Wednesday, December 17, 2008

Slow Growth Ahead for Social Network Ad Spend

Despite the launch of new ad formats by Facebook and MySpace, US social network ad spending will fall short of the $1.4 billion eMarketer projected for the category earlier this year—reaching $1.2 billion in 2008, and rising to only $1.3 billion in 2009.

The declining US economy and slower-than-expected revenue growth at MySpace are two reasons for the lowered near-term social network ad forecasts.

Although social network advertising—banners, search ads and new ad formats—is not growing as expected, other forms of social network marketing encompassing tactics such as customer communities and influencer outreach are proliferating.