will continue to play out in 2010 in terms of social media advertising spend.
In “Social Network Ad Spending: 2010 Outlook” eMarketer predicts Facebook and MySpace will swap spots — while U.S. advertisers tucked $465 million into MySpace in 2009, that figure will drop 23% to $360 million in 2010. Facebook would seem to be the beneficiary of the MySpace pullout, with an estimated $450 million in ad spend in 2010, a 34% hike from 2009′s $335 million.
eMarketer predicts that non-U.S. Facebook ad spending will bounce from $100 million to $155 million, an increase of 65%, while non-U.S. ad spend on MySpace will remain stagnant at $25 million.
Unlike the rest of U.S. online spending, social media advertising actually improved by nearly 4% in 2009 — $1.210 billion versus $1.165 in 2008 — and now makes up a 5.4% share of total online ad spend. As the nation snaps back from the economic downturn, eMarketer expects $1.295 billion in spending in 2010, a 7.1% hike, and $1.395 billion in 2011, a 7.7% increase over the 2010 estimate.
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